Asian Stock Markets
Asian shares stepped back from decade highs on Tuesday as Chinese stocks stumbled for a second straight session, while the U.S. dollar trod water ahead of a crucial Senate vote on tax reform.
Investor confidence in China has been dented by rising bond yields as Beijing steps up its crackdown on shadow banking and other risky forms of financing. Higher borrowing costs threaten to squeeze corporate profits.
Mainland stocks have jumped 22 percent in 2017 .CSI300, with the gains concentrated in a handful of large index-weighted stocks. The index was down 0.3 percent while Shanghai's SSE Composite index slipped 0.2 percent at 0221 GMT.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.3 percent from last week’s high of 570.21 points. It was on track to end November in the black.
The index has been on an uptrend most of this year, posting a monthly loss only once in 2017.
Australian shares were flat while Japan's Nikkei .N225 rose 0.2 percent.
Wall Street had been mixed on Monday, with the S&P 500 .SpX off a touch, the Nasdaq .IXIC losing 0.1 percent and the Dow .DJI up 0.1 percent.
The dollar was a touch softer on the yen at 111.27 JPY=, and within spitting distance of a recent 2-1/2-month low, as bulls fret about potential delays in U.S. tax cuts.
The euro EUR= was steady at $1.1898, within reach of a two-month high.
The tweet came after a meeting with Senate Republican tax-writers on Monday ahead of a crucial vote on the Senate floor that could come as early as Thursday.
Separately, the U.S. Senate Banking Committee holds a hearing on Tuesday to confirm the nomination of Jerome Powell at the helm of the Federal Reserve. If confirmed, Powell will have to balance tightening policy against still sluggish wages and inflation.
The bond market is concerned the Fed will hike rates too far, keeping inflation too low and ultimately slowing the economy.
That has been a major force in the remarkable pace of curve flattening in recent weeks. The 2s/10s yield curve is only 58 basis points from inverting - a classic signal that recession is just around the corner. [US/]
In commodity markets, U.S. light crude CLc1 was off 29 cents at $57.82, having fallen more than a dollar overnight. Brent crude LCOc1 slipped 13 cents to $63.71, but not far from a near 2-1/2 year peak of $64.65 touched earlier this month.
Spot gold XAU= inched lower to $1,293.30.
Investor confidence in China has been dented by rising bond yields as Beijing steps up its crackdown on shadow banking and other risky forms of financing. Higher borrowing costs threaten to squeeze corporate profits.
Mainland stocks have jumped 22 percent in 2017 .CSI300, with the gains concentrated in a handful of large index-weighted stocks. The index was down 0.3 percent while Shanghai's SSE Composite index slipped 0.2 percent at 0221 GMT.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.3 percent from last week’s high of 570.21 points. It was on track to end November in the black.
The index has been on an uptrend most of this year, posting a monthly loss only once in 2017.
Australian shares were flat while Japan's Nikkei .N225 rose 0.2 percent.
Wall Street had been mixed on Monday, with the S&P 500 .SpX off a touch, the Nasdaq .IXIC losing 0.1 percent and the Dow .DJI up 0.1 percent.
The dollar was a touch softer on the yen at 111.27 JPY=, and within spitting distance of a recent 2-1/2-month low, as bulls fret about potential delays in U.S. tax cuts.
The euro EUR= was steady at $1.1898, within reach of a two-month high.
The tweet came after a meeting with Senate Republican tax-writers on Monday ahead of a crucial vote on the Senate floor that could come as early as Thursday.
Separately, the U.S. Senate Banking Committee holds a hearing on Tuesday to confirm the nomination of Jerome Powell at the helm of the Federal Reserve. If confirmed, Powell will have to balance tightening policy against still sluggish wages and inflation.
The bond market is concerned the Fed will hike rates too far, keeping inflation too low and ultimately slowing the economy.
That has been a major force in the remarkable pace of curve flattening in recent weeks. The 2s/10s yield curve is only 58 basis points from inverting - a classic signal that recession is just around the corner. [US/]
In commodity markets, U.S. light crude CLc1 was off 29 cents at $57.82, having fallen more than a dollar overnight. Brent crude LCOc1 slipped 13 cents to $63.71, but not far from a near 2-1/2 year peak of $64.65 touched earlier this month.
Spot gold XAU= inched lower to $1,293.30.
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