Asian shares tentative as Trump tempers Sino-U.S. trade optimism
By Hideyuki Sano TOKYO (Reuters) - Asian shares edged up on Wednesday but investors were cautious after U.S. President Donald Trump tempered optimism over progress made so far in trade talks between the world's two largest economies
By Hideyuki Sano
TOKYO (Reuters) - Asian shares edged up on Wednesday but investors were cautious after U.S. President Donald Trump tempered optimism over progress made so far in trade talks between the world's two largest economies.
MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> was up 0.15 percent while Japan's Nikkei <.N225> lost 0.2 percent.
On Wall Street, the S&P 500 <.SPX> shed 0.31 percent overnight, losing steam after hitting a two-month high.
Trump said on Tuesday he was not pleased with recent trade talks between the United States and China, souring the improved market sentiment following weekend comments from U.S. Treasury Secretary Steven Mnuchin that trade war is "on hold".
His remarks followed Beijing's announcement that it would cut import tariffs for automobiles and car parts.
Trump also floated a plan to fine ZTE Corp <000063.SZ>, <0763.HK> and shake up its management as his administration considered rolling back more severe penalties.
"The market probably became overly optimistic on Monday. The reality is the talks are still continuing as they haven't made headway on various issues, including intellectual properties," said Norihiro Fujito, senior investment analyst at Mitsubishi UFJ Morgan Stanley Securities.
Further weighing on prices of risk assets, Trump also said there was a "substantial chance" his summit with North Korean leader Kim Jong Un will not take place as planned on June 12 amid concerns that Kim is resistant to giving up his nuclear weapons.
The cautious mood helped to underpin bonds. The 10-year U.S. Treasuries yield
As lower U.S. yields sap the appetite for the dollar, the euro traded at $1.1782
Against the yen the dollar slipped to 110.81
The biggest mover in the currency market was the Turkish lira, which fell almost two percent early on Wednesday to a record low after rating agencies sounded the alarm on Tuesday about plans by President Tayyip Erdogan to tighten his grip on monetary policy.
The lira has fallen almost 15 percent so far this month.
In commodities, oil prices held firm near 3-1/2-year highs on potential supply concerns surrounding Venezuela and Iran.
U.S. West Texas Intermediate (WTI) crude
(Editing by Shri Navaratnam)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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