(Bloomberg) — Asian stocks were mixed on Wednesday following declines in US shares as hopes that the Federal Reserve would soften its hawkish stance faded on robust US jobs data.
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Japan’s Topix gauge edged higher while the Nikkei 225 fell, South Korean shares inched higher while Australian shares were up slightly. Futures for Hong Kong fell and US contracts fluctuated.
Investors parsed mixed messages from China about the prospect of an end to the country’s Covid-zero policy. The speculation sent Hong Kong shares surging Tuesday before staging a rapid reversal after comments that downplayed the prospect. An index of Chinese giants that trades in New York jumped.
The S&P 500 closed lower after trading as much as 1% higher during Tuesday’s session in a reverse triggered by the surprise rebound in job openings. Separate US manufacturing figures showed new orders contracted in October for the fourth time in five months, painting a less-rosy picture of the economy.
The data come ahead of the Fed meeting later Wednesday when the central bank is set to raise interest rates by 75 basis points for the fourth time in a row, bringing the upper limit of its target range to 4%. The US 10-year yield traded flat around 4% in Asia while the more policy-sensitive two-year yield was steady near to 4.5%.
Former Treasury Secretary Larry Summers said the Fed should “stay on the current course,” warning that growing expectations the central bank would pivot were “badly misguided” and extend a pandemic track record among economists for “being dismally wrong on inflation.”
Shares in Advanced Micro Devices Inc., the computer chip company, rose in after-hours trading following third-quarter earnings that topped estimates as the company made further inroads into the lucrative server chip market.
Elsewhere in markets, a gauge of the dollar was little changed, gold was steady an oil inched higher.
Key events this week:
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EIA crude oil inventory report, Wednesday
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Federal Reserve rate decision, Wednesday
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US MBA mortgage applications, ADP employment, Wednesday
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Bank of England rate decision, Thursday
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US factory orders, durable goods, trade, initial jobless claims, ISM services index, Thursday
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ECB President Christine Lagarde speaks, Thursday
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US nonfarm payrolls, unemployment, Friday
Some of the main moves in markets:
Stocks
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Futures on the S&P 500 were little changed as of 9:26 a.m. Tokyo time. The S&P 500 fell 0.4%
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Nasdaq 100 futures were little changed. The Nasdaq 100 fell 1%
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The Topix Index rose 0.1%
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Hang Seng futures fell 0.3%
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Australia’s S&P/ASX 200 Index rose 0.1%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro was little changed at $0.9878
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The Japanese yen rose 0.3% to 147.85 per dollar
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The offshore yuan was little changed at 7.3124 per dollar
Cryptocurrencies
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Bitcoin fell 0.2% to $20,430.87
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Ether was little changed at $1,575.42
Bonds
Commodities
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