Asian stocks ease, dollar subdued as investors tread with caution

Asian stocks edged lower on Thursday, while the dollar was on the back foot as investors remained cautious ahead of an expected 25 basis point hike in interest rates by the U.S. Federal Reserve next month.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was 0.16% lower, while Japan’s Nikkei (.N225) was up 0.07%. Australia’s S&P/ASX 200 index (.AXJO) was 0.07% lower.

Shares of Tesla Inc (TSLA.O) slid 6% in after-hours trading after the electric vehicle maker posted its lowest quarterly gross margin in two years, missing market estimates. Elon Musk doubled down on the price war he started at the end of last year, saying Tesla would prioritise sales growth ahead of profit margins in a weak economy.

E-mini futures for the S&P 500 fell 0.25%, while Nasdaq futures slid 0.36%. Investor focus in Asia will be on earnings from Taiwan Semiconductor Manufacturing Co Ltd (TSMC) (2330.TW) later in the day, with analysts expecting the company to post a 5% fall in first-quarter net profit.

China’s blue-chip CSI 300 Index (.CSI300) was down 0.16%, while the Shanghai Composite Index (.SSEC) eased 0.22%. Hong Kong’s Hang Seng index (.HSI) was 0.6% higher.

This report’s information was first seen on REUTERS; to read more, click this link.