Asian stocks falter as global growth fears temper tech boost
Asian shares wobbled in a choppy session on Friday as abysmal economic data from the United States and rising global COVID-19 cases weighed on sentiment, despite strong U.S. tech earnings and signs of manufacturing recovery in China and Japan.
The U.S. dollar was also set for its worst month in a decade amid expectations the Fed will maintain its ultra-loose monetary policy for years.
U.S. GDP collapsed at a 32.9% annualized rate in the second quarter, the deepest decline on record, while jobless claims rose last week, adding to signs the momentum of economic recovery has slowed.
After rising in early trade, MSCI’s broadest index of Asian shares outside Japan turned lower by late morning. It was last down 0.22%.
Australian shares slid 1.85% amid month-end profit taking and Seoul’s Kospi ticked down 0.2%. Japan’s Nikkei dropped 1.87% as a stronger yen weighed on exporters.
Chinese blue-chips were last down 0.29% in a choppy session.
But futures resolutely pointed to a positive open on Wall Street on Friday after Apple, Amazon, Facebook and Alphabet reported quarterly earnings on the same day for the first time ever, all topping Wall Street estimates.
E-mini futures for the S&P 500 rose 0.38%.
U.S. stock markets, oil prices and the dollar slid on Thursday as the new data underscored the deep economic impact of the coronavirus and U.S. President Donald Trump raised the possibility of delaying the November election.
On Wall Street, the Dow Jones Industrial Average fell 225.92 points, or 0.85%, to 26,313.65, the S&P 500 lost 12.22 points, or 0.38%, to 3,246.22 and the Nasdaq Composite added 44.87 points, or 0.43%, to 10,587.81.
In the currency market, the dollar slumped 0.39% against the yen to 104.31, while the euro jumped 0.4% to buy $1.1889.
The greenback remains on course for its worst month in a decade, with the dollar index dropping 0.12% to 92.679.
Crude oil recovered from an overnight slump, with global benchmark Brent crude rising 0.54% to 43.17 a barrel. U.S. crude added 0.3% to $40.04 per barrel.
Gold also turned higher, with spot gold trading 0.48% higher at $1,968.84 per ounce, just short of record highs.
U.S. benchmark 10-year Treasury notes yielded 0.525%, down from a U.S. close of 0.541% on Thursday. The two-year yield touched 0.1133% compared with a U.S. close of 0.121%.