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

Reuters  |  TOKYO 

By Shinichi Saoshiro

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

MSCI's broadest index of shares outside <.MIAPJ0000PUS> inched down 0.05 percent. The index had surged 1.5 percent on Monday following firm U.S. jobs numbers, while low wage growth eased concerns about inflation and

But a mixed performance by U.S. shares overnight cooled investor risk appetite in The <.SPX> and the Dow <.DJI> slipped on Monday as the U.S. tariffs signed into weighed on industrials, while gains in tech stocks boosted the Nasdaq <.IXIC>.

Focus now turns to U.S. consumer price data due later on Tuesday for the global markets to gauge inflation trends in the world's largest economy and as a guide for upcoming Fed policy.

Australian shares <.AXJO> lost 0.5 percent, South Korea's <.KS11> fell 0.2 percent and Japan's Nikkei <.N225> shed 0.8 percent.

"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 89.900 <.DXY> after shedding about 0.2 percent overnight.

The euro was a shade higher at $1.2339 , adding to overnight gains of 0.25 percent.

The U.S. currency was down 0.15 percent at 106.280 yen after a renewed political scandal in threw doubt over the future of Shinzo Abe's economic policies and pushed it off last week's peak above 107.00.

The benchmark 10-year note yield stood little changed at 2.873 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 0.05 percent to $61.33 per barrel after losing 0.8 percent the previous day.

(Reporting by Shinichi Saoshiro; Editing by Sam Holmes)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, March 13 2018. 06:08 IST