By Tomo Uetake
TOKYO (Reuters) – Asian equities came under pressure on Tuesday as Chinese markets and the yuan fell. They were hurt by new concerns about the intensified Sino-US trade war and the losses in the Wall Street indices.
MSCI's broadest index for Asia-Pacific equities outside Japan fell 0.3 percent. The index has fallen more than 12 percent this month and is on track for its biggest decline since 2008, the year of the global financial crisis.
Shanghai shares fell 0.6% in early trading while Japan's Nikkei average rose 0.7% (1
The CBOE Global Markets Volatility Index, known as the Wall Street "Feistemaker," rose to 27.86 points, the highest since October 11, and the second highest since the volatility shock in early February.
"The likelihood of global equities turning into a bear market is increasing," said Masanari Takada, cross-asset strategist at Nomura Securities.
"While some investors who look at fundamentals have stocks on d ips, there are other players who sell automatically in response to heightened volatility, and shoppers will be overwhelmed when we have negative headlines about tariffs in times like these.
The Chinese yuan continued to drop to near two-year lows after the central bank set its official yuan average at its lowest level in more than a decade. 19659003] In onshore trading, the yuan slipped 0.1 percent to 6.9698 per dollar, shaking up speculation about whether the central bank will tolerate slipping past the key level of $ 7 per dollar.
The dollar index rose higher and was just below it 10-week high on Friday: The index gained on a decline in the euro after news German Chancellor Angela Merkel would not stand for re-election as successor to her CDU party ,
Merkel said she would not request re-election She announced the end of a 13-year era in which she dominated European politics.
After Russia signaled that production will remain high, worries over the global economy raised concerns about crude oil demand. [O/R]
West Texas Intermediate crude oil futures and Brent crude oil futures were last traded at $ 66.87 and $ 76.92, respectively.
(Report by Tomo Uetake, edited by Sam Holmes)