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GLOBAL MARKETS-Asian stocks slip on worry trading, dollar defensive



* MSCI Asia ex-Japan -0.09%; Nikkei -0.63%

* Chinese officials doubt long-term trade deal with US – Bloomberg

* More U.S. economic data due Friday

* Asian stock markets: tmsnrt.rs/2zpUAr4

By Andrew Galbraith

SHANGHAI, Nov 1 (Reuters) – Asian stocks fell on Friday as a weak start to the month and off three-month highs this week on fresh concerns over the Sino-U.S. trade prospects and ahead of U.S. economic data while the dollar eased against major rivals.

Chinese officials suspect a comprehensive long-term trade deal with Washington and the US President Donald Trump is likely, Bloomberg reported on Thursday, citing unnamed sources.

The latest blow to hopes that the world's two largest economies will reach a deal to end their nearly 16-month trade war comes despite comments from Trump on Thursday that countries will soon announce a new site for signing a "Phase One". trade deal after Chile cancelled a planned summit set for mid-November.

MSCI's broadest Asia-Pacific index outside Japan was down 0.09% on the day, about 0.5% lower than the three-month highs touched on Thursday.

Asia's losses mirrored falls in global stock markets on Thursday, as MSCI's equity performance gauge fell to 20-month highs in 47 countries. The index continued to ease on Friday, trimming 0.07%.

Japan's Nikkei slid 0.63% in early trade, and Australian shares were 0.12% lower.

China's news over a trade deal was "not entirely unexpected," Greg McKenna, a strategist at McKenna Macro, said in a morning note to clients, noting that falls in equity markets were relatively small.

Retreats in the S&P 500 and the U.S. The 10-year Treasury yield showed some technical resistance in the market, he said.

“Either way, today's the manufacturing PMI's and then the US Non-farm (payrolls) tonight will be an important factor in where markets head next, ”McKenna said.

The Institute for Supply Management is due to release data from its survey of purchasing managers on Friday. A separate PMI survey released Thursday by the Chicago Fed showed a sharp contraction in midwestern manufacturing activity for October.

The yield on the benchmark 10-year Treasury notes was a touch higher at 1.6927% compared to its U.S. close of 1.691% on Thursday. The two-year yield, sensitive to market expectations of the Federal Reserve policy, was at 1.5279% compared to a U.S. close of 1.526%.

The Fed cut interest rates for a third time this year on Wednesday to help sustain the U.S. growth, but signaled there would be no further reductions unless the economy takes a turn for the worse.

In the currency market, the dollar was weak against the safe haven, trimming 0.06% to 107.95.

The euro was 0.04% higher on the day at $ 1.1155, while the dollar index, which tracks the greenback against a basket of six major rivals, was down 0.07% at 97.285 on the day. The dollar index has fallen 0.56% this week.

U.S. crude ticked up 0.26% to $ 54.32 a barrel and Brent crude rose 0.07% to $ 59.66 per barrel.

Spot gold eased, trimming 0.04% to $ 1,512.57 per ounce. (Reporting by Andrew Galbraith Editing by Jacqueline Wong)

Our Standards:The Thomson Reuters Trust Principles.

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