Australia Stocks Retreat, Dollar Steady Ahead of Fed

Australian and Chinese stocks dropped, while the dollar was little changed before a Federal Reserve meeting where policy makers will need to mull over another soft patch in the U.S. economy.

A poor Apple Inc. earnings report hit Nasdaq futures after the company’s shares slid in after-hours U.S. trading, though technology-rich Taiwanese markets avoided declines. Australia’s benchmark stock index headed for its biggest loss since March, hurt by weaker iron-ore prices and banking shares, while China slipped amid focus on tighter financial regulation and some softening in recent economic data. South Korea’s tech stocks weren’t trading, amid holidays there and in Japan and Hong Kong.

Even the Federal Open Market Committee meeting may provide little impetus for the dollar, which was little changed against the euro and yen. Societe Generale SA analysts said in a note that “we expect little impact from the meeting in the market, particularly ahead of the payrolls print and the second round of the French elections” — events coming on Friday and Sunday.

Here are the main moves in markets:

Currencies

· The yen traded at 112.09 per dollar as of 1:25 p.m. in Singapore, after four days of losses.

· The euro was at $1.0933
· The kiwi rose as much as 0.5 percent after New Zealand’s first-quarter payrolls climbed more than forecast, though the move later eased; it was up 0.2 percent at 69.49 U.S. cents

Stocks

· Australia’s S&P/ASX 200 Index slid 1 percent, with declines in shares from BHP Billiton Ltd. to Australia & New Zealand Banking Group Ltd., which missed profits estimates Tuesday.

· Futures on the Nasdaq 100 lost 0.3 percent after that gauge and the Nasdaq Composite both posted a record high. Futures on the S&P 500 retreated 0.1 percent after the underlying gauge rose 0.1 percent Tuesday, when the Stoxx Europe 600 Index gained 0.8 percent.

· Taiwan’s Taiex was little changed Hon Hai Precision Industry Co. which makes Apple’s iPhones, was up 0.5 percent, shrugging off its customer’s report on weaker sales.

Bonds

· Yields on 10-year Treasuries fell 4 basis points to 2.28 percent Tuesday, reflecting recent disappointment in consumer spending and price data.

· The yield on Australian government bonds with a similar maturity dropped 1 basis point, to 2.592 percent.

Commodities

· Oil rose 0.7 percent following Tuesday’s 2.4 percent decline. Crude had dropped to the lowest level in more than a month after Saudi Arabia signaled it’s faring better than expected with low prices.

· A gauge of iron-ore prices in China was down 1.7 percent earlier, at 524.50 yuan a ton. Gold traded little changed at $1,255.77, while copper futures declined 0.7 percent.


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