(Bloomberg) — Asian stocks headed for a mixed start Thursday after a lackluster U.S. session amid ongoing trade concerns. Treasuries fell as investors wound back bets on Federal Reserve interest-rate cuts.
Futures edged higher in Japan and Hong Kong, and slipped in Australia. Gains on the S&P 500 petered out and the index closed lower as investors weighed mixed messages on trade heading into this weekend’s highly-anticipated meeting between Presidents Donald Trump and Xi Jinping. Asian chip makers and suppliers will be in focus after Micron Technologies Inc.’s profit topped estimates, pushing the Philadelphia Semiconductor Index to the highest level in more than a month. Ten-year Treasury yields rose to 2.05%.
The U.S.-China trade spat is looming large for investors ahead of this weekend’s meeting of G-20 leaders in Japan. U.S. President Donald Trump once again threatened Wednesday substantial additional tariffs if a trade deal can’t be reached. Meanwhile, many traders hope the Fed will counter any headwinds to global growth with aggressive interest-rate cuts, though Fed member James Bullard made clear Tuesday that’s not a given.
“The Fed needs to push back,” Greg Peters, senior portfolio manager at PGIM Fixed Income, told Bloomberg TV. “The direction is correct but the number is too much. The Fed is trying to disconnect their policy to the unknown of trade.”
Elsewhere, Bitcoin fell after surging above $13,000. Oil retreated after jumping the previous session on supply concerns.
Here are some key events coming up:
China releases industrial profit data for May on Thursday.The Group of 20 summit is in Osaka, Japan, on Friday and Saturday.
These are the main moves in markets:
Futures on the S&P 500 Index were little changed at 8:08 a.m. in Tokyo. The underlying gauge fell 0.1% Wednesday.Futures on Japan’s Nikkei 225 rose 0.2%.Hang Seng futures earlier added 0.6%.Futures on Australia’s S&P/ASX 200 Index slipped 0.2%.
The yen was at 107.74 per dollar.The offshore yuan held at 6.8867 per dollar.The Bloomberg Dollar Spot Index was little changed.The euro bought $1.1373.
The yield on 10-year Treasuries advanced about six basis points to 2.05%.Australia’s 10-year bond yield added four basis points to 1.33%.
West Texas Intermediate crude slipped 0.7% to $58.96 a barrel.Gold held at $1,407.66 an ounce.
–With assistance from Vildana Hajric, Randall Jensen and Nancy Moran.
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