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© Reuters. PHOTO FILE: A man walks past a screen showing the current movements of Nikkei stock outside a broker in Tokyo, Japan
By Shinichi Saoshiro
TOKYO (Reuters) – Asian stocks followed Wall Street's slide on Wednesday, as investors opted for safe-haven state bonds, driven by fears of global growth as well as eventual trade agreement between the United States and China seemed to cancel.
Beijing announced on Tuesday that Chinese Vice Premier Liu He would travel to Washington on Thursday and Friday for trade talks, with the ultimate goal of rescuing an agreement that would avoid a sharp increase in tariffs on Chinese products ordered by the president. American Donald Trump.
On Wednesday, pan-European trade was down 0.09% in early European trade, 0.05% in Germany and 0.03% for futures.
The MSCI's broadest index of Asia-Pacific equities outside Japan, which had hit its lowest level since late March, fell 0.55%.
The index hit a nine-month high three weeks ago, helped by strong Chinese economic data and the view that China-US trade talks are progressing and coming to an agreement.
The retiree 0.1 percent.
Australian stocks fell 0.4%, South Korea 0.3% and Japan 1.9%.
"The stock market had an optimistic view of US-China trade, likely anticipating an end to the negotiations, but the sudden resurgence of trade tensions forced it to face uncertainties, such as the risk that unexpected turn, "writes strategists at Goldman Sachs (NYSE :).
Wall Street shares slid Tuesday with a loss of 1.65% and a loss of 1.8% of US-China trade concerns.
Global equities had a difficult start to the week after Washington on Monday accused Beijing of reversing its commitments made in trade talks. This follows President Donald Trump's unexpected declaration on Sunday that he would increase customs duties on Chinese goods by $ 200 billion from 10% to 25%.
"From the stock market point of view, we are focusing immediately on the planned two-day talks between US and Chinese officials," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.
"However, it is hard to imagine that the two sides are resolving their differences in just two days of talks, and markets may have to start taking trade conflict into consideration as a long-term factor."
Government bond prices jumped and their yields fell sharply as investor panic slumped in the growth asset markets.
The 10-year benchmark rates for US bonds, German bonds and Japanese government bonds (JGBs) dropped to their lowest level in a month.
Japan's 10-year yield sank deeper into negative territory and was minus 0.055%.
On the foreign exchange markets, the dollar fell for the fourth day and reached its lowest level in six weeks at 109.905 yen.
The Japanese yen, perceived as a haven of peace, often wins over peers in times of market turbulence and political conflict.
The euro was a little higher at $ 1,1204 after finishing the previous day almost flat, and holding in a tight range during the last few sessions.
The New Zealand dollar was down 0.2% to 0.6560 USD after the country's central bank lowered interest rates to a record low of 1.5%, down from 1.75% Wednesday, due to the weakness of domestic activity and employment difficulties.
The had previously dropped to $ 0.6525, its lowest since November 2018.
The Australian dollar edged up 0.2% to USD 0.7022.
The Reserve Bank of Australia kept its key rate unchanged at 1.5% Tuesday, defying expectation of a reduction.
West West Texas Intermediate's futures futures rose 0.78% to 61.88 dollars a barrel after losing 1.36% on Tuesday.
prices had fallen as renewed US-China trade concerns fueled worries about slowing global growth slowing demand for commodities. But relatively tense market conditions due to US sanctions against Iran and Venezuela provided underlying support for oil prices.
Futures contracts rose 0.54 percent to 70.26 dollars a barrel, after falling back to a trough of one month to 68.79 dollars on Monday.
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