Asian stocks are largely flat, Japan is hurt by Sino-American tensions

By Hideyuki Sano and Vidya Ranganathan

TOKYO / SINGAPORE (Reuters) – Asian stock markets, including China's, were little changed on Monday, drawing on news that the US administration is considering removing Chinese companies from US exchanges. [19659002] MSCI's broadest index of Asia-Pacific stocks outside Japan () was flat, while China's Shanghai stock index () slipped 0.1%, and barely answered some of the concerns surrounding recent Sino-American tensions that caused the Nasdaq stock market. The index () to fall more than 1[ads1]% on Friday.

European equities were seen as struggling when they open for trading. Pan-European Euro Stoxx 50 futures () were down 0.11%, German DAX futures () down 0.08% and futures () 0.16% lower.

Risk weights hit US trading on Friday after news Trump administration is considering radical new economic pressure tactics on Beijing, including the possibility of delisting Chinese companies from US exchanges.

The report beat Chinese shares listed on US stock exchanges, with Alibaba Group Holding (N 馃檪 falling 5.15% and (O 馃檪 5.95% on Friday.

Concerning such an escalation will hurt Japan the most weighed on Nikkei (), which threw 0.9%. US stock futures () gained 0.35%, offsetting most of Friday's 0.53% fall in the index.

Trading in Chinese markets was quiet ahead of a long break. Chinese stock markets will only trade on Monday this week ahead of the country's national holiday, which runs until October 7.

There were mixed signals from China's production surveys on Monday that showed sustained export weakness and surprising improvement in domestic consumption indicators, and a Chinese central bank statement that briefly suggested plans for more stimulating policies.

China's yuan moved little to 7,1260 yuan per dollar, while the rally moved slightly from Friday's three-week low of 7.1520.

Delisting of Chinese companies from US stock exchanges was part of a broader effort to limit US investment in Chinese companies, two sources told the Reuters case.

A US Treasury Secretary said that the United States does not currently plan to stop Chinese companies from listing on US exchanges, Bloomberg reported on Saturday.

"While China has a current account surplus and is a net credit nation, Chinese companies are net debtors and rely on foreign capital," Koji Fukaya, President of Office Fukaya Consulting.

"It looks like Washington is trying to limit Chinese companies' business by putting pressure on funding," he said.

with US-China trade talks expected to be held on 10-11. By October, many market players hope that such drastic measures against the capital markets will be avoided.

"At this point, the markets have to wait and see. Of course, we need to be guarded against more crazy headlines, but this week may be a little quieter given the holidays in China. Economic data will probably be the main driver of markets," said Kyosuke Suzuki , Director of Forex at Societe Generale (PA :).

US data on Friday showed that consumer spending barely increased in August and business investment remained weak, suggesting that the US economy was losing momentum as trade conflicts dragged on.

Industrial production in Japan and South Korea, which was released on Monday morning, fell more than expected, emphasizing headwinds from the trade war.

Investors are also keeping a close eye on American politics.

US House Speaker Nancy Pelosi said public opinion is now on the side of an investigation into Trump following the release of new information about his talks with Ukrainian President Volodymyr Zelenskiy.

Major currencies changed little, with yen trading a little firmer at 107.75 yen.

The euro hovered around $ 1.0932 () and had plunged to a 28-month low of $ 1.0904 on Friday as worries about tepid growth in Europe weighed on the single currency.

Sterling traded at $ 1.23, not far from Friday's low $ 1.2270, the lowest since September 9.

Boris Johnson said on Sunday that he would not quit as UK prime minister even if he fails to secure an agreement to leave the EU, insisting only his conservative government that can deliver Brexit on October 31.

Oil prices dipped, but stayed away from last week's lows.

Saudi Arabia's Crown Prince warned in an interview with the CBS program "60 Minutes" was broadcast on Sunday that commodity prices could spike to "unimaginably high numbers" if the world does not come together to deter Iran.

But Crown Prince Mohammed bin Salman said he preferred a political solution to a military one, and the September 14 attacks on the kingdom's oil plant were a war of Iran.

Futures for Brent Crude Oil () fell 0.36% to $ 61.64 barrels while US West Texas Intermediate (WTI) crude () fell 0.14% to $ 55.83 per barrel. [19659033] (This story corrects the heading and first paragraph of Asia stocks & # 39; mostly flat & # 39; (not & # 39; lower edge & # 39;) and the second paragraph of MSCI Asia-ex-Japan- index to flat (not down 0.55%)

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