Asia Stocks in Worst Week Since March; Yen Rises: Markets Wrap
Bloomberg.com — Asian stocks retreated further on Friday, set for the worst week since March, thanks to continuing worries about emerging markets and the outlook for the technology sector’s earnings. The yen headed for its biggest two-day gain since July.
Equities fell in Japan, South Korea and Australia, while stocks in China posted gains. Technology shares lagged behind, following their U.S. counterparts lower amid concern about the durability of chip demand. Emerging-market stocks steadied after entering a bear market, while currencies advanced. The yen strengthened after the Wall Street Journal reported President Donald Trump may turn his sights on trade with Japan.
Next up is the key U.S. payroll report on Friday, which will offer clues on the labor market’s health and the state of wage inflation. For now, emerging economies hold the key to sentiment, with recent losses fueling fears that turmoil could spill into developed markets. President Trump could announce tariffs on $200 billion in Chinese imports as early as Friday after a public comment period on the administration’s plan ended.
Elsewhere, Brazil’s stocks and the currency jumped after presidential candidate Jair Bolsonaro was stabbed during a street rally as traders bet that the attack will wind up creating sympathy for the candidate and help propel him into the second round of voting. The ruble fell after Russia’s Prime Minister Dmitry Medvedev called on the nation’s central bank to become more active.