Asian Stocks in Tight Range as Global Rally Stalls: Markets Wrap

(Bloomberg) — Asian stocks swung between minor gains and losses after losses on Wall Street as signs of fatigue crept into the AI-fueled equity rally.

Gauges in Japan edged up while stocks were flat in Hong Kong, which is returning to normalcy after Super Typhoon Ragasa. Equity-index futures for the US rose 0.2% after key gauges dropped for a second day. Copper remained near the highest in more than a year after Freeport-McMoRan Inc. declared force majeure on contracted supplies from its Indonesia mine.

The dollar held its gains while oil steadied following its biggest jump since July. Treasuries gained slightly with the yield on the 10-year falling one basis point to 4.13%. Investors in Asia will also be focused on the sale of 40-year Japanese government bonds Thursday.

The retreat on Wall Street signaled a breather for an AI-driven surge that has already lifted the S&P 500 about 12% this year as investors rushed to companies like Nvidia Corp. and Alibaba Group Holding Ltd. That momentum appeared to dissipate Wednesday as traders awaited fresh catalysts amid risks stemming from a labor-market slowdown to sticky inflation.

“Timeout called,” said Craig Johnson at Piper Sandler. “The trend of strong gains isn’t over yet. However, the short-term risk-reward profile is becoming more compressed as stocks extend higher while underlying momentum fades.”

Policy risks were also weighing on markets. The administration launched investigations into imports of robotics, industrial machinery and medical devices, a sign President Donald Trump may expand his tariff regime.

South Korea’s prime minister warned that major investment projects in the US will stall until visa issues are resolved, urging Washington to reassure Koreans worried about detentions.

Elsewhere, Federal Reserve Bank of San Francisco President Mary Daly said further interest-rate cuts are likely needed, but the US central bank should approach those with caution.

While the S&P 500 has defied September’s gloomy reputation as the worst month for equity returns, the gauge failed to gain traction on Wednesday, sparking concerns the rally has hit an air pocket.

Corporate News:

Intel Corp. has approached Apple Inc. about securing an investment in the ailing chipmaker, according to people familiar with the matter. Oracle Corp. sold $18 billion US investment-grade bonds on Wednesday, the market’s second-largest deal this year, as the software maker ramps up its spending to meet the needs of the artificial intelligence boom. The US lowered tariffs on auto imports from the European Union to 15% retroactive to Aug. 1, cementing terms of the framework trade agreement the two sides struck almost two months ago. Chery Automobile Co., China’s biggest car exporter, rose in its Hong Kong trading debut after raising HK$9.1 billion ($1.2 billion) in an initial public offering. Walt Disney Co. is preparing for President Donald Trump to retaliate against the company for putting late-night host Jimmy Kimmel back on the air Tuesday night. Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.2% as of 10:57 a.m. Tokyo time Japan’s Topix rose 0.6% Australia’s S&P/ASX 200 was little changed Hong Kong’s Hang Seng was little changed The Shanghai Composite was little changed Euro Stoxx 50 futures were little changed Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1745 The Japanese yen was little changed at 148.76 per dollar The offshore yuan was little changed at 7.1339 per dollar Cryptocurrencies

Bitcoin fell 0.8% to $112,649.2 Ether fell 1.6% to $4,102.99 Bonds

The yield on 10-year Treasuries declined one basis point to 4.14% Japan’s 10-year yield was unchanged at 1.640% Australia’s 10-year yield advanced four basis points to 4.32% Commodities

West Texas Intermediate crude fell 0.5% to $64.68 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.

–With assistance from Richard Henderson.

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