Asian shares fall while China and South Korea’s weakness weigh, the euro reaches a maximum of two months


TOKYO (Reuters) – Asian stocks recovered modest previous gains and fell from a decade high on Monday, affected by weak markets in China and South Korea, while the euro hit a two-month high. against the dollar.

People walk past an electronic whiteboard showing Japan's Nikkei average out of a brokerage in a commercial district in Tokyo, Japan August 9, 2017. REUTERS / Kim Kyung-Hoon

The largest MSCI index Asian and Pacific shares outside Japan rose early in Friday's session on Wall Street gains, but it was the last decline of 0.65 percent.

The index rose to its highest level since 2007 on Thursday, as the stock markets have had strong support this year thanks to corporate earnings that rise thanks to an improving global economy.

South Korea's KOSPI fell 1.3 percent as technology shares fell after an badyst report suggested that the memory chip "supercycle" would soon fade, led by Samsung Electronics. [.KS]

The strength in technology stocks pushed the S & P 500 and the Nasdaq to reach record levels on Friday, but observers noted that demand for technology-related products such as semiconductors could decrease.

"Global semiconductor sales expanded substantially in the third quarter, but demand could slow in the fourth quarter in response to this strong increase, and there are warning signs of reversals in price trends," Yoshimasa wrote. Maruyama, chief market economist of SMBC Nikko Securities in Tokyo.

Shares in Shanghai fell 0.7 percent, reaching a three-month low.

Chinese stocks were already in an unstable situation after last week when investor confidence was weakened by the government's new steps to reduce financial risks and a defeat in the bond market.

Japan's Nikkei reduced previous gains and fell 0.3 percent.

In currencies, the euro traded very little at $ 1.1922 after rising to $ 1.1946 before, its highest level since September 22.

The common currency rose on impulse from Friday after data showed that German business confidence reached a record, a sign that the European Union's biggest economy is on its way to a boom.

The euro was also helped by the agreement of the German Social Democrats on Friday to hold talks with Chancellor Angela Merkel on the renewal of her outgoing coalition government.

Political uncertainty in Germany stemming from Merkel's apparent inability to form a ruling coalition in the talks hit the euro last week.

The strength of the euro kept the dollar index against six major rivals at 92,805, not far from a two-month low of 92,675 polled Friday.

The dollar lost 0.15 percent to 111,375 yen.

The Australian dollar fell 0.3 percent to $ 0.7597 after rising almost 0.75 percent the previous week.

The New Zealand dollar rose 0.1 percent to $ 0.6855, recovering some of Friday's losses.

U.S. Crude futures rose to a 2-1 / 2-year high of $ 59.05 per barrel on Friday. The continuous closure of a US gas pipeline US-Canada caused concerns about the offer, while the prospect of OPEC extending production cuts when the group meets this week was also a good omen for oil. [O/R]

However, US crude UU It fell 24 cents to $ 58.71 per barrel, while Brent crude dropped 6 cents to $ 63.80 per barrel.

Shinichi Saoshiro's report; Edition by Eric Meijer

Our standards: The principles of trust of Thomson Reuters.
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