In Asian Equity Markets the Nikkei 225 in Japan fell 0.6% as shares of index heavyweight and robot maker Fanuc fell 1.82%. The Topix index also declined 0.88%. Core machinery orders in the country fell for the second consecutive month in August, according to Cabinet Office data on Thursday. In South Korea, the Kospi shed 1.28% as shares of chipmaker SK Hynix dropped 2.97%. Australia’s S&P/ASX 200 slipped 0.13%. Markets in Taiwan are closed on Thursday for a holiday.
In Currency Markets the U.S. dollar rose to a one-week high against the safe-haven Japanese yen on Wednesday on revived hopes for an amicable resolution to the U.S.-Chinese trade war, after a report that China is still open to agreeing to a partial trade deal with the United States. Against the yen, which tends to strengthen during times of geopolitical stress due to Japan’s standing as the world’s biggest creditor, the greenback was 0.43% higher at 107.53 yen. The greenback climbed 0.3% against the Swiss franc, another currency investors deem a safe haven.
In Commodities Markets oil futures were mixed on Wednesday as a Turkey-launched offensive in Syria and hopes of progress in ending the U.S.-China trade war supported oil, but a build in U.S. crude inventories held prices back. Brent crude settled at $58.32 a barrel, up 8 cents, while U.S. West Texas Intermediate crude settled at $52.59 a barrel, down 4 cents. Later, prices fell from settlement levels after Chinese officials said Beijing has lowered expectations for progress at the trade talks this week.
In US Equity Markets indices rose on Wednesday on hopes of progress in U.S.-China trade talks, though stocks pared gains late after Chinese officials said Beijing had lowered expectations for negotiations this week. The S&P 500 gained 0.91%, to 2,919.4 and the Nasdaq Composite rose 1.02%, to 7,903.74. Microsoft led the Dow’s gain, advancing 1.9%, while Johnson & Johnson was the blue-chip index’s sole decliner. The drugmaker’s shares dropped 2.0% after a jury awarded $8 billion in punitive damages in a case surrounding its antipsychotic drug Risperdal.
In Bond Markets U.S. Treasury yields rose on Wednesday, a day that saw a flood of supply and on optimism for progress in U.S.-China trade negotiations that begin in Washington on Thursday. On Wednesday, the market absorbed a $24 billion reopening of 10-year notes and on Thursday a $16 billion reopening of 30-year bonds was scheduled. The benchmark 10-year yield rose 4.5 basis points on Wednesday to 1.584%, after the auction was met with slightly soft demand.