Stocks stalled Tuesday amid mixed earnings results and deal chatter. The Dow Jones Industrial Average was down 4 points, or less than 0.1%, to 23541 in recent trading. The S&P 500 declined less than 0.1%, while the Nasdaq Composite shed 0.3%.
Shares in Asia were flat on Thursday, with investors on the sidelines ahead of the U.S. Federal Reserve’s annual Jackson Hole meeting, set to start later in the trading day. The Nikkei Stock Average was up 0.04%, recovering from earlier declines in the session. Hong Kong’s Hang Seng Index was flat, the Shanghai Composite Index was 1.1% lower and the South Korean Kospi added 0.1%.
Stocks in Asia were mixed on Monday, in a largely muted reaction to a failed coup against the Turkish government, while data out of China showed slowing home price gains. Australia’s S&P ASX 200 was up 0.5% and the Hang Seng Index was up 0.2%. But the Shanghai Composite Index fell 0.1% and South Korea’s Kospi was flat.
Asian equity markets staged further gains on Wednesday, boosted by investor expectations that Japan may consider an aggressive form of policy easing to jumpstart its economy.But those gains quickly moderated after the Japanese government denied the possibility of using “helicopter money,” a measure that would involve the central bank directly financing government spending or tax cuts.
The British pound continued to slide against the U.S. dollar and the yen moved higher in early Asian trading on Wednesday amid the continuing fallout from the U.K.’s vote last month to leave the European Union, while China’s authorities guided the yuan to its weakest level in almost six years. The U.K. currency, also known as sterling, fell 1.4% to 1.2837 and is currently trading at the lowest level in 31 years.
Brexit was a major shock to the global financial market and the global economy. The full impact is still to unfold, as the exiting procedure could be complicated and could take multi-year negotiations. In our assessment, the near-term economic impact of Brexit on China is likely to be limited, but it could have important implications on China’s exchange rate policy operation, the strategy in capital account liberalization, and monetary policy operation.