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By Andrew Galbraith
SHANGHAI (Reuters) – Asian stocks rose slowly and safe haven badets sold off some gains overnight, as investors faltered after a volatile session on Wall Street, but deeper concerns about growth limited Improvement of risk sentiment.
Investors' attention shifted to monetary policy this week, with the Australian central bank virtually convinced of bringing interest rates down to a new lows at its Tuesday meeting, and India also plans to calm down on Thursday.
Most equity markets in the region put an end to Wall Street's nocturnal weakness, which resulted in Nasdaq in correcting territory. In the beginning of trade, MSCIThe largest index of Asia-Pacific equities outside Japan rose by 0.17%.
"The climate remains gloomy and the widespread weakness of the purchasing managers' indices, released on Monday, has contributed to the worries about global growth prospects," badysts said. ANZ says in a morning note.
US manufacturing growth slowed further in May, reaching its weakest pace in over two and a half years, defying a modest rebound.
Australian equities rose 0.24% against the expected interest rate cut by the Reserve Bank of Australia, which hopes to boost growth.
Japan's Nikkei, however, lost 0.29% at the start of the gains.
Monday, the Nasdaq fell 1.61% to 7 333.02, a decline of more than 10% from its May 3 record, fearing that US antitrust regulators will target Alphabet, Facebook and Amazon.com.
The Dow Jones Industrial Average gained 0.02% to 24,819.78 and the S & P 500 lost 0.28% to 2,744.45.
Tuesday's cautious stock gains were accompanied by a 10-year US Treasury return, the benchmark, which fell to 2.0607%, its lowest level since September 2017. Tuesday morning in Asia , 10-year bonds yielded 2.0934%, up from a US close of 2.081% on Monday.
The two-year yield rose to 1.8597% on Tuesday from 1.84% in the United States. Yield had fallen earlier, reflecting the growing expectations of a more accommodating Federal Reserve. St. Louis Fed President James Bullard said on Monday that a reduction in US interest rates "could be justified soon", because of the risks to global growth posed by trade tensions and the weakness of US inflation.
Other signs that investors are still nervous, gold rose 0.12% to $ 1,326.41 an ounce, just after a three-month high, and the Japanese yen strengthened, the dollar yielding 0.18% against the Asian refuge at 107.87.
"Risk aversion has also been observed with the end of the exchange of wallets as markets understand that it is unlikely that the strategy of limiting US technology towards China is reversed, "said Jefferies badysts in a note.
"In the short term, positioning has become so bearish that a" ceasefire "could trigger a risk rally."
The euro was stronger by 0.08% to 1.1279 dollar, while the dollar index, which tracks the greenback versus a basket of six major rivals, was up 0, 05% to 97.186.
Crude prices rebounded after falling on Monday because of growing concern over trade.
US crude oil rose 0.3% to $ 53.41 a barrel and Brent crude rose 0.18% to $ 61.39 a barrel.
(Report by Andrew Galbraith, edited by Sam Holmes)
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