Asian stocks find modest support on firmer U.S. futures
By Stanley White TOKYO (Reuters) - Asian shares eked out meagre gains on Wednesday, as higher Wall Street futures provided some relief for investors after an overnight U.S. selloff, though deeper worries about the global economy are likely to keep a lid on sentiment.
By Stanley White
TOKYO (Reuters) - Asian shares eked out meagre gains on Wednesday, as higher Wall Street futures provided some relief for investors after an overnight U.S. selloff, though deeper worries about the global economy are likely to keep a lid on sentiment.
MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> was down 0.03%, Japan's Nikkei <.N225> rose 0.04% and Australia's shares rose 0.07%.
The U.S. yield curve inversion deepened on Tuesday to levels not seen since 2007, which sent Wall Street stocks lower. The S&P 500 <.SPX> fell 0.33%.
Gold, which is bought as a safe haven during times of economic uncertainty, traded close to a six-year high.
"Bonds are rallying and there is limited upside for stocks right now," said Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ Kokusai Asset Management Co in Tokyo.
"But I don't want to give up on equities just yet. The U.S. Federal Reserve and officials in other countries simply have to do more to stimulate their economies, which will eventually prevent the bottom from falling out."
U.S. stock futures
Investors will focus on how Chinese shares open after China late on Tuesday unveiled measures to boost consumption.
A trade dispute between the United States and China is now in its second year and is placing increasing strain on the global economy, forcing policy makers to respond with interest rate cuts and stimulus measures to bolster growth.
A bond yield curve inverts when long-term yields trade below short-term yields and is commonly considered a signal of an impending economic recession.
The yield on benchmark 10-year Treasuries
Yields on 30-year Treasuries stood at 1.9554%, below 3-month T-bill yields of 1.9951%, which some traders say is an even more bearish signal.
The dollar was little changed at 105.67 yen
Investors are also focused on Sept. 1, when the first stage of U.S. tariffs on $300 billion worth of Chinese goods is scheduled to go into effect. In response, China has unveiled tariffs on U.S. products set to go into effect the same day.
(Editing by Sam Holmes)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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