TOKYO (Reuters) – Asian stocks fell on Wednesday, dragged down by losses on Wall Street when the technology sector stuttered again after a brief rebound, while the dollar gave way to lower US yields. UU Long-term.
Weaker copper also verified the sentiment risky. The Nikkei .N225 of Japan fell 0.9 percent with non-ferrous metal producers .INFRO.T suffered heavy losses after copper fell overnight to a two-month low. [.T]
MSCI's broader index of Asia and the Pacific shares out of Japan. MIAPJ0000PUS fell 0.9 percent.
Australian stocks lost 0.35 percent, South Korea KOSPI .KS11 lost 0.65 percent and Shanghai .SSEC fell 0.7 percent.
The S & P 500 .SPLRCT information technology index barely increased overnight, as it yielded much of the intraday earnings of 1.4 percent. The best-performing sector of the year fell about 4 percent over the last week, and investors shifted money to banks, retailers and other stocks that could benefit more from the tax cuts promised by US President Donald Trump. [.N]
That dragged the S & P 500 .SPX down for the third consecutive session during the night. Dow. DJI and Nasdaq .IXIC also withdrew.
"The decline in US equities coincides with the taking of profits by investors before they close their books by the end of the year." Much of that year-end showcase seems to have taken place at the end of the year. emerging market equities, "said Kota Hirayama, senior emerging market economist at SMBC Nikko Securities in Tokyo.
"The main focal point for emerging market equities is how the US yields move towards the end of the year." The Federal Reserve's monetary policy stance for next year is closely watched because to its impact on the US yields and the various equity markets. "
The futures prices of the federal funds showed that investors see an increase in rates in the Federal Reserve. -13 meeting as a deal made with much of the focus now on the outlook for rates in 2018 and beyond.
Two-year Treasury yield US2YT = RR peaked at nine years overnight, driven by the Fed's tougher policy path and expectations that the United States Congress will approve the tax reform legislation.
But 10-year Treasury yield US10YT = RR fell overnight, further flattening the yield curve. The curve flattens out as investors see a limited margin for long-term inflation in the United States.
The dollar fell, weighted by the fall in US yields UU Long-term. The dollar index against the six major currencies fell 0.1 percent to 93,287. DXY
The greenback lost 0.2 percent to 112,330 yen JPY = and the euro suffered a small change to $ 1,1830 = after losing 0.35 percent the previous day.
The pound stood at $ 1.3422 GBP = D3 for a loss of 0.15 percent, having received a minor blow after Sky News reported a frustrated plan to assassinate British Prime Minister Theresa May.
Sterling had fallen to only $ 1.3370 on Tuesday for disappointment after May failed to reach an agreement to open talks on free trade after Brexit with the European Union. [GBP/]
Bitcoin continued its relentless advance, reaching a new record of $ 12,205.46 in the BitStamp BTC = BTSP exchange.
In commodities, US crude oil futures CLc1 fell 0.45 percent to $ 57.36 a barrel after data from the US Petroleum Institute showed stocks of US gasoline and distillates rose more than expected last week. [O/R]
Brent crude LCCc1 lost 0.4 percent to $ 62.60 a barrel, although it has risen more than 40 percent since June, supported by a supply cut led by OPEC and Russia, which is expected to last 2018.
Copper at London Metal Exchange CMCU3 rose 0.2 percent to $ 6,557 per ton after falling to a two-month low of $ 6,507.50 overnight.
Base metals were affected by a combination of the dollar increase earlier in the week in the hopes of US tax reform and a technical liquidation derived from an increase in inventories. [MET/L]
Shinichi Saoshiro report; Editing by Shri Navaratnam