- Asian stocks are mildly bid amid an uptick in the S&P 500 futures.
- Shanghai Composite is reporting losses a day after China announced measures to boost consumption.
Major Asian equity indices except Shanghai Composite are reporting marginal gains, possibly tracking gains in the US index futures.
As of writing, Australia's S&P/ASX 200 is reporting 0.11% gains and stocks in South Korea are up 0.45%. Japan's Nikkei is flat-lined and stocks in New Zealand are adding 0.80%.
China unveiled measures on Tuesday to boost consumer spending, including the possible removal of restrictions on auto purchases. So far, however, that announcement has failed to put a strong bid under the Chinese stocks.
The Shanghai Composite index is currently down 0.50% at 2,887, having failed to close above the 50-day moving average (MA) on Tuesday. As now, the 50-day MA is located at 2,912.
The US stocks dropped in the overnight trade with the Dow Jones Industrial Average falling 120 points on recession fears. Notably, the US bond yield curve inversion deepened with the spread between the 10- and two-year yields falling to levels last seen in 2007.
As of writing, the futures on the S&P 500 are reporting 0.24% gains and the gains are likely providing relief to Asian investors.
The gains, however, could be short-lived if the US yield curve inversion continues, bolstering recession fears. Also, the ongoing trade dispute between the US and China will likely keep the gains, if any, under check.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.