Asian shares wobble as Alphabet earnings miss drags Wall Street futures lower
SPY•Asian shares traded erratically after Alphabet shares fell 10% in after-hours trading, dragging Nasdaq futures down 0.9%; Microsoft rose 3% after beating forecasts. The Fed held rates steady, while investors awaited Amazon and Intel earnings and the ECB’s decision.
1. Mixed moves across Asia
Shares traded erratically in Asia as investors reacted to mixed earnings from technology companies. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.7%, while Japan’s Nikkei was last up 1%; China’s CSI 300 fell 0.8% and Hong Kong’s Hang Seng rose 0.5%.
2. Tech earnings in focus
Alphabet shares fell 10% in after-hours trading after hefty cash burn, wiping nearly $400 billion off its market value and sending Nasdaq futures down 0.9%. Microsoft rose 3% after reporting better-than-expected cash flows. Samsung Electronics shares fell 4% after the company reported record earnings but gave no plans to boost shareholder returns; SK Hynix rose 4.6%.
3. Rates and oil watched
The Federal Reserve held rates steady, though two committee members voted for a hike. The two-year Treasury yield fell about 5 basis points to 4.6871%, while markets were still pricing an 80% chance of a rate rise in December. Brent crude fell 1.2% to $113.91 a barrel. Investors were also awaiting US inflation and GDP data, Amazon and Intel earnings, and the European Central Bank’s decision.
