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By Swati Pandey
SYDNEY (Reuters) – Asian stocks should post a modest rebound on Monday, though sentiment remains fragile, with declines rising after sharp declines in global financial markets last week due to growing concerns over stocks. corporate profits and global growth.
E-Mini futures for the S & P 500 and Dow minis jumped by 0.4% each in early Asian trade, while Nikkei futures were also in the dark.
New Zealand equities <.nz50> opened lower while Australian stocks <.axjo> increased by 0.7 percent.
The largest MSCI index of Asia Pacific shares outside Japan <.miapj0000pus> 0.2 percent higher after slipping nearly 4 percent last week.
Financial investors were frightened after the heavy losses suffered by major stock indexes last week with negative returns for the year.
The intensification of the relationship between China and the United States has hurt sentiment. trade dispute related to concerns about the profits of US companies, the misfortunes of the Italian budget and the Federal Reserve rate hike.
The S & P 500 <.spx> has reached its lowest level since early May Friday and has flirted with the territory of the correction, under the pressure of heavy losses in technologies and Internet shares.
"The Q3 season's earnings have been disappointing, the US economy's growth and corporate profits are likely to peak, the indicators most monitored by the Federal Reserve suggest that tightening will continue and deficits Americans are unsustainable, "the group said in a statement.
"And while trade between the two countries has improved in recent weeks, the path to relaxation or resolution remains unclear."
Analysts expect the S & P500 to rebound from the current 2,650, although any increases will likely be limited.
Bad economic indicators from China recently should also weigh on investor sentiment.
Data released over the weekend show that profit growth in China's industrial enterprises slowed for the fifth consecutive month in September, as sales of raw materials and manufactured goods declined further.
The Australian dollar, which is often traded against the Chinese yuan in the form of liquid proxy, changed little in early trading, to 0.7095 dollar. The currency fell 0.4% last week.
The Japanese yen, a safe-haven asset, benefited from massive sales of riskier assets, as unwinded investors were exposed to transaction risks. It gained 0.6% last week and was stable at 111.89 for a dollar.
During the week, investors will closely watch the announcement of monetary policy on Wednesday by the Bank of Japan.
The dollar index <.dxy> was a little firmer at 96.407 after gaining 0.7 percent last week.
The euro has been close to lows of more than two months to maintain at $ 1,1389. Investors breathed a sigh of relief after German Chancellor Angela Merkel's coalition partners left her conservatives until next year to get more political results.
However, there were concerns about his future after both parties suffered in Sunday's regional elections.
In the commodities sector, oil rose slightly, with a barrel of US oil rising 11 cents to 67.7 dollars a barrel and Brent 17 cents to 77.79 dollars.
The gold spot has been barely changed to 1233.11 oz.
(Edited by Shri Navaratnam)
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