Shares gained in Japan, but slipped in Australia and South Korea. US contracts advanced in Asia after the S&P 500 closed up 0.2% and the Nasdaq Composite rose to a record. In late US trading, Alphabet Inc. climbed more than 5% as the Google parent’s earnings beat estimates, while Advanced Micro Devices Inc. sank 7% amid a lackluster revenue forecast.
Treasury yields edged lower, while a Bloomberg gauge of the dollar’s strength snapped a three-day advance. Gold hit a fresh record early on Wednesday as Bitcoin traded near its all-time high.
In addition to risks posed by US events, traders in Asia are also preparing for potential market moves following the Bank of Japan’s decision on Thursday and a meeting by China’s top legislative body to be held Nov. 4-8, where further fiscal stimulus may be announced. Asia’s regional equity benchmark is set for its worst monthly performance in a year.
Investors “paid close attention and responded instantaneously to companies’ earnings reports in overnight trading,” said Michael McCarthy, market strategist at Moomoo Australia. “However, support for bonds, gold and crypto currencies point to risk-reducing diversification ahead of key market risk events next week.”
Just about a week away from the Fed decision, data showed US job openings fell to the lowest since early 2021. The figures run counter to the September employment report that pointed to a still-strong labor market, which prompted traders to trim bets on another big rate cut. A separate reading showed consumer confidence hit the highest since the start of the year.Treasuries are on track for their worst month in more than two years amid signs of economic strength, posturing for the election and heavy supply of new notes and bonds. Oil was steady after losing more than 6% in the previous two sessions on easing concerns the conflict in the Middle East will affect supply. In other key data, Australia’s core inflation remained elevated last quarter, reinforcing the Reserve Bank’s view that price pressures will take time to dissipate. The yen advanced after a three-day decline.