Asia Stocks Trade Mixed; Yuan Stable After Decline: Markets Wrap - Ester Holdings

Asia Stocks Trade Mixed; Yuan Stable After Decline: Markets Wrap

Bloomberg.com — Asian stocks traded mixed Wednesday, with Chinese equities stalling after a three-day rally propelled by signs of a shift toward stimulus. The yuan was little changed after dropping to the weakest against the dollar in more than a year Tuesday.

Equity benchmarks in Tokyo and Hong Kong gained, while shares fell in Sydney and Seoul, and were flat in Shanghai. The yen and Japanese bond yields were little changed after the Bank of Japan refrained from scaling back its bond purchases at a regular operation Wednesday, following speculation officials may consider tweaking their stimulus policy. Ten-year Treasury yields dipped to 2.94 percent. Oil ticked up on stockpile decreases.

The rally in Chinese equities paused after the Shanghai Composite on Tuesday ratcheted up its biggest three-day gain in more than two years. China’s moves to shore up growth amid the rumbling trade war have helped to improve sentiment in its beaten-down equity market.

More earnings will roll in around the world, while the path of monetary policy is also in focus as the European Central Bank meets to decide interest rates.

“What we are seeing right now is positive earnings news on the back of fairly positive tax cuts and that is encouraging momentum in terms of economic growth,” Greg Daco, New York-based head of U.S. macro economics at Oxford Economics Ltd., told Bloomberg TV. “But we have to be wary that these tariffs have only gradually started to be implemented.”

Elsewhere, Turkey’s lira sank as the nation’s central bank unexpectedly held rates on Tuesday, fueling fears that monetary policy under President Recep Tayyip Erdogan’s watch will remain too loose to contain price pressures. Sterling held on to gains triggered by Prime Minister Theresa May taking control of Brexit talks, relegating her Brexit Department.

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