(Bloomberg) — Asian stocks fell and European stock futures edged lower as investors weighed whether there is still room for the artificial intelligence bull market to continue. Chinese real estate stocks rose ahead of Thursday’s press conference.
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MSCI’s Asia-Pacific index fell for a third straight day, with semiconductor stocks including SK Hynix and Samsung Electronics falling after major equipment supplier ASML Holding NV cut its 2025 outlook. US stock futures and US Treasuries were little changed.
Bloomberg’s China real estate index rose as much as 8.3% as the market prepared for a joint press conference by government officials including the housing minister and the central bank.
Chinese stocks have soared since late September, when a flurry of optimism sparked by a series of central bank stimulus measures began to dissipate. Many investors remain optimistic enough to wait to see if authorities are prepared to unleash more firepower to support the economy.
Kenny Wen, head of investment strategy at KGI Asia, said any announcement “may only help real estate stocks for a day or two, but it won’t help the market as a whole.” is only in the real estate sector,” he said, adding that investors are still waiting for an announcement in the next few days. It’s a trillion yuan fiscal policy, he said.
Netherlands-based ASML’s warning poured cold water on chip stocks’ bull run. ASML’s peers, including Tokyo Electron and top foundry Taiwan Semiconductor Manufacturing Co., fell during Asian trading hours. In the U.S., Nvidia Inc. fell 4.7%, signaling a slowdown at some of the industry’s biggest companies.
“The technology-driven setback caused by the downturn in semiconductor manufacturers not only reflects earlier skepticism about AI-driven upswings, but more broadly, the slowdown in this economically sensitive industry is certainly a sign of global economic growth. does not bode well for the outlook,” Hebbe said. Mr. Chen is an analyst at IG Markets.
The pound fell after Britain’s inflation rate fell below the Bank of England’s 2% target for the first time in three-and-a-half years, a fall that set the stage for a second interest rate cut next month. The pound fell 0.4% after the news, hitting a one-month low of $1.3021.
The Bloomberg dollar index was little changed in Asia after it rose to a nearly two-month high in U.S. trade as former President Donald Trump defended his proposed hike in tariffs on foreign imports. Atlanta Fed President Rafael Bostic said he expects the U.S. economy to slow but remain strong this year, adding that there could be some bumps in the downward path for inflation.
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The yen traded around 149 yen to the dollar after Bank of Japan board member Seiji Adachi emphasized the need to take a phased approach to raising benchmark interest rates. New Zealand’s dollar and sovereign bond yields fell as annual inflation fell in the third quarter.
Southeast Asia’s three largest economies will announce their monetary policy decisions later on Wednesday. Indonesia and Thailand are expected to keep interest rates unchanged, while the Philippines is expected to cut rates.
oil gain
Oil rose as Israel said it would decide independently how to attack Iran, leaving energy infrastructure open to targets. Oil prices have been on a roller coaster this month, with prices fluctuating due to tensions in the Middle East and China’s efforts to revive growth in its biggest importer.
“It seems like dealers these days are just tying machines to oil futures,” said Christoph Rieger, head of rates and credit research at Commerzbank. “Whether it makes sense to adjust the long-term inflation outlook in light of this is another question.”
In other commodities, iron ore futures rose to just under $107 a tonne in Singapore after swinging between gains and losses. Gold progressed.
This week’s main events:
Morgan Stanley earnings results Wednesday
ECB interest rate decision, Thursday
U.S. retail sales, unemployment claims, industrial production, Thursday
Fed’s Austan Goolsby speaks on Thursday
China GDP, Friday
U.S. housing starts Friday
Fed’s Christopher Waller and Neel Kashkari speak on Friday
The main movements in the market are:
stock
S&P 500 futures were little changed as of 7:11 a.m. London time.
Nasdaq 100 futures rose 0.2%
Dow Jones Industrial Average futures little changed
MSCI Asia Pacific Index falls 0.9%
MSCI Emerging Markets Index falls 0.6%
currency
Bloomberg Dollar Spot Index little changed
The euro fell 0.1% to $1.0881.
The Japanese yen remained almost unchanged at 149.32 yen to the dollar.
The offshore yuan was almost unchanged at 7.1303 yuan to the dollar.
The British pound fell 0.4% to $1.3017.
cryptocurrency
Bitcoin rose 1.2% to $67,249.51.
Ether rose 1.9% to $2,619.69
bond
The 10-year Treasury yield fell 1 basis point to 4.02%.
Germany’s 10-year bond yield fell 5 basis points to 2.22%.
UK 10-year bond yields fell 8 basis points to 4.16%.
merchandise
Brent crude rose 0.3% to $74.45 per barrel
Spot gold rose 0.3% to $2,670.85 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Kurt Schussler, Yuling Yang, Jake Lloyd-Smith, and Zhu Lin.
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