By Shinichi Saoshiro
TOKYO (Reuters) - Asian stocks were capped and the dollar dipped on Tuesday after U.S. President Donald Trump accused China and Europe of manipulating their currencies and said he was "not thrilled" with the Federal Reserve for hiking interest rates.
Keeping global trade conflict concerns on the boil, Trump said in an interview with Reuters on Monday that China was manipulating the yuan to make up for having to pay tariffs imposed by Washington on some imports from China.
He also said he believed the euro was being manipulated.
MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> was up 0.02 percent.
Australian stocks <.AXJO> lost 0.7 percent, South Korea's KOSPI <.KS11> nudged up 0.1 percent and Japan's Nikkei <.N225> fell 0.6 percent.
Wall Street's major indexes rose on Monday on optimism over trade talks between the United States and China, though they fell from session highs after Trump's comments.
Immediate focus was on the lower-level trade talks due to start later on Tuesday between the United States and China. Speculation that the talks might help ease trade tensions has shored up the broader equity markets over the past few sessions.
In currencies, the dollar came under pressure after Trump reiterated his displeasure at the Fed's rate hikes, saying the central bank should do more to help him boost the U.S. economy.
"While Trump's displeasure for rising interest rates is nothing new, and the Fed maintains full operational independence, markets remain attentive to such comments," wrote strategists at ANZ.
The dollar index against a basket of six major currencies <.DXY> was down 0.2 percent at 95.714, extending losses from the previous day.
The euro brushed an 11-day high of $1.1493
The U.S. currency slipped to 109.84 yen
The offshore Chinese yuan
Yield on the 10-year U.S. Treasury note
Oil prices extended their overnight rise, with U.S. crude futures
(Reporting by Shinichi Saoshiro; Editing by Eric Meijer)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Updated Date: Aug 21, 2018 07:06 AM