Asian equities rebound but sentiment remains fragile

SYDNEY (Reuters) – Asian stocks rebounded after last week's sharp declines on Monday, though confidence has remained fragile amid rising concerns over corporate profits and slowing global economic growth.

The general sentiment of the markets has been affected by a series of negative factors resulting from the intensification of the relationship between China and the United States. trade dispute related to concerns about the profits of US companies, the misfortunes of the Italian budget and the Federal Reserve rate hike.

The broadest MSCI index of Asia-Pacific equities outside Japan. The MMIAPJ0000PUS rose 0.4% after slipping nearly 4% last week.

Among the emerging markets, Brazil-related values ​​benefited from the South American presidential elections, which saw the victory of the far-right candidate Jair Bolsonaro, whose campaign was centered on the promise of purifying politics and repressing The crime.

Japan's Nikkei .N225 rose 1% while Australian stocks rose 0.8%. KOSPI .KS11 of South Korea added 0.7%.

The E-Mini futures for the S & P 500 ESc1 and Dow 1YMc1 minis were also up 0.3% each after a tumultuous week on Wall Street.

Chinese stocks have however weathered the trend, the CSI 300 first-rate index. The CSI300 lost 0.9%. Hang Seng index of Hong Kong. HSI jumped 0.7%.

Analysts warn of greater volatility after heavy losses suffered by major stock indexes, which left investors with negative returns for the year. The Bears are on the rise, with some indices already in official correction territory in the face of growing concerns about corporate earnings and global growth.

"The sentiment will continue to dominate the short-term market direction and investors will pay close attention to newswires in the coming weeks," said Nick Twidale of Rakuten Securities Australia in Sydney.

"The earnings season continues … and political tensions in the United States, Italy, Germany and the United Kingdom will continue to increase the volatility of their respective markets and contribute to global global flows," he said. added Twidale.

The S & P 500 .SPX index hit its lowest level since early May Friday and flirted with the territory of the correction, subject to heavy losses of Internet technologies and actions.

Data released last week showed that US economic growth grew by 3.5% annualized in the third quarter, compared with 4.2% in the second quarter, partly due to lower soybean exports from the US. tariffs.

The poor economic indicators coming from China recently should also weigh on the opinion of investors.

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 AUD =, which is often traded for the Chinese yuan as a liquid substitute, fell 0.1% to 0.7088 dollars after falling 0.4% last week.

Brazilian Exchange Traded Funds listed in Tokyo (ETF) (1325.T) jumped nearly 14% to reach its highest level in 7 and a half months after Bolsonaro, a former army captain, was propelled to victory in the presidential election.

The Japanese yen JPY =, a safe haven, benefited from the global sale of riskier assets, with investors exposed to risk positions exposed. He gained 0.6% last week and was last at 111.98 for a dollar.

During this week, investors will closely follow the announcement of the monetary policy of the Bank of Japan on Wednesday.

The .DXY dollar index rose 0.1% to 96.471 after rising 0.7% last week.

The EUR = Euro hovered near a low of more than two months to keep at $ 1,1394. 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.

Sterling GBP = held close to a $ 1.2775 dip nearly two months ahead of the expected UK annual budget on Monday. Finance Minister Philip Hammond is likely to ask his divided Conservative party to support government pressure for an agreement on Brexit or to jeopardize a long-awaited easing of austerity.

In commodities, oil firmed with US crude CLcv1 up 30 cents to $ 67.89 per barrel and Brent LCOcv1 added 34 cents to $ 77.96.

The XAU = gold spot was barely changed to 1232.21 oz.