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Hong Kong Leads Lower to Asian Stocks, Oil Near 5-Month Lows By Reuters

© Reuters. A woman points to an electronic board showing stock prices as she poses in front of the board after the opening ceremony on the Tokyo Stock Exchange (TSE). She Wants the Success of the Japanese Stock Market in Tokyo

By Hideyuki Sano

TOKYO (Reuters) ̵

1; Asian shares fell for the second consecutive time on Thursday after a day of massive street protests, while oil prices plummeted due to higher inventories and a rise in oil prices Stockpiles of five-month lows flirted with bleak prospects for demand.

Hopes that the US and China will reach an agreement on the sidelines of a Group 20 summit meeting in Osaka on June 28-29 have eased, which is also affecting sentiment and driving down bond yields. [19659004] "There is not even a plan for bilateral ministerial-level meetings before the G20 summit and you can not expect a greater deal," said Hirokazu Kabeya, chief strategist at Daiwa Securities.

MSCI Asia Pacific Index broadest Stocks Outsi de Japan even fell 1%, while Hong Kong fell 1.5% after a 1.7% decline on Wednesday.

The pressure to sell in Hong Kong came after a mass demonstration against laws allowing the surrender of citizens to China had provoked a mass protest and some of the worst riots in the country since Britain returned it to Chinese rule in 1997.

Japan lost 0.8%, while US stock futures in Asia lost 0.3%, having suffered minor losses the day before when the decline was 0.20%.

Oil was close to 5-month lows, driven by another unexpected increase in US crude oil inventories, and the bleak outlook for demand due to the prospect of a continuing trade war between China and the United States.

Futures, at $ 60.06 in early trading, edged down 3.7% on Wednesday, barely reaching $ 59.97 a barrel, the lowest since December 28 for the international benchmark.

United States. West Texas Intermediate Crude Oil futures were $ 51.12 per barrel, compared to the closing of $ 50.72 a barrel the previous day, the weakest since January 14.

"It is a bit puzzling that oil prices are so low on global stock prices. Weaker oil prices will slow inflation and stimulate interest rate cuts," Kabeya of Daiwa said.

Government data showed Wednesday that US consumer prices barely rose in May and annual core inflation slowed down 2.0%, compared to a peak of 2.4% last July, reflecting growing expectations of a key rate cut The US Federal Reserve in the coming months reinforced.

Investors will pay attention to what policymakers say after the Fed's next political meeting on June 18th. 19, whereby Fed Funds cut interest rates on futures by 25 basis points for the subsequent policy review on 30/31. July. 10-year US Treasury yields fell to 2.103 percent, close to 2.053 percent on Friday, its lowest level since September 2017.

In Asia, bond yields fell. Long-dated Japanese government bond yields reached their lowest level since August 2016, with the 20-year return on the 20-year yield dropping to 0.220 percent.

In Australia, which has long been known for its high yielding currency, yields fell to record low three-year yields now drops below 1 percent.

In the foreign exchange market, the yen as a source of risk rose 0.25% to 108.25%, while the Australian dollar fell 0.2% to $ 0.6913.

The euro has barely changed at $ 1.2993 after beating on Wednesday after US President Donald Trump considered sanctions for Russia's Nord Stream 2 pipeline project and warned Germany against it Energy to be dependent on Russia.

The British pound is back on its feet after the UK legislature thwarted an oppositional Labor party's attempt to block Brexit without agreement by taking control of parliamentary parliamentary agendas.

Sterling raised $ 1.2688, not far from this week's low of $ 1.2653.

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