Asia stocks to drop on tech sell-off; dollar flat

Asia stocks to drop on tech sell-off; dollar flat
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SYDNEY (May 21): Asian stocks are set to decline Tuesday after Washington’s moves against Huawei Technologies Co. sank U.S. technology shares and stoked trade jitters. The dollar stabilized.

Futures pointed to losses across the region. Companies crucial to the global supply chain will be closely watched after the White House blacklisted the Chinese telecom giant. 

S&P 500 Index futures were higher in early Asian trading after the benchmark dropped for the second straight session, with semiconductor stocks among the biggest laggards. The tech-heavy Nasdaq 100 Index saw its biggest decline in a week. Ten-year

Treasury yields rose before a slew of U.S. data this week as well as Federal Reserve policy-meeting minutes on Wednesday. Markets remain on edge as the trade war develops, with the impact of President Donald Trump’s threats to choke Huawei’s supply chain hitting some of the biggest component-makers. Trump
said in an interview he was “very happy” with the trade war and that China wouldn’t become the world’s top superpower under his watch. 

In response, China could retaliate as Chinese companies’ “legitimate rights and interests are being undermined,” Zhang Ming, the nation’s ambassador to the European Union said.

Elsewhere, software and semiconductor shares also helped pull European stocks lower. Crude fluctuated before ending higher.

Here are some notable events coming up:

* On Tuesday, Bank of England Governor Mark Carney testifies to Parliament about the May inflation report on Tuesday, and Reserve Bank of Australia Governor Philip Lowe speaks in Brisbane.

* The Fed minutes of its FOMC April 30-May 1 policy meeting will be released Wednesday.

* Counting of votes from the Indian general elections takes place Thursday as Prime Minister Narendra Modi attempts to secure a second term.

* ECB President Mario Draghi speaks in Frankfurt on Wednesday.

* The European Parliament holds continent-wide elections May 23-26.

* On Thursday, the ECB publishes its account of the April monetary policy decision.

And these are the main moves in markets:

Stocks

* Nikkei 225 futures fell 0.6% in Singapore.

* Australia’s S&P/ASX 200 Index futures fell 0.6%.

* FTSE China A50 futures dropped 0.8%.

* Hong Kong’s Hang Seng Index futures lost 0.6%. 

* S&P 500 futures rose 0.2%. The S&P 500 fell 0.7%. The Nasdaq 100 dropped 1.7%.

* The Stoxx Europe 600 Index fell 1.1%, its biggest drop in a week.

Currencies

* The yen was steady at 110.06 per dollar. 

* The yuan was stable at 6.9394 per dollar.

* Bloomberg Dollar Spot Index rose 0.1%.

* The euro held at $1.1168.

Bonds

* The yield on 10-year Treasuries rose about two basis points to 2.42%.

* Australia’s 10-year bond yield held at 1.68%.

Commodities

* West Texas Intermediate crude gained 0.3% to $63.30 a barrel.

* Gold was little changed at $1,277.61 an ounce.