International stocks drifted lower, with few major coronavirus developments to drive trading.
Futures for the S&P 500 fell 0.8%, suggesting U.S. markets could retreat Thursday. European stocks also declined, with the pan-continental Stoxx Europe 600 down 0.9%, led by losses in France and Germany.
Major stock indexes in Asia fell, with the Hang Seng Index, Japan’s Nikkei 225, Australia’s S&P/ASX 200 and China’s Shanghai Composite falling between 0.2% and 0.6%. South Korea’s Kospi Composite bucked the trend, adding 0.4%.
Christopher Smart, chief global strategist at Barings, said stocks had recovered recently as the initial shock of the pandemic had faded, led by resilient sectors such as technology and health care, and with low inflation expectations boosting the appeal of equities.
Mr. Smart said progress on vaccines would be the most important factor driving further recoveries in economies and financial markets.
Daniel Gerard, senior multiasset strategist at State Street Global Markets, said investors were trying to better understand the potential for an economic turnaround in the third quarter. For now, he said, they are neither aggressively adding to nor cutting back positions in riskier assets, such as shares.
“We do not see anyone with a lot of conviction in risk-seeking, or risk-aversion,” Mr. Gerard said.
A survey of Japanese purchasing managers in both services and manufacturing, released Thursday, showed a severe downturn continuing in Asia’s second-largest economy. The au Jibun Bank Flash Composite PMI came in at 27.4, far below the 50 mark that separates improvement from deterioration. IHS Markit PMI indexes for major European economies and the U.S. are due later Thursday.
Investors will watch China’s annual legislative conclave, which starts Friday, for new spending plans, progress in coronavirus-vaccine development and more clues about economic-recovery patterns, Mr. Gerard said.
In a fresh sign of tensions between the U.S. and China, the U.S. Senate approved legislation Wednesday that could force Chinese companies to give up their listings on American stock exchanges.
The yield on the 10-year U.S. treasury ticked down to 0.666% from 0.679%. Bond yields fall as prices rise.
Brent crude, the global oil benchmark, added 1.5% to $35.80.
A bill passed by the Senate could force Chinese companies to give up their U.S. stock listings.
Photo: jonathan ernst/ReutersWrite to Xie Yu at Yu.Xie@wsj.com and Caitlin Ostroff at caitlin.ostroff@wsj.com
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