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Home / Business / Hong Kong leads Asian stocks lower, oil near five months decline

Hong Kong leads Asian stocks lower, oil near five months decline



TOKYO (Reuters) – Asian stocks were lowered on Thursday when the Hong Kong market fell in other consecutive sessions after a day of massive street protests, while oil prices flirted with five-month decline due to higher US commodity stocks and poor demand prospects .

FILE PHOTO: A woman points to an electronic board showing the stock prices that she is standing in front of the board after the New Year's meeting on the Tokyo Stock Exchange (TSE), held to wish the success of Japan's stock market, in Tokyo, Japan, January 4, 2019. REUTERS / Kim Kyung-Hoon

Hope that the United States and China will make a deal on the sidelines of a group of 20 summits in Osaka on June 28-29, have been fading, also hurting feelings and driving bonds down.

"There is not even a plan for ministerial level bilateral meetings before the G20 summit. You cannot expect any major deal," said Hirokazu Kabeya, chief global strategist at Daiwa Securities.

MSCI's widest Asia-Pacific index Shares outside Japan fell as much as 1%, as Hong Kong's Hang Seng index fell 1.5% after Wednesday's 1.7% fall.

Sales pressure in Hong Kong came after a mass demonstration against legislation that would allow citizens to handed out to China triggered a mass protest and some of the worst troubles seen in the territory since Britain returned it to Chinese rule in 1997.

Japan's Nikkei lost 0.8% while US equity futures lost 0.3% in Asia, after small losses last day when S & P 500 slid 0.20%

Oil hovered near five-month downturns, pushed by another unexpected rise in US crude stocks, and the poorer outlook for demand due to a long-term outlook g trade war between China and the United States.

Burnt raw futures barely moved to $ 60.06 in early trading after a 3.7% slide on Wednesday at $ 59.97 per barrel, the international benchmark's lowest closed since January 28.

U.S. West Texas Intermediate Raw Futures stood at $ 51.12 per barrel, compared to the previous day's down at $ 50.72 per barrel, the weakest settlement since January 14.

"It's a bit of a mystery that oil prices are so low when global stock prices remain relatively supported. But one thing is certain. Weaker oil prices will dampen inflation and speed up cut expectations," says Daiwa's Kabeya.

Government data showed on Wednesday US consumer prices barely increased in May, with core annual inflation decreasing to 2.0%, compared to a peak of 2.4% in July last year, and to the growing expectations of a Federal Reserve decline over the coming months

Investors will look at what Fed decision makers will say after their next policy meeting June 18-19, with Fed Funds rate futures rates in a 25 basis point cut for the subsequent policy review on July 30-31

De 10-year US government bonds decline to 2.103 percent, close to Friday's 2,053 percent, the lowest level since September 2017.

Bond yields fell in Asia. o its lowest levels since August 2016, with a 20-year yield down 2.5 basis points from 0.220 percent.

In Australia, long known for its high-yielding currency, returns fell to record low, with three-year returns now falling below 1 percent.

In the foreign exchange market, the yen rose 0.25% to $ 108.25, as the risk felt soured while the Australian dollar fell 0.2% to $ 0.6913.

The euro was slightly changed to $ 1,1293, after taking a hit on Wednesday after US President Donald Trump said he considered sanctions over Russia's Nord Stream 2 natural gas pipeline project and warned Germany against relying on Russia for energy.

The British pound is at the back of the foot after British legislators defeated an attempt led by the opposition party to attempt to block a non-agreement Brexit by taking control of the parliamentary agenda of the government.

Sterling picked up $ 1,268, not far from this week's lowest $ 1,2653.

Editing by Simon Cameron-Moore

Our Standards: Thomson Reuters Trust Principles.

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