Asian stocks set to open amid China's clampdown

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Asian stocks set to open amid China's clampdown

Asian stocks are set to open on Wednesday as China's clampdown on its technology giants and the spread of delta Covid - 19 strain subdue sentiment. Crude oil has retreated.

Futures in Japan, Australia and Hong Kong edged up. Traders will be monitoring SoftBank Group Corp. on a potential block of its $40 billion sale of Arm Ltd. to chip company Nvidia Corp. U.S. equity contracts fluctuated after favorable corporate earnings took the S&P 500 to another record closing overnight

Chinese stocks listed in the United States slid amid fears that online gaming will be the next industry in the firing line of Beijing's massive regulatory crackdown on technology giants. Alibaba Group Holding Ltd.'s revenue failed estimates for the first time in over two years, a sign the clampdown is taking a toll on the stock market.

The 10-year U.S. Treasury yield held it retreat and oil dipped to $70 per barrel. The delta strain is exacerbating concerns that the rebound from the pandemic is losing steam. Investors remain cautious as they weigh robust earnings against rising Covid 19 cases and worries about inflation. Economic data show they could sting market swings in the weeks ahead if they lead investors to adjust expectations over the Federal Reserve's likely timeline for eventually tapering stimulus. Wednesday, the Fed Vice Chair Richard Clarida will speak about monetary policy.

'We think the delta variant is not going to delay the recovery, it's just going to stop it, Laila Pence, Pence Wealth Management President, said on Bloomberg Television. The Federal Reserve is going to see a lot more inflation. The spread of Delta coronavirus variant has pushed the threshold for herd immunity to well over 80% and potentially approaching 90%, according to an Infectious Diseases Society of America Briefing.

If an economic release is expected to be issued WednesdayThe Federal Reserve Vice Chair Richard Clarida due to speak WednesdayBank of England is expected to keep its benchmark rate and its bond buy target unchanged ThursdayReserve Bank of India monetary policy announcement briefing FridayThe U.S. jobs report is expected to show another robust month of hiring Friday

For more market analysis, see our MLIV blog.

As of 8:34 a.m. today, the S&P 500 futures slipped 0.2% in Tokyo. The Nasdaq 100 futures rose 0.8% S&P 500 index. The Nasdaq 100 rose 0.7% Nikkei 225 futures rose 0.3% Australia's S&P ASX 200 Index futures added 0.1% Hang Seng Index future rose 0.2% earlier.

The currency exchange rate was by 109.00 per dollarThe offshore yuan was at 6.4668 per dollarThe Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.1868 per dayCastual exchange rate was 5000 per cent changed

The yield on 10 - year bonds was steady at 1.17% Australia's 10-year bond yield was little changed at 1.16%.

West Texas Intermediate crude fell 0.2% to $70.41 a barrelGold was at $1,810 an ounce$.