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By Hideyuki Sano
TOKYO (Reuters) – Relations between the two countries were affected by trade frictions between China and China on Tuesday as the pound sterling flirts with two-and-a-half-year lows as Prime Minister Boris Johnson said 39; he could call an election to thwart the efforts of legislators Brexit ideal.
The widest MSCI index of Asia Pacific shares outside Japan () was down 0.2% at the start of the session while Japan's Nikkei () was unchanged .
US bond yields were little changed at the start of trading on Tuesday after a Monday holiday in the United States. The yield on 10-year US Treasury bonds remained unchanged at 1.506% ().
Global equities face barriers due to opposing tariffs by Washington and Beijing.
The United States began imposing 15% tariffs on a variety of Chinese products on Sunday, and China imposed new duties on US crude oil, the latest escalation of their trade war.
Although US President Donald Trump said the two sides will meet again for talks later this month, tensions have shown little sign of decline.
China said Monday it filed a lawsuit against the United States with the World Trade Organization for US tariffs, denouncing the latest tariff actions as a violation of the consensus reached by Chinese and US leaders at the time. A meeting in Osaka.
"We have so many problems in the world, starting with the US-China trade war and Brexit, but investors seem to get used to being exposed," said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset. Management.
"Nobody really thinks that Washington and Beijing will solve the problems, but as long as the US economy continues to move forward, stock prices will have a limited disadvantage," he said.
The US manufacturing survey by the Institute for Supply Management (ISM), expected Tuesday at 14:00 GMT, is a major goal for investors.
Although manufacturing activity in the United States has slowed in recent months, the ISM index has so far remained above 50, separating contraction and growth.
On the forex market, the pound sterling traded at $ 1.2063, which changed little on Tuesday, after falling 0.85% on Monday. The currency was barely half a cent above its lowest level of $ 1.2015 reached on August 12.
Prime Minister Johnson implicitly warned the legislator on Monday that he would seek to be elected when he tied hands with Brexit, thus excluding any additional delay from Britain's European Union. .
The UK economy has already been subject to uncertainty regarding Brexit. According to the IHS Markit / CIPS survey, the UK manufacturing sector had the lowest manufacturing rate last month, the highest rate in seven years.
The situation is not much better in Europe and the European Central Bank is likely to lower interest rates next week to cushion the shock by putting pressure on the euro.
The common currency fell to a two-year low of $ 1.09555 () at the start of trading on Tuesday.
The offshore also dropped to a record low of 7.1975 for a dollar while the Australian dollar hit $ 0.67145, not far from a $ 10.66775 trough reached last month.
The Reserve Bank of Australia should keep its policy on hold on Tuesday, although many market players are expecting interest rate cuts next month.
Argentine bond prices fell to record lows on Monday and the official and black market pesos diverged after the country imposed capital controls in an effort to put an end to the currency boom that heightened the risk of default.
The peso closed up 0.88% on the official markets, but from 0.79% on the black market to 63.5% on the dollar.
Oil prices have also been affected by concerns over the trade war. US crude WTI (West Texas Intermediate) () lost 54.68% to $ 54.68 per barrel.
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