© Reuters. FILE PHOTO: Market prices are reflected in a glass window at the TSE in Tokyo
By Hideyuki Sano and Daniel Leussink
TOKYO (Reuters) – Asian stocks fell on Thursday after the United States hit China's telecommunications giant Huawei with severe sanctions and threats.
to further tighten the trade relations between China and the United States.
MSCI's broader Asia-Pacific stock index outside Japan fell 0.2%, and is not far from its lowest level since the end of January.
Japan fell 0.6%, with banks affected by weak gains, while South Korean stocks also lost 0.6% and Chinese blue chips fell 0.2%.
Asian stocks had stabilized in the initial trade with the news that US President Donald Trump planned to delay tariffs on car imports, providing much needed relief to markets affected by an outbreak of commercial and weak tensions. economic data of the United States and China.
Against the downtrend, Australian equities remained stable, as weaker-than-expected local jobs data supported the expectations of a central bank rate.
The US Department of Commerce UU He said late Wednesday that he was adding Huawei Technologies Co Ltd and 70 affiliates to his "Entity List," a measure that prohibits the company from acquiring components and technology from US firms. UU Without government approval.
"There has been a growing disconnect between the Asian and American markets in the last six months," said Nick Twidale, chief operating officer of Rakuten Securities Australia in Sydney.
"The US markets kept afloat with President Trump, possibly withdrawing car rates in Europe and Japan, but in reality Asian markets have clung to the fact that they are not giving in to the trade war against China, "he added.
On Wednesday, Wall Street shares extended a rebound, with an increase of 0.58% and the broader MSCI global stock index rebounded from a two-month low on Tuesday. ()
Also on Wednesday, less than a week after Washington imposed higher tariffs on China's imports of 250 billion dollars, US Treasury Secretary Steven Mnuchin said he will probably travel to Beijing soon to continue negotiations. commercial with their Chinese counterparts.
The positive evolution of overnight trading raised the risk sentiment that had been cushioned earlier in the session by weak economic data.
China reported surprisingly weaker growth in retail sales and industrial production in April, and retail sales in general recorded the slowest increase since May 2003.
In the United States, retail sales unexpectedly fell in April as families reduced their purchases of motor vehicles and a range of other goods, while industrial production fell 0.5% in April, the third fall this year.
PRICES IN A RATE COURT
Weaker data underpinned the prices of US bonds, which boosted yields even more.
The yield on 10-year US Treasury bonds fell to 2.371%, close to its 15-month low of 2.340% on March 28.
The yield of the two-year bonds reached a minimum of 15 months of 2.139% on Wednesday and the last was 2.1616%.
Funds futures for the Fed funds are at full prices in a rate cut by the end of this year and more than 50 percent chance of movement for September.
"The markets are slowly advancing in price fixing in a rate cut, which is a radical change from the previous year, when the consensus was three to four rate hikes per year," said Akira Takei, manager of Asset Management One bond funds.
In the currency market, the Australian dollar reached its lowest level since early January, after a fall in full-time jobs in the country, the central bank could be forced to lower rates soon to stimulate the economy.
"National data is starting to appear, we also have an increase in global concerns," said Rakuten & # 39; s Twidale.
"Now we will raise expectations that we will have a cut in June or at the meeting (of the Reserve Bank of Australia) after that."
Against the yen, the dollar fell a tenth of a percentage to 109.49.
The euro rose 0.1% to $ 1.1208.
Oil prices increased as tensions in the Middle East increased, affecting world supplies despite an unexpected accumulation of inventories.
it went up 0.5% to $ 72.10 per barrel, while the U.S. West Texas Intermediate (WTI) reached $ 62.35, also a half percent more.
The United States withdrew staff from its embassy in Baghdad on Wednesday due to apparent concern over perceived threats from Iran.
Sabotage of oil tankers, for which no one took responsibility, and Saudi Arabia's announcement on Tuesday that armed drones impacted two of its oil pumping stations have raised concerns that Washington and Tehran may be moving towards conflict.
Gold fell to $ 1,295.6 per ounce.