Britain seeks new prime minister

By Shinichi Saoshiro

TOKYO (Reuters) – The easing expectations of large central bank policies such as the Federal Reserve backed global equities on Tuesday as the British pound collapsed as Britain geared up for a new round. Prime Minister who could pave the way for an exit without negotiation of the European Union Union.

MSCIAsia-Pacific's broader equity index outside Japan <.MIAPJ0000PUS> progress of 0.02%.

Nikkei from Japan <.N225> increased by 0.25%.

Australian stocks <.AXJO> added 0.15% and South Korea KOSPI <.KS11> gained 0.2%.

The S & P 500 <.SPX> Overnight, it rose slightly, reaching a record level, supported by expectations that the Federal Reserve would reduce interest rates at its political meeting July 30 and 31.[.N]

European shares <.STOXX> The European Central Bank (ECB) also saw its rates drop 10 basis points Thursday.

But with the relaxation of central banks no longer a new theme, market gains have been limited.

"The likelihood of a softening on the part of the Fed is favorable to equity markets, but the likelihood of a reduction of the rate of 25 basis points has already been taken into account for the most part," he said. said Soichiro Monji, senior strategist at Sumitomo Mitsui DS Asset Management.

In the currency markets, the pound <GBP= D4> was a contact less than $ 1.2477 and was heading towards his third session of losses.

Sterling was under pressure because of the likelihood that eurosceptic Boris Johnson will become the next British prime minister.

The result of the British elections, which have lasted for several weeks, will be announced Tuesday. Johnson should have beaten Foreign Minister Jeremy Hunt. The winner will become Prime Minister on Wednesday.

Some investors fear that Johnson will not be able to take Britain out of the European Union on October 31 without a trade deal to appease members of his conservative party.

The other main currencies were mastered before ECB and Fed meetings.

The dollar index <.DXY> against a basket of six major currencies up 0.05% to 97.314.

The euro remained stable at $ 1,1207 <EUR=> and the dollar was almost unchanged at 107.895 yen.

Crude oil prices fell, losing momentum after two days of significant gains generated by heightened tensions in the Middle East.

US futures contracts down 0.2%, to 56.11 dollars a barrel, after gaining 0.1% overnight due to the possibility of supply disruptions after Iran's seizure of a British tanker at the end of last week. [O/R]

Raw Brent was at $ 63.26 after rising 1.2% the day before.

(Report by Shinichi Saoshiro, edited by Kim Coghill)