Asia Stocks Slump as Dovish Fed Minutes Spur Yen: Markets Wrap 

Asian equities followed U.S. stocks lower, with Japanese shares slipping after minutes from the Federal Reserve’s latest meeting were deemed dovish enough to send the yen climbing.

Stocks in Japan and Hong Kong led declines in Asia after the S&P 500 index slipped from all-time highs. While the yen strengthened a second day, the Bloomberg Dollar Spot Index was slightly higher, recovering some of Wednesday’s losses. Treasuries maintained the previous session’s gains. Crude rebounded ahead of government data on stockpiles.

Fed policy makers expressed confidence they can take their time raising rates as there’s little threat inflation will suddenly accelerate, according to the minutes. Officials wrestled with uncertainty on issues ranging from the Trump administration’s fiscal stimulus plans to the headwinds a rising dollar may pose. The odds for an increase in March retreated to 36 percent. Allianz SE chief economic adviser Mohamed El-Erian said that seems “too low.”

What traders are likely to be watching out for:

• Glencore Plc reports 2016 earnings that may be buoyed by asset sales and cost cuts, coupled with higher commodity prices. Reinvestment or return of excess cash will be a key value driver, and analysts will be looking for more detail on the Rosneft oil deal.
• Singapore is expected to report inflation accelerated in January.

Here are the main moves in markets:

Currencies

• The Bloomberg Dollar Spot Index rose less than 0.1 percent as of 1:01 p.m. in Tokyo, after falling 0.2 percent on Wednesday. The yen climbed 0.1 percent to 113.25 per dollar, extending a 0.3 percent gain from the previous day.
• The Korean won rose 0.4 percent, climbing for a third day. The central bank kept its policy interest rate unchanged for an eighth month as improvements in exports and inflation offset concerns over a political scandal that’s hurt domestic confidence.
• The euro added 0.1 percent to $1.0565 after gaining 0.2 percent on Wednesday.

Stocks

• Japan’s Topix index declined 0.3 percent, following three days of gains. Australia’s S&P/ASX 200 Index slid 0.2 percent, while New Zealand’s S&P/NZX 50 Index advanced 0.4 percent. South Korea’s Kospi was little changed.
• The Hang Seng China Enterprises Index dropped 0.4 percent, after a 1.2 percent jump on Wednesday, while the Shanghai Composite Index also fell 0.4 percent.
• Futures on the S&P 500 were flat after the benchmark index lost 0.1 percent. The Stoxx Europe 600 Index gave up earlier gains to end little changed.

Bonds

• The yield on 10-year Treasuries was at 2.41 percent, after sliding two basis points on Wednesday.

Commodities

• Oil climbed 0.9 percent to $54.06 a barrel, after a 0.9 percent drop in the previous session. An industry report showed U.S. crude stockpiles fell, in a sign that government data due Thursday may show the first contraction this year.