© Reuters. FILE PHOTO: Market Prices Reflected on TSE in Tokyo in a Glass Window
By Shinichi Saoshiro
TOKYO (Reuters) – Asian stocks fell on Monday as investors dropped expectations of an aggressive rate cut Crude oil prices rose the heightened tensions in the Middle East following the takeover of a British tanker by Iran.
MSCI's broadest index for Asia-Pacific equities outside Japan () fell 0.4%.
Japan's Nikkei () closed 0.2% over last year's more resilient Fed views and caution over the domestic earnings season starting this week.
The Shanghai Composite Index () fell 1
Hong Kong's Hang Seng () slipped 0.9%. The South Korean KOSPI () remained unchanged.
In early European trading, the Euro Stoxx 50 futures () rose 0.06% across the region, the German DAX futures () 0.02% and the UK futures () 0.05 %.  Global stock markets rose briefly towards the end of last week, after New York Fed President John Williams (NYSE :)'s cautious comments over expectations at the central bank, key rates at its July 30-31 meeting However, the stock markets gave up these gains on Friday with Wall Street stocks falling after the New York Fed Williams & # 39; comments declined by saying in his statement that they had fired 50 basis points (basis points) lower The speech was not about potential policies at the upcoming Fed meeting. Emagazine.credit-suisse.com/app/art … = 157 & lang = DE After the Wall Street Journal reported that the Fed is likely to cut interest rates by 25bp this month, interest rates have been turned down. Englisch: emagazine.credit-suisse.com/app/art … = 263 & lang = en Kenya Yamamoto, economist at Daiwa Securities, wrote: "The yield on the dollar has fallen," says Kenji Yamamoto, an economist with Daiwa Securities.
The Fed has lost its 50 bps cut as a result of the WSJ report and the New York Fed's attempt to mitigate earlier Williams comments and the US Treasuries rose due to the greater likelihood of a lower interest rate cut.
The () versus a basket of six major currencies remained stable at 97.174, after rising 0.4% on Friday.
The Euro () changed marginally to $ 1.1216 after plunging 0.5% on Friday, rising 0.25% to 108.00 yen
The Benchmark return for 1 0-year government bonds () extended Friday's modest gains and climbed to 2.062%.
The broad decline in equity markets limited the rise in government bond yields in safe havens.
"One factor that could lead to a decline in stocks this week is tweets by US President Donald Trump on trade issues with China," said Junichi Ishikawa, senior forex strategist at IG Securities.
"Shares may fall if it continues to make challenging trade comments against China this week."
Trump put Beijing under pressure last week by threatening to raise tariffs to another $ 325 billion, although hopes grew that the two sides would soon be able to resume personal negotiations to end their year-long trade war ,
Oil Expands Profits
In commodities, Brent crude futures () were up 1.55% at $ 63.44 a barrel, followed by an increase of about 0.9% on Friday.
The Iranian Revolutionary Guards captured a British-flagged oil tanker on the Strait of Hormuz on Friday after Britain captured an Iranian vessel earlier this month, fueling tensions along an important international oil shipping route.
US crude oil futures () rose 0.77% to 56.06 USD.
Gold slipped from a six-year high as the dollar strengthened and the expectation of a deep Fed rate cut was reversed.