Asian stocks fall as bets on sharp US price fluctuations
By Swati Pandey
SYDNEY (Reuters) – Asian stocks fell on Monday following strong US job data-hardened expectations of a Fed price swing, while the Turkish lira floated near two-week setbacks on central bank independence concerns. 1[ads1]9659003] The partial pension was also curbed by US investment bank Morgan Stanley's decision to reduce exposure to global stocks due to concerns about the possibility of political relief to compensate for weaker economic data.
Asian stocks were generally weaker on Monday, tracking Wall Street falling from record highs last week.
MSCI's widest index for Asia-Pacific stocks outside Japan lost more than 1%, with each market in the red.
Japan's Nikkei failed 0.9%. Chinese stocks were down with the 1.7% Blue Game index and the Hong Kong Hang Seng index down 1.5%.
South Korea's KOSPI was 1.8% and Australian stocks fell about 1% to a five-week low.
"We lower our exposure to global stocks to the extent we consider" underweight, "said Morgan Stanley's London bassist Andrew Sheets in a note. The previous spectrum was" neutral. "
Expensive valuations and pressure on earnings were among The reasons for the downgrade, Sheets said, while the bank increased its exposure to emerging markets government bonds and security ports' Japanese government bonds.
Global stocks have generally been bolstered by expectations that central banks will keep interest rates at or near record levels to boost economic growth. [19659010] These expectations were tempered by a US work report showing that wages in the wage jumped 224,000 in June and made forecasts of 160,000, in one sign the world's largest economy still had fire.
Due to the strength shown in these data, investors now expect the US Federal Reserve chair Jerome Powell to slow down its price hike this year. [19659012] Bets for aggressive Fed easings are already off, with the market now pricing a 27 basis point relief this month, from 33 basis points before payrolls.
Powell will provide additional short-term signals for monetary policy this week on its biannual testimony to the US Congress.
There were some positive news about the prolonged China-US. commercial war with White House Financial Advisor Larry Kudlow confirms that top US and China representatives will meet in the coming week for trade negotiations.
"If the dealers can find a solution to the difficult structural problems that remain between the two sides is another matter, and Kudlow warned that there was no timeline to reach an agreement, said national Australian banker Rodrigo Catril. [19659016] CURRENCY AND GEOPOLITICS
In the foreign exchange markets, the Turkish lira act weakened to 5.88245 per dollar, the lowest since June 25, after the replacement of Turkey's Governor Murat Cetinkaya, whose four-year period runs until 2020, His Deputy Murat Uysal
President Tayyip Erdogan dismissed Cetinkaya to deny the government's repeated repetition of interest rate cuts, raising central bank independence issues
Liraen paired some of his losses to the last team near 5,7575
The dollar rate, which measures the greenback against a basket of large currencies, was a shade weaker at 97,239 after climbing to a 2-1 / 2 week peak at 97,443 on f
The euro was flat at $ 1,1226, not far from a 2-1 / 2 week low of $ 1,1205 affected Friday.
The Australian Dollar, which has been on an appearance since June 18, dropped below US $ 70 for the last deal of $ 0.6985.
Geopolitics may be the focus this week after news on Sunday that Iran will increase its uranium enrichment, in violation of a cap set by a nuclear nuclear nuclear agreement.
"So far, tensions in the US and Iran have not had a significant impact on the markets, but if the excitement escalates, it may be a different story," said NAB's Catril.
In commodity markets, oil prices rose with Brent Raw Futures, the International Reference Price for oil prices, up 16 cents at $ 64.39 per barrel, while US raw materials added 22 cents to $ 57.73.
Spot gold fell 0.1% to $ 1,398.33 an ounce
(Editing Darren Schuettler ) [19659029]
