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Asia stocks step back on tepid Wall Street, oil elevated

Reuters  |  TOKYO 

By Shinichi Saoshiro

(Reuters) - stocks pulled back on Tuesday, after an uninspiring performance on Wall Street eclipsed support from U.S.-trade optimism, while supply concerns kept prices near 3-1/2-year highs.

MSCI's broadest index of shares outside <.MIAPJ0000PUS> dipped 0.16 percent after rising 0.6 percent the previous day to its highest since late March.

Australian stocks <.AXJO> inched up 0.05 percent, South Korea's <.KS11> shed 0.05 percent and Japan's Nikkei <.N225> was flat.

Wall Street scraped out gains on Monday after weakness in defensive stocks offset optimism following U.S. Donald Trump's conciliatory remarks toward China's that helped calm U.S.-trade tensions. [.N]

Investors in Chinese equities will likely rejig their exposure after MSCI, the U.S. index publisher, published its latest index weighting.

said on Tuesday that 234 Chinese large caps will be partially included in its global and regional indexes on June 1, following an index review ahead of China's inclusion in MSCI's widely tracked equity benchmarks.

added 0.2 percent to $78.38 a barrel and in close reach of $78.53, the 3-1/2-year high marked on Monday. U.S. futures advanced 0.15 percent to $71.07 a barrel and in reach of $71.89, the highest since November 2014 scaled on Thursday.

received their latest lift as reported that the global has been virtually eliminated. Tensions in the and uncertainty about output from amid renewed U.S. sanctions have contributed to the recent rise in [O/R]

"The recent rise in prices of won't have a broadly negative impact on equity markets if it continues at the current pace," said Masahiro Ichikawa, at in

"The rise in is boding well for certain stock sectors like "

In currencies, the dollar index against a basket of six major currencies nudged up 0.1 percent to 92.661 <.DXY>.

The greenback took a knock against the euro earlier on Monday after policymaker said the ECB could give fresh timing guidance of its first rate hike as the end of its exceptional bond purchases approaches.

The U.S. currency managed to bounce back, however, after reiterated support for gradual interest rate increases.

The euro stood little changed at $1.1930 after pulling back sharply from the previous day's high of $1.1996.

The dollar was a shade higher at 109.755 yen , adding to the previous day's gains.

The currency drew support as yields rose amid the easing of U.S.-trade tensions. [US/]

The 10-year Treasury note yield was at 2.998 percent after rising about 2.5 basis points overnight.

(Reporting by Shinichi Saoshiro; Editing by Shri Navaratnam)

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

First Published: Tue, May 15 2018. 06:06 IST