Sensex Today Live Updates : Asian equity markets dropped after Meta Platforms Inc.’s disappointing outlook raised concern on whether the industry that has powered the bull market in equities has run too far.
Equity benchmarks slid in Hong Kong, Japan and mainland China, while contracts for US stocks also pointed to declines. Australian financial markets are shut for a holiday. The yen extended declines after weakening beyond 155 per dollar for the first time in more than three decades on Wednesday, heightening the chances of intervention ahead of Bank of Japan’s decision meeting Friday.
A $250 billion exchange-traded fund tracking the Nasdaq 100 got hit after the close of regular US trading as the Facebook parent tumbled more than 15%. Meta projected second-quarter sales that were below analyst expectations and increased its spending estimates for the year.
“Meta’s not-so-upbeat outlook sent markets running for cover after-hours, which also imminently has caution spilling over for Asia markets that are already hobbled by a ‘higher for longer’ Federal Reserve and China jitters,” said Vishnu Varathan, chief economist for Asia ex-Japan at Mizuho Bank in Singapore.
In Japan, the yen depreciated to as low as 155.42 per dollar on Thursday, a new 34-year low versus the dollar. Traders will be alert for any comments from officials that suggest a higher state of readiness for intervention ahead of the Bank of Japan’s policy decision.
The BOJ is forecast to keep its interest rate settings unchanged Friday, while the currency’s plunge makes it more likely the bank will tone down its stance on keeping policy easy.
Japan’s weak currency is a “big problem,” Japan Airlines Co. Chief Executive Officer Mitsuko Tottori said in a group interview, adding that a stronger rate than the current level of around ¥155 to the dollar would be better.
In the corporate world, shares of South Korea’s SK Hynix Inc. plunged even after the company said it expects a full recovery in the memory market after AI demand spurred the chipmaker to log its fastest pace of revenue expansion since at least 2010.
SK Hynix’s stock was sold “on the news after its big gain on Wednesday and Meta’s 15% fall is also denting the investor sentiment,” said Marcello Seongsoo Ahn, a portfolio manager at Quad Investment Management Co. in Seoul.
BHP Group Ltd. has approached Anglo American Plc about buying the 107-year-old company in a move that offers to spark the biggest shakeup of the global mining industry in over a decade.
Elsewhere, oil held a modest decline, with a risk-off tone in broader markets countering a drawdown in US stockpiles. Gold was little changed.
Treasuries opened little changed in Asia after yields rose on Wednesday.
Sensex Today Live : From Meta and Tesla shares to Treasury yields, seven key things may impact stocks today in trade today
Sensex Today Live : The Indian stock market indices, Sensex and Nifty 50, are predicted to start off on a lower note on Thursday, influenced by the weak performance of global counterparts. Asian markets were seen trading in the negative territory, while the US stock markets exhibited a mixed trend overnight. This was primarily due to a slump in technology stocks as investors responded to Meta Platforms’ results and the surge in Treasury yields.
On Wednesday, the Indian stock market indices ended positively for the fourth day in a row, propelled by gains in certain heavyweight stocks amidst generally favorable global cues. The Sensex rose by 114.49 points, or 0.16%, to close at 73,852.94, while the Nifty 50 increased by 34.40 points, or 0.15%, to settle at 22,402.40.
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd, expressed optimism about the continuation of this bullish trend in the markets. He further noted that the significant drop in India’s VIX at the onset of elections suggests a decrease in market volatility in the near future. He also mentioned that niche sectors are expected to maintain their momentum. (Read the full story here.)
Sensex Today Live : Muted global peers, Gift Nifty, signal slow start for Indian markets
Sensex Today Live : Indian markets were poised to open on a muted note, dragged down by faltering sentiment in global peers, along with mixed results posted by domestic companies in the March quarter.
The Gift Nifty futures was trading at 22,360.50, around 40 points below Nifity 50’s Wednesday’s close of 22,402.40, indicating a slow start to trading on Thursday.
Asian stocks fell on Thursday as disappointing earnings forecasts from Facebook parent Meta Platforms hammered tech shares, while the yen’s slump past 155 per dollar for the first time since 1990 raised the spectre of intervention from Tokyo.
A 15% dive in shares of Meta in extended trading after the Instagram parent forecast lighter-than-expected current quarter revenue and higher expenses soured the mood, sparking a sell-off in U.S. tech and tech-related stocks.
The predictable hit to Asian tech stocks took MSCI’s broadest index of Asia-Pacific shares outside Japan down 0.7%.
Japan’s Nikkei slid 1.3%, while China stocks also fell, with the blue-chip CSI300 index down 0.3% and Hong Kong’s Hang Seng Index 0.5% lower.
In an earnings-packed week, the tech bellwethers are in the spotlight, with Alphabet, Microsoft and Intel due to report later on Thursday.
Beyond corporate earnings, investor focus will be on the first quarter U.S. gross domestic product data on Thursday and personal consumption expenditures, the Fed’s preferred inflation gauge, for March on Friday.
A hotter-than-expected consumer price inflation report for March had pushed back expectations of when the Fed will begin cutting interest rates, with markets pricing in a 70% chance of September being the starting point, CME FedWatch Tool showed.
Traders are pricing in 43 basis points of easing in 2024, drastically lower than the 150 basis points they anticipated at the start of this year.
In commodities, oil prices eased a bit as concerns about a potential slowdown in the U.S. economy outweighed worries over the risk of an expanding conflict in the Middle East.
U.S. crude fell 0.08% to $82.74 per barrel and Brent was at $87.99, down 0.03% on the day. Spot gold added 0.2% to $2,320.32 an ounce.
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