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Asia stocks rally stalls as Wall St loses steam, dollar sags

Reuters  |  TOKYO 

By Shinichi Saoshiro

(Reuters) - Asian stocks stalled on Tuesday as Wall Street shares lost steam, while the dollar sagged on the back of declining U.S. yields.

Investors were focused on U.S. inflation data due later in the day (1230 GMT) for clues on the pace of Federal Reserve rises this year.

MSCI's broadest index of shares outside was little changed by mid-morning.

The index had surged 1.5 percent on Monday following firm U.S. jobs numbers on Friday, while low wage growth eased concerns about inflation and

But a mixed performance by U.S. shares overnight cooled investor risk appetite in

The and the Dow slipped on Monday as the U.S. tariffs signed into weighed on industrials, while gains in tech stocks boosted the Nasdaq to a new record high.

Japan's Nikkei shed 0.2 percent, with shares in steelmakers and automakers still battered by concerns about U.S. tariffs on imported and aluminium.

Some market participants say a political scandal engulfing is raising doubts about his ability to pursue economic reform, undermining stock market sentiment.

Australian shares lost 0.7 percent , while dipped 0.1 percent.

South Korea's was effectively flat, faring better as major tech shares such as and rose following gains by their U.S. peers.

"Concerns towards trade conflict stemming from U.S. tariffs continue to linger in the background, capping risk appetite, pushing Treasury yields lower which in turn weighing on the dollar," said Junichi Ishikawa, at in

"That said, there are still bright spots that bode well for broader risk sentiment, as the Nasdaq's gains shows."

Separately, U.S. on Monday blocked Singapore-based maker Broadcom Ltd's takeover bid of on grounds of national security, ending what would have been the technology industry's biggest deal ever.

The dollar index against a basket of six major currencies was flat at 89.891 after shedding about 0.2 percent overnight.

The euro was a shade higher at $1.2337 , adding to overnight gains of 0.25 percent.

The U.S. currency was down 0.05 percent at 106.350 yen as the renewed political scandal in pushed it off last week's peak above 107.00.

The benchmark 10-year note yield stood little changed at 2.877 percent. The yield declined by 2.5 basis points overnight.

In commodities, extended losses after sliding the previous day amid ongoing concerns over rising U.S. output.

U.S. crude futures lost 0.3 percent to $61.19 per barrel after losing 0.8 percent the previous day. Brent fell 0.3 percent to $64.76 per barrel.

(Reporting by Shinichi Saoshiro; Editing by and Kim Coghill)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 13 2018. 08:13 IST