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Asian Stocks Face Mixed Start; Dollar Steady: Markets Wrap

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Asian equities headed for a mixed start after an uninspiring American trading session that saw the dollar stabilize while stocks made little headway.

Futures contracts signaled a lower open in Japan and Hong Kong stock markets, with Australia indicating small gains. Declines at Alphabet Inc. weighed on Nasdaq 100 Index futures after sales at Google’s parent fell short of the most-optimistic estimates. The euro held on to losses triggered by data showing the region’s economy cooling.

Earnings season is ramping up ahead of the eagerly anticipated Federal Reserve policy decision on Wednesday. Data Monday in Europe cast doubt over the strength of the recovery and bond investors have cast their votes on a weak inflation outlook in the U.S. Political turmoil in Washington remains front and center after senior adviser Jared Kushner confirmed four contacts with Russians during his father-in-law’s presidential campaign and the transition. Donald Trump’s son and former Trump campaign Chairman Paul Manafort will go before Senate committees on Wednesday.

Read our Markets Live blog here.

Here are some key events coming up this week:

  • The U.K. holds post-Brexit trade talks with the U.S. in Washington.
  • China posts industrial profits for last month, with early indicators pointing upward.
  • Japanese June data also due this week may show sluggish CPI, even amid a tightening labor market and increased household spending.
  • The Fed is expected to make no change to policy on Wednesday with investors and economists parsing the statement for clues on how officials plan to proceed in reducing their massive portfolio.
  • The U.S. economy probably gained traction in the second quarter as spending by American consumers picked up after a lull early this year. The gross domestic product report follows the two-day Fed policy meeting.
  • Results from Facebook Inc., Deutsche Bank AG, Nomura Holdings Inc., BNP Paribas SA and UBS Group AG are among those expected this week.

Here are the main moves in markets:

  • The yen traded at 111.17 per dollar as of 6:59 a.m. in Tokyo following five days of gains. The Bloomberg Dollar Spot Index closed little changed on Monday.
  • The euro was at $1.1637 after dropping 0.2 percent on Monday.
  • Futures on the S&P 500 Index were little changed after the underlying gauge slipped 0.1 percent.
  • Futures on Japan’s Nikkei 225 traded in Chicago slid 0.1 percent as did contracts on Hong Kong’s Hang Seng Index. Futures on Australia’s S&P/ASX 200 Index rose 0.2 percent. 

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