Stocks slipped
and bonds rose in Asia on Thursday, with risk appetite soured by signs
the Federal Reserve might start paring its king-sized asset holdings
later this year just as the chance of early U.S. fiscal stimulus faded
further.
Futures
markets pointed to opening falls of between 0.5 percent and 0.7 percent
for the major European bourses while S&P 500 futures ESc1 eased 0.2
percent.
Investors were also wary ahead of a potentially tense meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping, the first between the world's two most powerful leaders.
Topping the agenda at Trump's Mar-a-Lago resort in Florida will be whether he makes good on his threat to use U.S.-China trade ties to pressure Beijing to do more to rein in its nuclear-armed neighbor North Korea.
Nerves were not helped when U.S. Pacific Fleet Commander Admiral Scott Swift said any decision on a pre-emptive attack against North Korea would be up to President Donald Trump.
Lingering fears of a possible trade war kept Asian markets on edge and MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS lost 0.8 percent.
Japan's Nikkei .N225 fell 1.4 percent to its lowest since early December. Australia's index lost 0.5 percent.
Shares in Shanghai .SSEC made marginal gains as a private survey of China's service sector showed activity expanded at its slowest pace in six months in March.
Sentiment had been bruised overnight when U.S. House of Representatives Speaker Paul Ryan said there was no consensus on tax reform and it would take longer to accomplish than healthcare.
Markets have risen in recent months in part on speculation fiscal stimulus would boost U.S. growth and inflation.
Minutes of the Fed's last meeting also showed most policymakers thought the U.S. central bank should begin trimming its $4.5 trillion balance sheet later this year, much earlier than many had expected.
Investors were also wary ahead of a potentially tense meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping, the first between the world's two most powerful leaders.
Topping the agenda at Trump's Mar-a-Lago resort in Florida will be whether he makes good on his threat to use U.S.-China trade ties to pressure Beijing to do more to rein in its nuclear-armed neighbor North Korea.
Nerves were not helped when U.S. Pacific Fleet Commander Admiral Scott Swift said any decision on a pre-emptive attack against North Korea would be up to President Donald Trump.
Lingering fears of a possible trade war kept Asian markets on edge and MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS lost 0.8 percent.
Japan's Nikkei .N225 fell 1.4 percent to its lowest since early December. Australia's index lost 0.5 percent.
Shares in Shanghai .SSEC made marginal gains as a private survey of China's service sector showed activity expanded at its slowest pace in six months in March.
Sentiment had been bruised overnight when U.S. House of Representatives Speaker Paul Ryan said there was no consensus on tax reform and it would take longer to accomplish than healthcare.
Markets have risen in recent months in part on speculation fiscal stimulus would boost U.S. growth and inflation.
Minutes of the Fed's last meeting also showed most policymakers thought the U.S. central bank should begin trimming its $4.5 trillion balance sheet later this year, much earlier than many had expected.
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