Asian stocks bump, sterling at the mercy of another vote



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SYDNEY (Reuters) – Asian stocks fell on Wednesday as markets were at risk, as the pound sterling waited for its fate before a decisive parliamentary vote on Brexit.

FILE PHOTO: A woman shows an electronic board indicating the stock price while she poses in front of him after the New Year's opening ceremony at the Tokyo Stock Exchange (TSE), organized to wish the success of the Japanese stock exchange in Tokyo. Japan, January 4, 2019. REUTERS / Kim Kyung-Hoon

The broadest MSCI index of Asia-Pacific equities outside Japan. The MMIAPJ0000PUS slowed by 0.45% in idle trade.

Japan's Nikkei .N225 led the decline with a 1.2% drop, with data showing domestic machinery orders fell in January at the fastest pace in four months.

Shanghai .CSI300 blue chips slipped 0.5% after two days of gains. E-Mini futures for the S & P 500 ESc1 were down 0.2% and the gap between bettors indicated opening losses for major European stock exchanges.

Risk appetite deteriorated after UK legislature crushed Prime Minister Theresa May's divorce agreement with the EU, forcing parliament to decide in the coming days to support a Brexit without ask for a late last minute.

Legislators voted against 391 versus 242 the amended Brexit deal in May, while his last-minute talks with EU leaders Monday to appease the concerns of his critics eventually proved unsuccessful.

On Wednesday, Parliament will decide on the opportunity not to leave the EU without any agreement. If that fails, another vote on Thursday will decide whether to extend the deadline for Brexit.

"Today 's vote also seems to go against the government," said David de Garis, director of the economy and markets at National Australia Bank.

"Assuming that Thursday's vote finds a majority in favor of an extension – as can be expected – it will probably comfort the pound," he added. "It's still a rapidly changing environment, with political pressures at naturally understandable levels."

The pound could do with a little comfort after a few wild sessions. It was last at $ 1.3089 =, having been as high as $ 1.3296 and as low as $ 1.3017 so far this week.

Slowdown in US inflation

On Wall Street, Boeing Co (PROHIBIT) lost 6.1% more for its biggest drop in two days since June 2009, as more and more countries have locked up the company's 737 MAX 8s after Sunday's crash in Ethiopia, the second deadly crash month.

Boeing's decline pushed Dow's .DJI down 0.38%, while the S & P 500.SPX gained 0.30% and Nasdaq .IXIC gained 0.44%. [.N]

A weak US inflation report for February burned bonds while tarnishing the dollar. The annual rise in consumer prices has slowed to its lowest level since September 2016, at 1.5%.

The data has simply heightened the Federal Reserve's interest rate expectations and may even seem more accommodative at its monetary policy meeting next week.

10-Year US Dollar Yields US10YT = The real rate of return actually fell to its lowest level in 10 weeks, at 2.596%, while the dollar slowed to 97,000 .DXY against a basket of currencies.

The dollar drifted to 111.28 JPY =, while the euro marked the pace at 1.1287 USD = after rebounding from last week's low of 1.174 USD over 20 months. [USD/]

In the commodities markets, the depreciation of the dollar allowed gold to reach its highest level in two weeks and last reached $ 1,305.09 per ounce XAU =.

Oil prices rose slightly following tightening global supply after a Saudi official announced that the kingdom was planning to cut its oil exports in April, while the US government was reducing its growth forecasts of domestic production of crude. [O/R]

US crude CLc1 was up 30 cents at $ 57.17 a barrel, while Brent LCoC1 futures added 21 cents to $ 66.88.

Wayne Cole story; Edited by Darren Schuettler

Our standards:The principles of Thomson Reuters Trust.

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