Stocks in Asia were mixed as investors continued to monitor geopolitical developments and watch earnings reports for signs of health in the global economy. The pound retained its slide.
Shares in Japan, China and Seoul traded flat, while equities retreated in Sydney. Hong Kong opened steady with little reaction seen to a Financial Times report that the Chinese government is drafting a plan to replace Carrie Lam. Chip stocks fell in Asia after a forecast from Texas Instruments trailed forecasts. Earlier, the S&P 500 Index slipped as developments on Brexit sapped risk appetite. Treasury yields were steady after falling on Tuesday.
The U.K. Parliament blocked Boris Johnson’s plan to rush his Brexit deal into law, leaving proceedings in limbo and a British election looking likely. European Council President Donald Tusk said he’d recommend the EU accept the U.K.’s request for an extension.
Away from politics, it’s a huge week for earnings, with about 20% of S&P 500 members slated to report results. So far the numbers have generally surprised positively, reassuring investors that companies are weathering slowing growth and the trade war. All the same, analysts are cutting estimates for next year as the dispute between the world’s biggest economies continues to take a toll.