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* MSCI Asia excluding Japan -0.3%
* China loses 1.2%
* Australian action up 0.1% on the RBA's decision
* Asian stock exchanges: tmsnrt.rs/2zpUAr4
By Andrew Galbraith
SHANGHAI, June 4 (Reuters) – Asian stocks fell on Tuesday, following a volatile session on Wall Street, deemed weak by economic indicators and by the intensification of the Sino-US trade war.
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.
At the same time, comments by the US Federal Reserve have raised hopes for the US central bank to move closer to reducing rates, as well as the investigation closely monitored by US factories.
"Unless there's a breaker, a Fed cut or a stimulus boost from China or the European Central Bank later this week … stock prices and bond yields will continue to go lower, "said McKenna Macro strategist Greg McKenna.
The ECB will hold its next policy meeting on Thursday and should keep the parameters unchanged, although there is more and more speculation that it could switch to more dovish bases.
Asian stock market losses on Tuesday followed Wall Street's night falls, which led to Nasdaq's fall into correcting territory. The largest MSCI index of Asia-Pacific equities outside Japan declined 0.3%, after rising to 0.18% previously.
The broad index was pulled down by Chinese stocks. The index of the best Chinese companies, the CSI300, was down 1.17%, and the Hang Seng lost 0.65%.
Kospi Seoul dropped 0.16%.
Defying the regional liquidation, Australian equities rose by 0.1% compared to the expected reduction in interest rates by the Reserve Bank of Australia, the bank hoping to boost growth.
Japan's Nikkei dropped 0.42% at the start of the gains.
Echoing fears of a slowdown, growth in the US manufacturing sector slowed in May to its weakest pace in over two and a half years, defying all expectations of a moderate rebound.
The hostile rhetoric between Washington and Beijing continued on Monday, as the administration of US President Donald Trump said China was pursuing a "blame game" in its recent public statements.
Fears from more general investors add fears that US antitrust regulators could target Alphabet, Facebook, Apple and Amazon.
The US government's news to investigate the tech giants dragged down technology stocks on Monday, driving down the Nasdaq by 1.61 percent to 7,333.02. The decline had the effect of reducing the index by more than 10% from its May 3 record.
The S & P 500 lost 0.28% to 2744.45 points and the Dow Jones Industrial Average gained 0.02% to 24,819.78%.
BULLARD COMMENTS
US Treasury yields rose slightly on Tuesday but remained close to the recent lows. US 10-year bonds sold 2.1021%, up from 2.081% in the United States, after reaching their lowest level since September 2017 on Monday.
The two-year yield was 1.8837%, compared to 1.84% in the United States.
The two-year yield decline reflects the growing expectations of a more accommodating Fed.
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.
Gold was down 0.11% at $ 1,323.27 an ounce, but remained close to the three-month highs, and the Japanese yen firmed, with the dollar falling 0.05% from the hut Asian at 108.01.
"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 the short term, positioning has become so bearish that a" ceasefire "could trigger a risk rally."
The euro was 0.11% stronger at $ 1.1225, while the dollar index, which tracks the greenback versus a basket of six major rivals, was up 0, 03% to 97.175.
Crude prices skyrocketed, resuming their declines after a brief rebound following growing concerns over trade.
US crude fell 0.24 percent to 53.12 dollars a barrel and crude oil fell 0.42 percent to 61.02 dollars a barrel. (Report by Andrew Galbraith, edited by Sam Holmes)
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