Asian Stocks Dip After U.S. Record Ahead of FOMC: Markets Wrap

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(Bloomberg) — Most Asian stocks slipped in early trading Tuesday and U.S. futures edged higher as traders await a Federal Reserve meeting that is expected to leave policy exceptionally loose despite robust growth.

Indexes dipped in Australia, South Korea and Japan. U.S. contracts were in the green after solid corporate earnings helped the S&P 500 Index notch another record, with most of the main 11 industry groups gaining. Tesla Inc. shares slipped in after-hours trade after the firm reported a profits beat but left the multiyear outlook for growth in deliveries unchanged.

The U.S. 10-year Treasury yield held around its 50-day moving average, well below last month’s peaks, and the dollar was steady. Copper, seen as a barometer of growth, extended gains that have taken prices to the highest in almost a decade.

© Bloomberg Billions flood into short-dated U.S. Treasury funds with duration out of favor

While emerging economies from India to Brazil are grappling with a Covid-19 surge or renewed curbs, the developed world is on a firmer recovery path with a faster pace of vaccinations. U.S. data this week are expected to show growth accelerated to 6.8% annualized in the first quarter, and robust consumer demand. These reports aren’t shifting the central bank’s highly accommodative stance, with the Fed expected to keep rates on hold and asset purchases unchanged at this week’s meeting.

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“I am a bull,” Hilary Kramer, Kramer Capital Research CIO, told Bloomberg TV. The Fed Chairman “is going to make sure he keeps rates low, he’s going to lag behind rather than trying to get ahead of inflation.”

More than three-quarters of the S&P 500 companies that have reported results so far have beaten analysts’ estimates, according to data compiled by Bloomberg. Amazon Inc., Facebook Inc. and Apple Inc. are due to report this week.

Oil steadied as traders consider the risks to demand from India after the nation reported a million new coronavirus cases in three days.

Here are some key events to watch this week:

Bloomberg Live hosts the Bloomberg Green Summit Monday through April 27Bank of Japan rate decision and Governor Haruhiko Kuroda briefing TuesdayFed Chair Jerome Powell holds a press conference Wednesday following the Fed meetingJoe Biden makes his first address as president to a joint session of Congress WednesdayU.S. GDP is forecast to show growth strengthened in the first quarter, bolstered by government stimulus Thursday

These are some of the main moves in markets:

Stocks

S&P 500 futures were up less than 0.1% as of 9:32 a.m. in Tokyo. The index rose 0.2%Japan’s Topix Index was down 0.4%South Korea’s Kospi Index edged down 0.2%Australia’s S&P/ASX 200 Index was 0.3% lowerHang Seng Index futures fell 0.2%

Currencies

The yen was at 108.19 per dollar, down 0.1%The offshore yuan was at 6.4746 per dollarThe Bloomberg Dollar Spot Index was steadyThe euro was at $1.2078, down 0.1%

Bonds

The yield on 10-year Treasuries was steady at 1.57%Australia’s 10-year yield was one basis point lower at 1.74%

Commodities

West Texas Intermediate crude was at $61.97 a barrelGold was steady at $1,780.84 an ounce

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