By Shinichi Saoshiro
TOKYO (Reuters) – Asian stocks tracked Wall Street's slide Wednesday while investors turned into Safe government bonds, driven by fears that global growth will suffer as a potential trade agreement between the United States and China seemed to be unraveling.
Beijing said Tuesday that Chinese Vice President Liu He will visit Washington on Thursday and Friday for trade negotiations, and set up a final council to save an agreement that would avoid a sharp increase in tariffs on Chinese goods ordered by US President Donald Trump.
In early European trade on Wednesday, the pan region was down 0.09 percent, German was up 0.05 percent and futures were 0.03 percent.
MSCI's widest index for Asia-Pacific stocks outside Japan, which earlier on Wednesday morning affected its lowest level since late March, was down 0.55 percent.
The index had climbed to a nine-month peak three weeks ago, buoyed by factors that include strong Chinese economic data and views on trade negotiations in Sino-U.S. Became progress and would end in a deal.
The secluded 0.1
Australian shares fell 0.4 percent, South Korea's fall 0.3 percent and Japan's down 1.9 percent.
"The stock market had kept an optimistic outlook on trade with the US and China, likely pricing in a close of negotiations. But the sudden resurgence in trading tensions has forced it to intervene with uncertainty, such as the risk that the talks are taking an unforeseen turn , "wrote strategists at Goldman Sachs (NYSE :).
The Wall Street shares had gone on Tuesday, losing 1.65 percent and buying 1.8 percent on US and China trade concerns.
Global stocks had a rocky start to the week after Washington Monday accused Beijing of getting back from commitments during trade negotiations. It followed President Donald Trump's unexpected statement on Sunday that he would raise tariffs of $ 200 billion of Chinese goods to 25 percent from 10 percent.
"From a stock market perspective, the immediate focus on the two-day talks is scheduled to take place between US and Chinese officials," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.
"However, it is difficult to imagine the two the parties resolve their differences in just two days of conversations. The markets may have to start pricing in the trade conflict as a long-term factor again. "
Government bond prices rose and their returns fell sharply as investor panic taxed on emerging market markets.
Benchmark 10-year return on US government bonds, German Bundes and Japanese government bonds sank to one month's downs
Japan's 10-year return burrowed deeper into negative territory and last stood at minus 0.055 percent.
In currency markets, dollars fell for the fourth day and affected a six-week low at 109,905 yen.
The Japanese yen, a perceived safe haven, often win against their peers in times of market turmoil and political strife.
The euro was slightly higher at $ 1,1204 after the close of the previous day almost flat, and has remained in a close range for the last few sessions.
Dollars in New Zealand was down 0.2 percent at $ 0.6560 after the country's central bank had reduced interest rates to record low 1.5 percent from 1.75 percent on Wednesday among weaker domestic stocks. ivity and employment headwinds.
The previous one had fallen to $ 0.6525, the lowest since November 2018.
The Australian dollar increased 0.2 percent to $ 0.7022.
It was on the cover after the Reserve Bank of Australia kept its interest rate unchanged at 1.5 percent on Tuesday, defying expectations for a cut.
US West Texas Intermediate Raw Futures rose 0.78 percent to $ 61.88 per barrel, recovering some ground after lowering 1.36 percent on Tuesday.
Prices had fallen as renewed trade concerns in the US and China, causing concerns about slower global growth, which demanded the demand for goods. But relatively tight market conditions as a result of US sanctions against Iran and Venezuela have provided underlying support for oil prices.
futures were up 0.54 percent at $ 70.26 per barrel, withdrawing from a month's trough of $ 68.79 brushed on Monday.