By Wayne Cole
SYDNEY (Reuters) – Asian stock markets plotted Tuesday as uncertainty around Sino-US trade talks and political strife in Hong Kong expressed sentiment, while bond-backed securities triggered a bounce.
MSCI's broadest index of equities in Asia and the Pacific off Japan rose by a slight 0.04%, following a sharp 1.2% pullback on Monday.
Japan's liquidation of each side of the flat, while Shanghai chips were easily 0.1%. E-Mini futures for the S&P 500 also dipped 0.1
Caution ruled ahead of a speech by US President Donald Trump to the New York Economic Club later in the day in case anything came new word on Chinese and US trade in Phase 1.
Trump failed markets over the weekend when he said there had been incorrect reporting of the US's willingness to raise tariffs on China.
On a more positive note, Politico reported that Trump would announce this week that he is postponing a decision to impose tariffs on imported EU cars for another six months.
Investors were anxious about the situation in Hong Kong after a violent escalation of protests hit nearly 2% of Asia-exposed banks HSBC and StanChart.
The riot police were deployed at subway stations throughout the territory and large queues were formed on railway platforms while commuters struggled to get to work.
A partial vacation in the United States closed the Treasury market on Monday, providing a quiet session on Wall Street. It ended up 0.04%, while the S&P 500 lost 0.20% and the Nasdaq 0.13%.
Shares of Boeing (NYSE 🙂 Co jumped 4.5% after saying they expected US regulators to approve the return to commercial service of the grounded 737 MAX jet in the coming weeks, and expect commercial service to resume in January.
Tax capacities were in demand when trade resumed in Asia, with the return on 10-year banknotes falling to 1.918% and away from last week's three-month high of 1.97%.
In foreign exchange markets, the main action was in sterling, which hit a six-month euro market after the Brexit party said it would not rival former Conservatives had seats in Britain's elections.
In a significant boost for Prime Minister Boris Johnson ahead of the December 12 election. Brexit party leader Nigel Farage said he did not want anti-Brexit parties to win, so it was to put candidates in seats won by the Right in 2017.
The pound reached 0.88282 per euro, shooting to 1 , $ 8585 hav ing increased 0.6% overnight.
Against a basket of currencies, the dollar remained at 98,256. The euro went up to $ 1.1030 and was away from a three-week low of $ 1.1015, while the dollar faded to 109.10 yen.
suffered a third day of decline, touching the lowest since the beginning of August at $ 1,447.89 per ounce. It was last traded at $ 1,455.62.
Oil prices fell lower as the lack of progress in trade negotiations in the US and China kept prices under pressure, although bullish inventory data provided support. [O/R]
lost 15 cents to $ 56.71 a barrel, while futures fell 13 cents to $ 62.05.
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