Asian shares struggle as trade fears keep investors cautious
By Hideyuki Sano TOKYO (Reuters) - Asian stocks struggled to gain traction on Friday, following a mixed end to Wall Street trade and as the worsening Sino-U.S. trade dispute kept investors in the region cautious, despite signs of rapprochement between the United States and Europe
By Hideyuki Sano
TOKYO (Reuters) - Asian stocks struggled to gain traction on Friday, following a mixed end to Wall Street trade and as the worsening Sino-U.S. trade dispute kept investors in the region cautious, despite signs of rapprochement between the United States and Europe.
MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> was little changed in early trade.
Japan's Nikkei <.N225> eked out a 0.3 percent gain though it was capped by worries that the Bank of Japan could scale down its asset purchase at its upcoming policy review next week.
MSCI's gauge of stocks across the globe <.MIWD00000PUS> hit four-month highs on Thursday, with European car maker shares <.SXAP> gaining 2.6 percent after the European Union and the United States agreed to negotiate on trade, easing fears of a transatlantic trade war.
U.S. industrial shares <.SPLRCI> also made gains, rising 0.8 percent though the S&P 500 Index <.SPX> dipped 0.30 percent on Thursday, due to a 19 percent dive in Facebook
While that pushed down the Nasdaq Composite <.IXIC> 1.01 percent, other U.S. tech firms held firm, with Amazon.com shares gaining 3.2 percent after market following its stellar earnings.
The 10-year U.S. Treasuries yield
Yet Asian shares were more subdued as trade disputes between Washington and Beijing have shown few signs of abating.
"Now that Washington does not need to use its energy to fight with Europe, it could increase pressure on China," said Nobuhiko Kuramochi, chief strategist at Mizuho Securities.
The Chinese yuan stayed near its 13-month low touched earlier this week.
The offshore yuan traded at 6.8283 per dollar
The Thomson Reuters/HKEX Global CNH index <.RXYH>, which tracks the offshore yuan against a basket of currencies on a daily basis, fell to its lowest levels since May last year, having fallen 2.7 percent so far this month.
The euro traded at $1.1641
The dollar ticked up to 111.22 yen
In commodities, oil prices extended their recovery, after Saudi Arabia suspended oil shipments through a strait in the Red Sea following an attack on two oil tankers.
Brent crude futures
(Editing by Sam Holmes)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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