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Home / Business / Asian stocks fall despite strong Wall Street; Oil retreats

Asian stocks fall despite strong Wall Street; Oil retreats



By Andrew Galbraith

SHANGHAI (Reuters) – Asian stock markets faltered on Wednesday as losses in South Korea and uncertainty over China's plans for further stimulus arrived as the economy began to show signs of recovery ,

MSCI's broadest index Asia-Pacific equities outside of Japan fell 0.3 percent, breaking early gains after the overnight record settlement on Wall Street.

European indexes were also expected to weaken.

The pan-European euro was traded in early European trading Stoxx-50 futures fell 3.49 percent to 3,426, German DAX futures 0.28 percent to 12,234 and FTSE futures 0.21 percent to 7,451.

In Asia, South Korea's KOSPI was the biggest loser, dropping 1 percent. [19659007] Investors have rejected the government's planned supplemental budget, which is partly aimed at supporting exports, and worried that chipmaker Texas Instruments expects a slowdown in demand for microchips, which could continue for some time

The Stocks from Samsung Electronics fell 1.6 percent.

"Texas Instruments has released some good results but put a little bit of cold water into the events of the second half of the year," said Frank Benzimra, head of Asia's equity strategy for Societe Generale.

Chinese equities moved between gains and losses as investors debated whether Beijing would slow the rate of political easing following stronger-than-expected economic growth in the first quarter.

The blue-chip CSI300 has recently dropped by about 0.1 percent, having previously fallen 1.3 percent.

China's central bank is likely to disrupt the economic outlook before taking further steps to reduce lender reserve requirements after reducing growth data The urgency to act, political insiders said.

Australian equities outperformed the rest of the region, rising 1.1 percent to over 11-year highs after a dramatic downturn in Australia Inflation increased the likelihood of a rate cut.

Australia's annual CPI inflation fell to 1.3 percent in the March quarter from 1.8 percent in the previous period, its lowest level since 2016.

The Japanese stock index Nikkei lost 0.3 percent.

The mixed day in Asia came after positive earnings from Coca-Cola, Twitter, United Technologies and Lockheed Martin, helping the Nasdaq and S & P 500 indices reach record Wall Street overnight.

The Dow Jones Industrial Average The S & P 500 rose 0.52 percent to 26,647.97, the S & P 500 rose 0.91 percent to 2,934.31 and the Nasdaq Composite gained 1.35 percent to 8,123.25.

Analysts said a stronger political environment has helped boost risk appetite

"The central bank has tightened the central bank around the world in its cautious stance, and global sentiment reflects genuine concern for individual countries and countries Not a recession, the risk has diminished, "said Greg McKenna, a strategist at McKenna Macro in Australia, in a note to customers.

But after an early rise on Wednesday, the stock futures of the S & P 500 e-mini slipped 0.12 percent to 2,934.5.

Equity market gains were supported by rising energy shares on Tuesday after Brent Crude, the global benchmark, hit its highest level since November 1.

Oil prices rose after the US ended six months of waivers allowing most of Iran's top eight buyers to import more limited quantities of Iranian oil into Asia.

Gulf OPEC members stated that the deficits resulting from the US waivers would not be offset, but that production would be increased only when needed.

Brent made some gains on Wednesday, slipping 0.34 percent to $ 74.26 a barrel. US crude dropped $ 0.39 to $ 66.04 a barrel.

STEEPER YIELD CURVE

US Treasury yields fell alongside most Asian stocks Sury Notes hit 2.5541 percent against a US close of 2.57 percent on Tuesday, while the two-year yield fell to 2.3458 percent, compared to a US-based closing price of 2.364 percent.

US Treasury yields fell as yields rose The US yield curve pointed to a continued bullish outlook for the US economy.

Two-year and ten-year government bond yields rose Wednesday morning to 21.5 bps, a new high for the year. Most recently, it was 20.6 basis points.

The yield curve steepens as longer-term returns rise faster than shorter-term returns, indicating a bullish investor sentiment.

The US Dollar Index tracks the greenback Against a basket of six major competitors, it remained at 97.644, close to a 22-month high after strong US real estate data.

The dollar weakened 0.4 percent to 111.81 against the yen, while the euro fell 0.14 percent to $ 1.1209

spot gold fell 0.2 percent when the dollar gained in strength, with one ounce earning $ 1,269.92. [GOL/]

(Coverage by Andrew Galbraith, editors of Richard Borsuk and Darren Schuettler)


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