Growth woes drawn rally in Asian stocks, dollar tie by reuters
© Reuters. FILE PHOTO: A man looks in front of an electronic board showing stock information at a brokerage house in Nanjing By Swati Pandey
SYDNEY (Reuters) – Asian stocks withdrew from nearly 8 months high on Thursday and dollars eased as European and US central banks strengthened investor concerns about global economic prospects and trade protectionism.
In a recent escalation of trade tensions, US President Donald Trump has threatened new tariffs on goods from the EU, although the trade dispute between China and the United States remains unresolved.
MSCI's widest index of Asia-Pacific shares outside Japan fell 0.3 percent after four fast-paced gains with the highest since August.
Chinese stocks were subdued by the blue chip CSI300 of 1[ads1] percent while Hong Kong stumbled 0.6 percent.
Australian stocks also lost ground, the pressure of political uncertainty after the country's prime minister called a national election on May 18.
Japan fell 0.3 percent when the yen was strengthened.
"There has been another mixed day in the market with investors still searching for the next push one or the other, and most products are trading at known levels," said Nick Twidale, an analyst in Sydney at Rakuten Securities Australia. 19659004] "Traders continue to operate in a" wait and see "mode as they look for the next opportunity in a cautious market. Two major event risks are now behind us with the ECB and the Fed. "
On Wednesday, the European Central Bank (ECB) held its loose political stance and warned that the threats to global economic growth were left. The ECB has already pushed back its first interest rate hike after crisis, and President Mario Draghi increased the possibility of more support for the demanding eurozone economy if the downturn continued.
"If we expect euro zone growth to continue to disappoint in the coming months, we believe that the political decision-makers in the ECB will adopt a even more accommodating attitude, analysts at Capital Economics say in a note.
GREAT RETREAT & # 39;
Separate data showed US consumer prices increased most in 14 months in March, but underlying inflation remained good against a backdrop of slowing global economic growth.
Minutes of a March 19-20 meeting of Federal Reserve decision makers showed that they agreed to be patient about any changes in interest rate policies that they saw the US economy weathering a global downturn without a recession over the next few years.
US Treasury returns oscillated in response, reinforcing expectations that the Fed would keep prices stable or possibly cut by the end of the year.
These expectations helped European and American stocks overnight. On Wall Street, the increasing 0.35 percent, Nasdaq managed 0.7 percent while it was barely changed.
"There were major concerns last year that central banks globally are moving towards policy tightening. These fears have reversed now," said Shane Oliver, chief economist at AMP.
"It's a reasonably positive backdrop for stocks," Oliver added. "The complication is the growth dampening."
However, he added some encouraging economic signs that were now emerging, aided by the great withdrawal of the policy of global central banks, fiscal stimulus in China and progress in trade talks between Chinese and US trade
In currencies, the British pound was slightly higher at $ 1.3099 after European leaders agreed to extend the deadline for the UK to leave the Union until the end of October, and stave off a potential crash out of the block on Friday without a divorce agreement.
Sterling has stayed in a triangular pattern between $ 1,2945 and $ 1,3380 over the past month or so.
Fell for a fourth straight day at 96,931 against a basket of large currencies. The euro was barely changed to $ 1,1277, while the Japanese yen was stopped after three days of winnings at. 111.04.
In goods, futures launched 16 cents to $ 71.57 per barrel. dipped 27 cents to $ 64.34.
Gold hovered near a two-week peak on Thursday at $ 1,307.03 an ounce.
