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Aug. 27, 2019, 11:55 p.m. EDT

Asian markets mostly flat after U.S. yield-curve inversion deepens

Nikkei rises slightly, while Hang Seng remains flat

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By Marketwatch and Associated Press


Getty Images/iStockphoto
The skyline of Shanghai, where stocks dipped Wednesday.

Asian markets made modest moves in early trading Wednesday, following losses on Wall Street as the U.S. Treasury yield curve inverted further.

An inverted yield curve indicates investors’ worries about the economy’s health, and has been a reliable indicator of a coming recession. On Tuesday, yields on U.S. 30-year bonds dipped below those for three-month notes, providing another red flag for the global economy.

Japan’s Nikkei /zigman2/quotes/210597971/delayed JP:NIK +0.34%   edged up 0.1% while South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 -0.32%   gained 0.5% as Japan’s downgrade of South Korea’s trade status took effect. Trade tensions between the two countries have been rising, and in a tit-for-tat move, South Korea’s downgrade of Japan’s trading status is expected to kick in next month.

Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -0.09%   was last about flat, while the Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP -0.59%  declined 0.3%. Benchmark indexes in Taiwan /zigman2/quotes/210597977/delayed TW:Y9999 -0.14%  , Singapore /zigman2/quotes/210597985/delayed SG:STI -0.37%  , Malaysia /zigman2/quotes/210598052/delayed MY:FBMKLCI -0.23%   and Indonesia /zigman2/quotes/210597981/delayed ID:JAKIDX +0.21%   were mixed. Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.59%   inched up 0.3%.

Among individual stocks, e-commerce company Rakuten /zigman2/quotes/201861450/delayed JP:4755 +2.43%   slid in Tokyo trading, while IT provider NEC /zigman2/quotes/205173342/delayed JP:6701 -1.52%   and Tokyo Electric Power /zigman2/quotes/202771076/delayed JP:9501 +0.19%   gained. In Hong Kong, Sunny Optical /zigman2/quotes/206687505/delayed HK:2382 +1.36%   and oil producer CNOOC /zigman2/quotes/203421416/delayed HK:883 0.00%   rose, while Tencent /zigman2/quotes/204605823/delayed HK:700 +0.48%   declined. LG Electronics /zigman2/quotes/209966407/delayed KR:066570 +0.29%   and Hyundai Motor /zigman2/quotes/206684590/delayed KR:005380 -0.41%   gained in South Korea, and Foxconn /zigman2/quotes/204111604/delayed TW:2354 -0.15%   fell in Taiwan. In Australia, Rio Tinto /zigman2/quotes/200083756/delayed AU:RIO +0.83%   and Beach Energy /zigman2/quotes/200513631/delayed AU:BPT -0.43%   advanced.

Investors are “finding it difficult to put a finger as to where the ongoing U.S.-China trade issue is headed,” said Jingyi Pan of IG in a report. “The saying that we are a tweet (from Trump) away from the next trade escalation between U.S. and China had certainly grown to become the broad view.”

On Wall Street, investors shifted money from stocks to U.S. government bonds, gold and other traditional safe-haven assets.

UBS, the largest wealth manager in the world, recommended that customers reduce their exposure to stocks, the first time the bank has done so since the depths of Europe’s debt crisis in 2012.

The benchmark S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.28%   fell 0.3% to 2,869.16. The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.09%   dropped 0.5% to 25,777.90. The Nasdaq /zigman2/quotes/210598365/realtime COMP +0.40%   slid 0.3% to 7,826.95.

U.S. and Chinese trade negotiators are due to meet next month in Washington, but neither side has given any indication of offering concessions to break a deadlock. A round of talks last month in Shanghai ended with no sign of progress.

Washington and Beijing fueled investor pessimism on Friday with an additional round of tit-for-tat tariff hikes. Their punitive duties on billions of dollars of each other’s goods already have battered exporters on both sides and prompted forecasters to cut economic growth outlooks.

“There are no grounds to believe China will concede to a deal based on unilateral, lopsided demands under rising tariffs duress,” said Mizuho Bank in a report.

Benchmark U.S. crude   gained 56 cents to $55.49 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.29 on Tuesday to close at $54.93. Brent crude  , used to price international oils, added 41 cents to $59.44 per barrel in London. It advanced 91 cents the previous session to $59.03.

The dollar /zigman2/quotes/210561789/realtime/sampled USDJPY -0.0764%   advanced to 105.84 yen from Tuesday’s 105.76 yen.

