INSUBCONTINENT EXCLUSIVE:
SHANGHAI: Asian shares turned lower on Friday as trepidation ahead of the start of the US corporate earnings season and underlying anxiety
over the global growth outlook eclipsed some reassuring US economic data.
MSCI's broadest index of Asia-Pacific shares outside Japan was
last down 0.1 percent, having see-sawed within a tight range throughout the morning session
Despite broad weakness in the region, with
Chinese blue-chips down 0.8 percent ahead of the release of trade data, higher Chinese iron ore prices helped to push Australia's SP/ASX 200
index up 0.7 percent.
Japan's Nikkei stock index gained 0.5 percent.
Michael McCarthy, chief market strategist at CMC Markets and
Stockbroking in Sydney, said markets were in a "holding pattern" as they waited on Chinese trade data and the US earnings season.
Matt
Simpson, senior market analyst at GAIN Capital in Singapore, said a dovish shift by central banks, together with possible progress on a
US-China trade deal and US President Donald Trump's talking up of the markets could help to support equities in the coming weeks.
"Consumer
discretionary and information technology are more than outperforming the SP 500 rebound, and that generally is what you see in the start of
an upswing, not near the end of a cycle," he said.
The tepid performance of Asian markets Friday followed a choppy session on Wall Street
that left major indexes treading water, hemmed in by anxiety ahead of corporate earnings and worries about a global economic slowdown, which
capped gains stemming from upbeat US economic data.
The Dow Jones Industrial Average fell 0.05 percent to 26,143.05, the SP 500 closed flat
at 2,888.32 and the Nasdaq Composite dropped 0.21 percent to 7,947.36.
Tempering expectations for a sharp slowdown in US growth as data that
showed the number of Americans filing applications for unemployment benefits dropped to a 49-1/2-year low last week
Comments from US Federal
Reserve Vice Chairman Richard Clarida that the US economy is in a "good place" but reemphasising the Fed's patience on rate hikes, also
helped to reassure investors.
"One of the big takeaways from the past few days has been the broad decline in volatility across markets,"
National Australia Bank (NAB) analysts said in a morning note
NAB attributed the muted reaction to recent events to dovish policy shifts by central banks, signs that China's stimulus measures are having
an effect, continued US-China trade talks and the Brexit delay.
International Monetary Fund Managing Director Christine Lagarde said on
Thursday that the six-month delay of Britain's exit from the European Union avoids the "terrible outcome" of a "no-deal" Brexit, but does
nothing to lift uncertainty over the final outcome.
Underscoring ongoing threats to the health of the global economy, IMF Deputy Managing
Director Mitsuhiro Furusawa warned that a bigger-than-expected slowdown in China's economy remains a key risk to global growth.
US Treasury
yields inched lower amid the cautious retreat in shares, after earlier rising on the US jobless claims data, stronger producer prices and a
weak 30-year bond auction.
On Friday morning, the yield on benchmark 10-year Treasury notes fell to 2.497 percent compared with its US close
of 2.504 percent on Thursday
The two-year yield was unchanged at 2.356 percent.
In currency markets, the dollar was up 0.1 percent against the yen at 111.75, but a
strong gain in the euro, which jumped 0.36 percent on the day to buy $1.1290, pushed the dollar index down 0.2 percent to 96.979.
Traders
said demand for the euro jumped among Japanese players amid speculation toward cross-border flows.
US crude ticked up 0.35 percent at $63.80
a barrel, while Brent crude was up 0.28 percent at $71.03 per barrel.
Gold was flat after falling more than 1 percent on Thursday to break
below the key $1,300 level following solid US data
Spot gold traded at $1,292.03 per ounce.
