Asia Stocks Fall as S&P500 Slip From Record

20/04/2021 Asia stock markets fell on Tuesday after weakness in the technology sector, with investors weighing corporate earnings and recent spikes in virus cases. Tesla Inc. slumped after concerns about a fatal crash of one of its electric vehicles. Shares rose in China, dropped in Hong Kong and Japan. Tencent currently trading 0.88% under the watermark. Treasury yields traded around 1.6%, well off recent highs, and the dollar dipped.

Oil prices rose on as a weaker U.S. dollar supported commodities and on expectations that crude inventories fell in the United States. Brent crude futures for June delivery rose by 67cents, or 1.01%, to $67.71 a barrel.

On Monday the local bourse started the last week of the month of April on the backfoot weighed down by losses in Naspers and Prosus. The stronger rand played a role in weakness in some rand hedges. The JSE/All-share lost 0.88% to 68,094.28 points and the Top-40 0.91%. Retailers fell 1.32% and financials 0.17%, while both precious metals and industrials lost 1.93% and 1.16% respectively. Rand up 0.2% to 14.20/US$, Yield on 10-year govt rand bonds rose 1.40bps to 9.08%

Here are some key events to watch this week:
• Apple’s first product unveiling of the year on Tuesday.
• Reserve Bank of Australia releases minutes of its policy meeting on Tuesday.
NEWS:
• Rand Extends Advance Amid Bond Inflows: Inside South Africa
• South Africa Plans 100 Billion-Rand Expansion of Durban Port
• Coca-Cola Announces Plans for IPO of Africa Unit
EQUITY PREVIEW:
• Truworths Names Emanuel Cristaudo as Chief Financial Officer
• Imperial Selling Shipping Unit to Hidrovias for as Much as $100m
MEDIA SUMMARIES:
• Mail & Guardian: Pfizer backs down over ‘unreasonable’ terms in South Africa vaccine deal
• News24: Only 53% of SA’s senior municipal managers meet minimum competency levels – Khumbudzo Ntshavheni
• Fin24: German court still assessing Markus Jooste‘s likelihood of conviction before main trial starts
EARNINGS:
• PSG Group Ltd. (PSG SJ)
ECONOMIC DATA:
• 9am: Feb. Leading Indicator, prior 117.5

EU/UK/US
European markets retreated from record highs as a weaker open on Wall Street and rallying currencies offset optimism about a solid start to the earnings season. The pan-European STOXX 600 index closed little changed but fell about 0.3% from all-time highs hit earlier on Monday. The FTSE100 slipped 0.28%, while the DAX gave up 0.59% at the close. First-quarter earnings for companies listed on the STOXX 600 are expected to jump more than 55% after a near 40% slide in the year-earlier quarter, according to Refinitiv IBES data. Italy’s Juventus surged 18% after top European football clubs including Juventus FC and Manchester United announced a breakaway competition to rival the UEFA Champions League.

Wall Street closed in the red on Monday as traders took profits in bank stocks and awaited more earnings from several big-name US firms. The Dow was down 0.36%, while the S&P 500 was 0.53% weaker and the Nasdaq came out the gate 0.98% softer. The biggest gainer in the S&P 500 on Monday was Albemarle, which closed 3.6% higher after Evercore ISI upgraded the lithium producer to outperform. Consumer discretionary and information technology sectors led losses. All three (Dow, S&P500, Nasdaq), U.S main Index futures tick up after tech stocks dragged indexes below record levels.

ASIA
Asian stock markets mixed on Tuesday, led by a stronger Chinese opening and shaking off the initial drag from tech-driven Wall Street losses. MSCI’s ex. Japan gained 0.28%, swinging into positive territory after Chinese blue chips rose 0.13%. Japan’s Nikkei dropped 2.09%, as the country continues to grapple with a resurgence in COVID cases. Australia on the backfoot 0.68, while Hong Kong remains flat 0.01%. Shanghai above waters 0.38%. Chinese food delivery giant Meituan’s shares rose 1.59% after the company said it had raised a huge $9.98 billion through an equity and convertible bond sale.