Asia stocks stay steady amid fears of a slowdown in China

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Asia stocks stay steady amid fears of a slowdown in China

- Asian stocks were steady Wednesday amid a softer tone in China over its latest technology clampdown and as traders weighed the spread of the delta strain of Covid - 19. Crude oil has declined.

Hong Kong stocks tumbled after Chinese state media balanced language attacking gaming companies, bolstering Tencent Holdings Ltd. Shares in Japan slipped where SoftBank Group Corp. retreated on a potential block of its $40 billion sale to chip company Nvidia Corp. U.S. equity contracts fluctuated in the wake of a record close to S&P 500 on robust earnings.

Investors continue to assess regulatory risks in Beijing as China pushes on with a crackdown on tech giants. Alibaba Group Holding Ltd.'s revenue was missed forecasts for the first time in over two years, a sign of the clampdown's toll.

The 2010 US Treasury yield held its retreat and oil weakened to $60 a barrel. The delta strain is exacerbating concerns that the rebound from pandemic is losing steam. The results of New Zealand jobs boosted rate-hike bets, strengthening its currency and scrapping the 10 year bond.

Solid earnings have propelled the U.S. and European shares to all-time highs, weathering the spread of the more contagious Covid - 19 variant as well as a burst of inflation attributed to pandemic-linked bottlenecks. The mood in Asia is more somber amid China's regulatory broadsides and lag vaccination rates, which are delaying economic reopening across the region.

We think the delta variant is not going to slow the recovery, it just goes to delay it, Laila Pence, Pence Wealth Management president, said on Bloomberg Television. The Federal Reserve is going to be stuck with a lot more inflation. The more contagious delta variant has pushed the threshold for herd immunity well over 80% and potentially approaching 90%, according to an Infectious Diseases Society of America briefing. Meanwhile, analysts are reviewing economic growth projections for China as officials grapple with the broadest Covid 19 outbreak since the beginning of the pandemic.

Key jobs data due later this week could fuel market swings if they lead investors to adjust expectations over the Federal Reserve's likely timeline for eventually tapering stimulus. Next Fed Vice Chair Richard Clarida will discuss monetary policy Tuesday.

Treasury quarterly refunding announcement is expected WednesdayThe Federal Reserve Vice Chair Richard Clarida due to speak WednesdayBank of England is expected to keep its benchmark interest rate and its bond buying target unchanged ThursdayReserve Bank of India monetary policy decision, briefing FridayThe U.S. jobs report is expected to show another robust month of hiring Friday

For more market analysis read our MLIV blog.

The futures of the S&P 500 index slipped 0.1% at 11: 52 a.m. in Tokyo. Nasdaq 100 futures rose 0.8% S&P 500 futures, big difference. The Nasdaq 100 rose 0.7% Japan's Topix index was 0.3% Hong Kong's S&P ASX 200 Index rose 0.3% Argentina's Kospi index rose 0.9% Hong Kong's Hang Seng Index rose 0.3% China's Shanghai Composite index increased 0.2% Euro Stoxx 50 futures rose 0.2% EUROSCOPE indice rose 0.4% Australia's 500 Index rose 0.3% Taiwan's Topix index rose 0.3% Japan's Topix index lost 0.3% China's Topix index became 0.2%

The yen traded at $1.1871 per dollarThe offshore yuan was 6.4613 per dollarThe Bloomberg Dollar Spot Index was little changedThe euro was little changed at 109.06 per dollarInformation:

The yield on 10-year Treasury bonds grew one basis point to 1.18% Australia's 10 year bond yield was stable at 1.16%.

West Texas Intermediate crude fell 0.2% to $70.42 a barrelGold was at $1,813. 07 an ounce, up 0.2%.