Asia Stock Futures Mixed After U.S. Shares Dip: Markets Wrap

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(Bloomberg) — Stocks in Asia were set for a muted start Wednesday as investors assessed a report that tariffs on billions of dollars of Chinese goods will likely stay in place until after the presidential election. U.S. stocks edged lower with Treasury yields.

Shares saw modest gains in Australia, while futures were flat in Japan and nudged higher in Hong Kong. The S&P 500 Index slipped after rising to an intraday record high earlier in Tuesday’s session. While positive results from big banks had pushed prices higher, concerns remain about progress in U.S.-China trade negotiations. Treasuries climbed after a gauge of underlying inflation rose less than forecast.

© Bloomberg Forward price-to-earnings ratios for U.S. stocks are at elevated levels

The two sides have an understanding that no sooner than 10 months after the signing of the agreement at the White House Wednesday, the U.S. will review progress and potentially trim tariffs now in place on $360 billion of imports from China, according to people familiar with the matter.

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“Right now we are in a more constructive process,” Omar Aguilar, CIO for equities at Charles Schwab, told Bloomberg TV. “While the uncertainty is still there, the fact that there’s a laid out plan for phase one and phase two has already been priced by the market and there is a positive view.”

Elsewhere, oil ticked lower and gold remained steady.

Here are some events to watch for this week:

The biggest American financial institutions kick off earnings season, with Bank of America Corp., Goldman Sachs Group Inc., Morgan Stanley and BlackRock Inc. next up.The Fed’s so-called beige book is due on Wednesday.China GDP comes on Friday.

These are the major moves in markets:

Stocks

Futures on the S&P 500 were little changed as of 8 a.m. in Tokyo. The underlying gauge fell 0.2% on Tuesday.Futures on Japan’s Nikkei 225 were flat.Hang Seng futures earlier rose 0.6%.Australia’s S&P/ASX 200 Index added 0.3%.

Currencies

The yen was at 109.98.The offshore yuan held at 6.8915 per dollar.The euro bought $1.1128.The Bloomberg Dollar Spot Index was flat.

Bonds

The yield on 10-year Treasuries dropped four basis points to 1.81%.Australia’s 10-year yield was at 1.22%, down three basis points.

Commodities

West Texas Intermediate crude oil dipped 0.1% to $58.17 a barrel.Gold was steady at $1,546.78 an ounce.

–With assistance from Claire Ballentine, Vildana Hajric and Romaine Bostick.

To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net

To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Cormac Mullen

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