By Imani Moise
NEW YORK, Sept 23 (Reuters) - Asian stocks opened lower on
Thursday, tracking a sharply lower Wall Street session amid
fresh concerns that the global economic recovery is running out
of steam.
U.S. stocks fell on Wednesday after data showed business
activity slowed in September, with gains at factories more than
offset by a retreat at services industries. Investors now await weekly data due later on Thursday, which
is expected to show U.S. jobless claims fell slightly but
remained elevated, indicating the world's largest economy is
still far from recovering.
The data comes after a Federal Reserve official said it will
be hard to boost employment without further government
stimulus. However, with congress locked in a stalemate, analysts see
immediate fiscal support as unlikely.
"Equity sentiment remained positive in Europe but quickly
soured in the U.S. as Fed speakers urged further fiscal support
for the economy," Westpac Institutional Bank analysts said in a
note.
In Asia, E-mini futures for the S&P 500 EScv1 fell 0.11%,
Australia's S&P/ASX 200 .AXJO lost 1.6% and Japan's Nikkei 225
.N225 declined 0.56%. Hong Kong's Hang Seng index futures
.HSI HSIc1 dropped 0.92%.
Additionally, a second wave of coronavirus infections in
Europe threatened the economic recovery in that region pushing
equities lower and propping up the safe-haven the safe haven
dollar.
On Wednesday, the Dow Jones Industrial Average .DJI fell
1.92%, the S&P 500 .SPX lost 2.37% and the Nasdaq Composite
.IXIC dropped 3.02%.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS closed 0.04% higher, while Japan's Nikkei
.N225 %.
Strength in the dollar, which rallied to a two-month high on
Wednesday, weighed on gold prices.
The dollar index =USD rose 0.393%, while spot gold XAU=
dropped 0.3% to a two-month low at $1,858.39 an ounce.
Oil prices advanced slightly after reports that inventories
were down across the U.S. but gains were muted by uncertainty
about demand going forward as travel remains limited due to the
pandemic.
Brent crude LCOc1 rose 5 cents to settle at $41.77 a
barrel. U.S. West Texas Intermediate crude CLc1 gained 13
cents to settle at $39.93 a barrel.
The yield on Treasuries Benchmark 10-year US10YT=RR rose
1.3 basis points to 0.677% on Wednesday while the 30-year bond
yield US30YT=RR rose 1.2 basis points to 1.427%.
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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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