The broader Hang Seng index in Hong Kong slipped 0.15%. Mainland Chinese stocks were lower by the afternoon, with the Shanghai composite shedding 0.54% while the Shenzhen component declined 0.653%.
South Korea’s Kospi dipped 0.32%. Australia shares declined as the S&P/ASX 200 fell 0.33%.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.01%. Australian stocks dropped 0.19%, and shares in China fell 0.08%. Stocks in Tokyo edged 0.23% lower.
India Covid situation
The Nifty 50 in India bucked the overall trend regionally and was up 0.44% in Tuesday morning trade while the BSE Sensex also gained 0.41%.
Investors continued to monitor India’s Covid situation as the country continues to battle a second wave that is pushing its health-care system to the brink.
Analysts said some investors may be taking profits on equities, but sentiment remains positive due to rising coronavirus vaccination rates in many countries.
Sentiment for equities in many markets has improved steadily this month due to expectations that rising vaccination rates will allow more economies to resume normal activity.
However, one area of concern is India, which is struggling with a surge of coronavirus infections that has overwhelmed its healthcare system.
Many investors stuck to the sidelines ahead of the Fed’s policy meeting ending on Wednesday, where the U.S. central bank is expected to confirm that it will maintain its easy monetary policy to bolster the economy.
· Japanese shares dip as earnings fall short of investor expectations
Japanese shares inched lower on Tuesday as a slew of corporate earnings failed to meet investors’ high expectations for strong profit recovery and as the country struggles with containing the COVID-19 pandemic.
The Nikkei share average fell 0.46% to 28,991.89, while the broader Topix shed 0.76% to 1,903.55. The market did not react to the Bank of Japan’s widely-expected decision of keeping policy unchanged.
Earnings have proved to be a drag on the market after the Nikkei had rallied to a three-decade high earlier this year on hopes of economic normalisation in the financial year that began in April.
Japan’s unstable health conditions are also dampening the mood after the government was forced to declare its third state of emergency last week, only one month after it ended the previous one while vaccine rollouts progressed at a snail’s pace.
· Stock futures are flat after S&P 500 and Nasdaq close at record highs
Stock futures held steady in overnight trading on Monday as investors braced for another batch of corporate earnings.
Futures on the Dow Jones Industrial Average and S&P 500 futures were little changed. Nasdaq 100 futures inched up 0.1%.
European stocks were muted Tuesday morning as global markets prepare for the U.S. Federal Reserve’s two-day meeting, which begins today, and more earnings.
The pan-European Stoxx 600 hovered around the flatline in early trade, with oil and gas and travel stocks climbing 0.8% while financial services dropped 0.7%.
European markets look set to follow their global counterparts lower: Shares in Asia-Pacific were lower Tuesday morning as investors anticipated the Bank of Japan’s latest interest rate decision.
Investors will be digesting the latest earnings from HSBC, Europe’s largest lender by assets, which reported first-quarter pre-tax profits that beat estimates but its revenue was down.
It was a big day for earnings in Europe with BP, UBS, ABB, Schneider Electric, Novartis and Whitbread all reporting.
· UBS first-quarter profit up 14%, but CEO ‘very disappointed’ with hit from Archegos scandal
UBS reported on Tuesday net income of $1.8 billion for the first quarter of 2021, as it revealed a hit to earnings from the scandal involving Archegos Capital.
The Swiss bank said revenues were $774 million lower as a result of the default by the Archegos hedge fund, which collapsed last month after taking on too much risk. The U.S.-based family office was a client of UBS’ prime brokerage business.
UBS said Tuesday it had exited all exposure to Archegos and any related losses in the second quarter would be “immaterial” for the bank.
· BP beats first-quarter estimates on stronger commodity prices, improving oil demand
BP’s first-quarter underlying replacement cost profit, used as a proxy for net profit, came in at $2.6 billion. That compared with a profit of $115 million in the fourth quarter and $791 million for the first quarter of 2020.
Analysts at Refinitiv had expected BP to report first-quarter profit of $1.4 billion.
Shares of BP are up more than 16% year-to-date.
· Bond traders are also closely watching an auction of $62-billion of seven-year U.S. Treasuries later on Tuesday.
The Treasury saw very weak demand at a seven-year debt auction in February, which sparked a brutal market selloff across the globe. The notes also saw tepid, although improved, demand in March.
Reference: CNBC, Reuters
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