SHANGHAI (Reuters) – Asian equities shook in trading early Friday and fought to shake off the previous day's global downturn after weaker results from technology giants Alphabet Inc. and Amazon.com compounded worries over global trade and economic growth.
A man stands in front of an electronic board showing the Japanese Nikkei average outside a brokerage firm in Tokyo, Japan, on October 25, 2018. REUTERS / Kim Kyung-Hoon
The shaky start for regional exchanges came despite a boom on Wall Street overnight, fueled by bargain hunting and positive gains by Microsoft Corp.MSFT.O).
However, these gains were denominated as shares of Amazon.com Inc (AMZN.O) and Alphabet Inc (GOOGL.O) fell sharply after the closing bell with disappointing wins.
Predictably, Nasdaq futures NQcv1 fell 0.9 percent and ESC1 S & P E-Mini futures 0.6 percent, underscoring broad concerns over US corporate earnings and the outlook for the economy, which hit Wall Street on Wednesday. Have triggered a tailspin course.
In Asia, MSCI was the largest index for Asia-Pacific equities outside Japan. The MIAPJ0000PUS stayed flat after pushing down a bit for the first hour.
The index has been hit by a sell-off in recent days, falling more than 3 percent this week.
South Korea's Kospi .KS11 also fell 0.6 percent, and Australia's shares were down 0.2 percent on modest gains. Japan's Nikkei stock index. N225 was the biggest winner, up 0.5 percent, though that on Thursday dropped just 3.7 percent slide.
Financial markets were unsettled in recent sessions due to concerns about global growth as investors worried about Sino-U.S. friction, a mix of US corporate earnings, Federal Reserve rate hikes and budget deficits in Italy. A slowdown in China was particularly worrying for policymakers and investors as it hit stock markets from stocks to currencies and commodities.
Capital Economics analysts issued a cautious comment, suggesting that the S & P 500 Index's upswing on Thursday was only temporary as investors worried about the worsening economic outlook.
"The first and most important (concern) is that the tightening and slowing fiscal stimulus of the Fed will turn the US economy to the worse, and the second is that China's economy will continue to struggle," analysts note for clients.
"As we've been arguing for some time, those worries are likely to get worse over the next twelve months."
Investors will have the opportunity to review US economic momentum on Friday when the government releases GDP data for the third quarter.
ANZ analysts highlighted weak US data on durable goods, suggesting that "investment is not gaining momentum, not even with the obvious tailwind from tax cuts and the repatriation of US dollars."
"This suggests that the recovery of GDP growth through fiscal stimulus could be quite temporary," the analysts said.
In the currency markets, the euro fell after Mario Draghi, president of the European Central Bank, said that the Bank's € 2.6 trillion purchase program will end this year, and interest rates will come to an end, despite fears over monetary union after next summer could rise economic and political future.
The single currency EUR = was 0.04 percent lower at $ 1.1370.
The dollar fell 0.1 percent against the yen to JPY 112.29. The dollar index, DXY, which tracks the greenback against a basket of six major competitors, was also 0.1% lower at 96,594.
The benchmark 10-year US Treasury yield US10YT = RR rose to 3.1073 percent from its US closing price of 3.136 percent on Thursday.
Oil prices eased somewhat after having been signaled by Saudi Arabia's Energy Minister that intervention might be needed to reduce oil supplies.
US Crude CLc1 dropped 0.85 percent to $ 66.76 a barrel. Brent Crude LCOc1 fell 0.6 percent to $ 76.43 a barrel.
Spot Gold XAU = $ 1,231.75 per ounce. [GOL/]
Reporting by Andrew Galbraith; Processing of Sri Navaratnam