(Bloomberg) -- Asian stocks were mixed Wednesday on low volumes after a disappointing U.S. manufacturing report reignited concern about global economic growth. The yuan edged up after a stronger-than forecast daily currency fixing.
Most Japanese shares fell, along with those in Australia. Chinese equities climbed along with shares in Hong Kong, South Korea and Taiwan. S&P 500 futures edged up with Treasury yields after U.S. equities retreated and bonds rose overnight. The dollar was little changed. Australia’s dollar climbed after growth came in line with estimates, easing fears of a further deterioration in the outlook.
The Institute for Supply Management’s U.S. purchasing managers index fell below 50 in August, indicating a contraction in U.S. manufacturing and joining a slew of weak readings for factories across the globe. The data caused traders to boost bets on deeper rate cuts by the Federal Reserve this year.
“We have a global manufacturing slowdown underway and a global capex slowdown underway and we expect further weakness there,” John Herrmann, director of U.S. rates strategy at Mufg Securities Americas Inc., told Bloomberg TV. “These trade negotiations aren’t going to go any way between now and the election” in the U.S. next year, he said.
Investors remain on watch for any news of a schedule for China-U.S. talks. Chinese and American officials are struggling to agree on the next step after Washington rejected Beijing’s request to delay tariffs that took effect over the weekend.
Elsewhere, the pound remained steady as U.K. Prime Minister Boris Johnson was defeated in a parliament vote that put Britain on course for a general election. Oil was around $54 a barrel amid concern an economic slowdown from the trade war may dent demand. The eye of Hurricane Dorian has started to move northwest off the U.S. coast.
Here are some key events coming up:
- Bank of England Governor Mark Carney speaks before Treasury Committee on Wednesday alongside colleagues Andy Haldane, Jonathan Haskel and Gertjan Vlieghe, on the bank’s August Inflation Report; he’ll then appear alone to discuss the U.K.’s economic relationship with the EU.
- Fed speakers this week include New York Fed’s John Williams (NYSE:WMB) on Wednesday and Fed chair Jerome Powell on Friday.
- The U.S. jobs report on Friday is projected to show the widely watched nonfarm payrolls rose by 158,000 in August, versus 164,000 the month prior. Estimates are for unemployment to be steady at 3.7% and the average hourly earnings rate of increase to slow to 3.0%.
Stocks
- Japan’s Topix index lost 0.3% as of 1:30 p.m. in Tokyo.
- Hong Kong’s Hang Seng advanced 1.2%.
- The Shanghai Composite was up 0.2%.
- South Korea’s Kospi rose 0.1%.
- Futures on the S&P 500 Index advanced 0.4%. The underlying gauge sank 0.7% on Tuesday.
- Euro Stoxx 50 futures added 0.5%.
- The yen was flat at 105.98 per dollar.
- The offshore yuan added 0.1% to 7.1701 per dollar.
- The Bloomberg Dollar Spot Index slipped 0.1%.
- The euro bought $1.0975.
- The British pound rose 0.2% to $1.2103.
- The yield on 10-year Treasuries rose one basis point to 1.47%.
- Australia’s 10-year yield dipped to 0.92%.
- West Texas Intermediate crude rose 0.4% to $54.15 a barrel.
- Gold fell 0.3% to $1,542.92 an ounce.