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Asian equities fell as general sentiment deteriorated on issues such as trade concerns, the Italian budget for 2019, higher interest rates in the United States and worries about growth in China, which led to a fall in Chinese equities during the previous session.
At the beginning of the trading day, the widest index of the MSCI index, composed of Asia Pacific shares out of Japan, was 0.4% lower as a result of losses on Wall Street during the night.
The Dow Jones Industrial Average fell 1.27%, the S & P 500 1.44% and the Nasdaq Composite 2.06%.
Australian stocks fell 0.6%, while Japan's Nikkei stock index fell 1.7%.
"Markets continue to digest the combination of rising US rates, ongoing trade tensions and concerns about Chinese growth," ANZ analysts said in a note.
Thursday, the flight to safe haven partially offset the rise in US Treasury yields, prompted by concerns about the rate of interest rate increases of the US Federal Reserve.
Earlier in Asia on Friday, the 10-year yield was above 3.1767%, against 3.155% in the United States on Thursday.
The two-year yield, which is sensitive to expectations of higher federal funds rates, rose slightly, reaching 2.8741%.
Investors expect China's GDP data for the third quarter, expected Friday, to indicate a slowdown in the economy. The figures should show the slowest pace of growth since the global financial crisis as the trade war worsens with the United States.
The Chinese premier said this week that the country's economy is under further downward pressure, but said the government will take targeted measures to stabilize growth.
The Shanghai Composite benchmark reached its lowest level in almost four years on Thursday, before closing down 2.9%, held back by the fall in energy values hit by cheaper oil and by Widespread concern that falling stock prices could lead to soaring margin calls.
Chinese authorities have taken action in recent days to ease market pressure, including asking creditors of a Beijing company to avoid forcing margin calls.
In their latest declaration of trade war, the United States asks a dispute resolution committee of the World Trade Organization to review tariffs imposed by China, the European Union, Canada and Mexico in retaliation for US tariffs on steel and aluminum.
The European Commission said Thursday that a draft budget of Italy for 2019 was in "particularly serious non-compliance" with EU rules, paving the way for an eventual rejection without precedent the country's budget plan.
The euro remained stable at $ 1,1454, after shedding 1.3% in one month, while the US dollar index, which follows the greenback against a basket of six major rivals, was up to 95,940.
The US dollar was up 0.04% against the yen at 112.23.
Oil prices rose after falling on Thursday. US crude increased 0.3% to 68.86 USD per barrel and Brent to 79.56 USD per barrel, also up 0.3%.
Gold also advanced, with spot gold trading at $ 1,225.56 per ounce.
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