Shanghai (writers) – Asian shares fell on Tuesday as there was a reduction in relief rallies between China and the United States, whether the United States will be able to address trade differences.
A man sits in front of an electronic board showing stock information in Brokerage House in China, Hangzhou, Zhejiang Province on December 3, 2018. REUTERS / Stringer
A changed US. Yield curve also raises concerns about potential recession.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.3 percent, as Chinese equity markets struggled to exit from a negative territory.
Chinese blue-chip stocks in Shenzhen and Shanghai were slightly weak, and Benchmark Shanghai Composite index was rarely high. Share in Hong Kong fell by 0.3 percent.
Australia's shares declined by 0.8 percent, and Seoul's Cospy decreased by 0.6 percent, while Japan's Nikkei stock index was down 1.3 percent.
Temporary stability in the trade war between the United States and China triggered a global rally in equities markets on Monday, the MSCI's All-Country World Index rose 1.3 percent.
But before the trading day ends, the US The index returned to intraday high because investors took into account the unresolved problems between the two countries.
Over the past, the Dow Jones Industrial Average rose 1.13 percent, S & P 500 was 1.09 percent, and the NASDAQ Composite rose by 1.51 percent.
Bank analysts in nationwide throughout the nation said in a note that overnight business news has left the market with more questions than answers, do US. And can China really improve their differences in 90 days?
"It seems that more details and signs of progress will be required if mild vague emotions continue to confront the initial trade dispute."
There was already confusion on when the 90-day period would begin. The White House official said that it started on December 1. Earlier, White House's Economic Advisor Larry Kudaldo told reporters that it will start on January 1.
In addition, US officials agreed in writing, including any responsibility of China's commitments, including reducing tariff of 40% in China, and clarity was yet to be taken in the weapon.
"The fear in the global markets is that this is just a short-term relief rally and we will come back a few weeks back and the long-term global growth will come down gradually," Australia's Nikut Twittle, an analyst at Rakuten Securities, said in a note.
In the short term, it seems that we can once again find investors in the business of price fluctuation because the news hits the market segment on the progress of the trade agreement. "
Adding worries over the estimation of the Global Economy, the turnaround between the three-year and five-year notes of the US, and the change between the two-year and five-year paper in Monday – Treasury yield can be reversed after the first part of the turn, except for a very short-term debt, the financial crisis.
Analysts expect that the two-year, 10-year yield turn- US. Be seen as a slowdown prediction.
On Tuesday, the yield on 10-year Treasury notes fell by 2.9407 percent compared to 2.991 percent closure on Monday. The two-year yield also declined, but 2.803 percent touches 2.833 percent of the US population by a marginally margin.
It spreads between 10-year and two-year treasures at a cost of less than 14 years, its lowest flat level since July 2007.
"Due to the price of the market in turn for three-fifths of the turn, and the dip in yield of 10 years below 3% yesterday, it is to strengthen these concerns" The US economy probably leads to a downturn. Ink, ING's economist Prakash Sakpal said.
However, he added that the large US released on Monday. Manufacturing data has led to a strong economic point of view, with the new order being a "major driver" in boosting activity.
How can not maintain Monday's rally How can Asian equity markets not sustain, in contrast, after the US-China trade dispute increased 4% on the first day, the oil prices were steadily rising, and the OPEC's key meeting was expected to reduce supplies further.
US Crude price rose 1.2 percent to $ 53.58 a barrel, and Brent crude futures rose 1.1 percent to $ 62.35 a barrel.
In the currency market, the dollar index, which tracks greenbacks against colleagues, halts from 0.2% to 96.808.
Yen was 113 percent poor, at 113.28, and the euro rose 0.2 percent to $ 1.1373.
As the dollar weakened, China's yuan increased. Since Friday, he has added more than 1,000 pipes against Greenback, which rose to 6.8545 on Tuesday morning. At 0327 GMT, it was trading at $ 6.8613.
Federal Reserve Chairman Jerome Powell was on Wednesday prepared to testify before Congress joint committee of commerce, but the US. President George H. W. The hearing was postponed because of the national day of mourning. Bush died on Friday.
Last week, Dollar Powell's remarks came under pressure that the rates were close to neutral levels, which broadly interpreted markets indicating a downward trend in the Fed cycle.
Spot gold jumped to a weak dollar, 0.40 percent to $ 1,235.88 an ounce.
Reported by Andrew Gellbrath; Edited by Mr. Navaratnam and Richard Boursuck