Asian stocks rose while disappointing Netflix earnings results and Tesla earnings results pushed U.S. futures stocks lower.
Asian stock rise was mixed with cautious trading Thursday as U.S. stock futures slipped after disappointing Netflix earnings results and Tesla earnings results. Stocks fluctuated in Japan and fell in South Korea, while Australia’s advanced. A reprieve from a two-day slide in Hong Kong may be in store, with equity futures earlier pointing to a small gain.
Update on U.S. futures stocks
U.S. futures stocks and NASDAQ 100 ticked lower in Asia after there was declined of 8.26% in postmarket trading as Netflix earnings’ results were lower than the estimates and its third-quarter forecast fell short. Tesla earnings’ results was also disappointing as it fell 4.19% after profitability shrank in the second quarter, a sign the electric-vehicle maker’s margins are being squeezed. The U.S. futures stocks rose for a third day and the tech-heavy NASDAQ 100 ended marginally lower on Wednesday.
Asia stocks rise
Meanwhile, Asia stocks rise was bit higher with China’s yuan rising after authorities tweaked cross border financing rules and major state owned banks were seen selling dollars in moves analysts said were designed to shore up the currency.
Asia stocks have been under pressure in recent weeks as soft economic data weighed on sentiment, with investors waiting for meaningful stimulus to jump start the country’s stuttering post-pandemic recovery.
On Thursday, Asia stocks rise was seen with the Shanghai Composite Index (.SSEC) 0.1% higher, while Hong Kong’s Hang Seng Index (.HSI) gained 0.3%.
China on Wednesday pledged to make the private economy “bigger, better and stronger” with a series of policy measures designed to help private business.
The Bank of Japan Governor Kazuo Ueda said this week that there was still some distance to sustainably and stably achieving the central bank’s 2% inflation target, dousing speculation of a hawkish policy shift next week.
Markets seem a lot more certain of the Federal Reserve’s next steps, with traders expecting a 25 basis point hike but no more after that.
Overnight, the Dow Jones Industrial Average and U.S. future stocks rose modestly, with the blue-chip Dow registering its eighth straight day of gains.
Low earnings results
Netflix earnings results was disappointing on Wednesday with second-quarter revenue that fell short of analyst estimates, while Tesla’s earnings’ results were no different. Tesla (TSLA.O) reported quarterly automotive gross margin in line with Wall Street estimates, though it was a far cry from a year earlier.
Tesla CEO Elon Musk signaled that he would cut prices again on electric vehicles even as his all-out price war on automaker rivals squeezes the company’s own margins.
Investors will watch out for earnings results from Taiwanese chipmaker TSMC (2330.TW) later in the day.
Currency update
The Australian dollar rose 0.86% to $0.683 after strong domestic jobs data.
The Japanese yen strengthened 0.32% to 139.23 per dollar, while the dollar index, which measures U.S. currency against six rivals, eased 0.209%.
Other market
In commodities, Chicago wheat futures rose 1.4% to hit a three-week high on growing expectations that an attack on Ukrainian ports after Russia’s withdrawal from a Black Sea export deal would have a longer-term impact on global supply.
U.S. crude fell 0.11% to $75.27 per barrel and Brent was at $79.62, up 0.2% on the day.
Nearing close stock update
- In regular trading Wednesday, Apple Inc. advanced after its efforts to build AI tools.
- Goldman Sachs Group Inc. ended in the green even after its profit slump stood in contrast to beats earlier in the week from peer investment firms.
- Oil had fallen.
- Gold was little changed.