/zigman2/quotes/210597971/delayed
JP : Nikkei
22,527.17
+75.31 +0.34%
Volume: 0.00
Oct. 18, 2019 1:08p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,071.38
-6.56 -0.32%
Volume: 282,189
Oct. 18, 2019 1:08p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
26,824.37
-24.12 -0.09%
Volume: 539,182
Oct. 18, 2019 12:05p
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/zigman2/quotes/210598127/delayed
CN : China: Shanghai
2,959.76
-17.58 -0.59%
Volume: 7.31B
Oct. 18, 2019 11:57a
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/zigman2/quotes/210597977/delayed
TW : Taiwan Stock Exchange
11,171.10
-15.78 -0.14%
Volume: 0.00
Oct. 18, 2019 12:08p
loading...
/zigman2/quotes/210597985/delayed
SG : Singapore: SGX
3,114.70
-11.44 -0.37%
Volume: 0.00
Oct. 18, 2019 12:13p
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/zigman2/quotes/210598052/delayed
MY : Malaysia
1,570.81
-3.69 -0.23%
Volume: 0.00
Oct. 18, 2019 12:13p
loading...
/zigman2/quotes/210597981/delayed
ID : Indonesia Stock Exchange
6,194.16
+13.14 +0.21%
Volume: 0.00
Oct. 18, 2019 11:18a
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
6,645.20
-39.50 -0.59%
Volume: 426,018
Oct. 18, 2019 3:08p
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/zigman2/quotes/201861450/delayed
JP : Japan: Tokyo
¥ 1,055.00
+25.00 +2.43%
Volume: 7.21M
Oct. 18, 2019 1:08p
P/E Ratio
8.10
Dividend Yield
0.43%
Market Cap
¥1368.86 billion
Rev. per Employee
¥74.20M
loading...
/zigman2/quotes/205173342/delayed
JP : Japan: Tokyo
¥ 4,545.00
-70.00 -1.52%
Volume: 938,000
Oct. 18, 2019 1:08p
P/E Ratio
23.36
Dividend Yield
1.32%
Market Cap
¥1214.13 billion
Rev. per Employee
¥26.58M
loading...
/zigman2/quotes/202771076/delayed
JP : Japan: Tokyo
¥ 533.00
+1.00 +0.19%
Volume: 3.57M
Oct. 18, 2019 1:08p
P/E Ratio
5.29
Dividend Yield
N/A
Market Cap
¥866.81 billion
Rev. per Employee
¥149.25M
loading...
/zigman2/quotes/206687505/delayed
HK : Hong Kong
HK$ 118.90
+1.60 +1.36%
Volume: 2.74M
Oct. 18, 2019 11:59a
P/E Ratio
41.35
Dividend Yield
0.56%
Market Cap
HK$126.14 billion
Rev. per Employee
HK$1.08M
loading...
/zigman2/quotes/203421416/delayed
HK : Hong Kong
HK$ 11.94
0.00 0.00%
Volume: 17.96M
Oct. 18, 2019 11:59a
P/E Ratio
8.07
Dividend Yield
6.11%
Market Cap
HK$529.52 billion
Rev. per Employee
HK$13.96M
loading...
/zigman2/quotes/204605823/delayed
HK : Hong Kong
HK$ 332.60
+1.60 +0.48%
Volume: 4.96M
Oct. 18, 2019 11:59a
P/E Ratio
31.09
Dividend Yield
0.30%
Market Cap
HK$3139.51 billion
Rev. per Employee
HK$8.27M
loading...
/zigman2/quotes/209966407/delayed
KR : S. Korea: KRX
69,000.00
+200.00 +0.29%
Volume: 150,131
Oct. 18, 2019 1:08p
P/E Ratio
13.76
Dividend Yield
1.09%
Market Cap
₩12658.60 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206684590/delayed
KR : S. Korea: KRX
122,500
-500.00 -0.41%
Volume: 242,148
Oct. 18, 2019 1:08p
P/E Ratio
17.10
Dividend Yield
3.27%
Market Cap
₩32352.50 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/204111604/delayed
TW : Taiwan
NT$ 65.10
-0.10 -0.15%
Volume: 2.26M
Oct. 18, 2019 12:08p
P/E Ratio
10.17
Dividend Yield
4.92%
Market Cap
NT$91.23 billion
Rev. per Employee
NT$888.52M
loading...
/zigman2/quotes/200083756/delayed
AU : Australia: Sydney
$ 87.94
+0.72 +0.83%
Volume: 867,433
Oct. 18, 2019 3:08p
P/E Ratio
8.01
Dividend Yield
10.20%
Market Cap
$146.34 billion
Rev. per Employee
$1.14M
loading...
/zigman2/quotes/200513631/delayed
AU : Australia: Sydney
$ 2.34
-0.01 -0.43%
Volume: 3.39M
Oct. 18, 2019 3:07p
P/E Ratio
9.26
Dividend Yield
0.85%
Market Cap
$5.40 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
2,997.95
+8.26 +0.28%
Volume: 1.62B
Oct. 17, 2019 5:02p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,025.88
+23.90 +0.09%
Volume: 225.06M
Oct. 17, 2019 5:02p
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
8,156.85
+32.67 +0.40%
Volume: 1.68M
Oct. 17, 2019 5:16p
loading...
/zigman2/quotes/210561789/realtime/sampled
US : Tullet Prebon
108.5600
-0.0830 -0.0764%
Volume: 0.0000
Oct. 18, 2019 12:28a
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