/Markets LIVE: Asian stocks extend slide, oil slumps on trade-war angst

Markets LIVE: Asian stocks extend slide, oil slumps on trade-war angst

Fin24 team

2019-06-03 08:20

Asian stocks were mostly lower in the wake of trade-war jitters from the US tariffs looming against Mexico and China’s retaliation against American measures.

MarketsMarkets

LIVE NEWS FEED

Jump to
bottom


Last Updated at

09:00


Asian stocks extend slide, oil slumps on trade-war angst

Adam Haigh, Bloomberg

Asian stocks were mostly lower in the wake of trade-war jitters from the US tariffs looming against Mexico and China’s retaliation against American measures.

US and European stock futures slumped and most companies in the MSCI Asia Pacific Index were down. Declines in Japan left benchmarks closer to wiping out their gains for 2019, while shares in Shanghai and Hong Kong saw more modest declines. South Korean and Indian equities rose.

Ten-year Treasury yields hit fresh 21-month lows, with JPMorgan Chase & Co. saying there’s more downside to come. Oil extended the rout from May, when West Texas Intermediate tumbled 16% thanks to global demand worries.

“Trade is a tail risk that’s becoming bigger by the day,” Jun Bei Liu, a portfolio manager at Tribeca Investment Partners, told Bloomberg TV in Sydney. “Investors right now are looking more at capital preservation before stepping into buy.”

May marked a brutal month for just about every asset class except bonds, with money managers seeking out the relative safety of Treasuries. And June began with China implementing retaliatory tariff hikes on Saturday.

Chinese officials are also planning action against “unreliable” foreign companies, with a list of violators pending. Meantime, President Donald Trump’s tariff moves against Mexico triggered a wave of forecast revisions among economists and strategists.

Traders are betting the Fed will cut its target rate by a half-percentage point by year-end, an outlook now matched by forecasts at JPMorgan and Natwest Markets. Morgan Stanley sees a recession in as soon as nine months if Trump puts 25% tariffs on the remainder of Chinese imports and China retaliates.



Original Source