Asian Equities Decline, Snapping Four-Day Rally
Stocks in Asia fell on Thursday for the first time in five sessions as the rally on Wall Street sparked by US-China trade talks showed signs of exhaustion.
Japanese and Australian stocks edged lower, while a gauge of US-listed Chinese companies climbed 1.2% on Wednesday. Tencent Holdings Ltd.’s revenue grew at its fastest pace in more than three years.
US futures were slightly lower after the S&P 500 rose 0.1%, while the Nasdaq 100 gained 0.5%, helped along by an advance for Nvidia Corp that wiped 2025 losses for the chipmaker.
An index of the dollar rose Wednesday, reversing selling pressure earlier in the session as Bloomberg News reported the US is not working to include currency policy pledges in trade accords. Gold steadied on Thursday after falling 2.3% to a one-month low in its previous session. Oil fell for a second day after a government report showed US crude inventories rose the most in two months.
The moves reflected a note of caution to a week marked by a sharp rebound in risk assets fueled by progress in trade talks and economic resilience. The nascent US-China trade truce, a UK pact and high-profile Gulf deals have reassured investors, yet lurking in the background is the worry that stocks get so extended that they’re vulnerable to surprises.
“As trade tensions ease, investors are pivoting back to fundamentals, but they may not like what they see,” said Mark Hackett at Nationwide. “The market has raced from oversold to overbought in record time. That limits near-term upside unless we see a clear re-acceleration in growth.”
Source: Bloomberg
