Asia stocks set to retreat as rally loses steam

Asia stocks set to retreat as rally loses steam

Aussie shares opened a tad weaker and futures in Japan, China and Hong Kong pointed to a lower start for stocks.

Pedestrians are reflected in an electronic stock board outside a securities firm in Tokyo. (Bloomberg pic)
SYDNEY:
Asian stocks headed for small losses on Friday as the recent recovery in equities showed signs of losing steam. The euro dipped after a cautious assessment of growth from the European Central Bank.

Australian shares opened a tad weaker and futures in Japan, China and Hong Kong pointed to a lower start for stocks.

The S&P 500 Index finished Thursday little changed, with about three decliners in the benchmark for every two that rose.

Treasuries were flat. The yuan steadied ahead of a slew of China economic data due Friday.

The pound rose on reports European leaders are set to discuss issuing a declaration on the Irish backstop, which may help prospects for the Brexit deal in Britain’s fractious Parliament.

Investors have taken some comfort this week from encouraging signs in trade tensions.

Chinese importers resumed buying US soybeans and Beijing reiterated that its officials were in close contact with Washington counterparts on negotiating details of a broader deal.

Still, worries remain as China detained a second citizen of Canada for questioning and Trump administration officials signalled that Beijing will have to do more to end the tariff war.

On Thursday, the ECB kept interest rates unchanged, confirmed an end to its asset-purchase program and provided more details on its reinvestment plan.

Speaking after the decision, President Mario Draghi said the balance of risks to the euro area had moved to the downside.

Elsewhere, West Texas crude climbed toward US$53 (RM221) a barrel after Saudi Arabia was said to be planning to slash exports to the US in the coming weeks.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.