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Asian stocks slip as oil woes sap sentiment, euro stands tall

Reuters  |  TOKYO 

By Shinichi Saoshiro

TOKYO (Reuters) - Asian stocks slipped on Wednesday after weaker prices took a toll on Wall Street, while the euro kept big gains after enjoying a boost from robust German economic growth.

MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> was down 0.16 percent.

Australian stocks <.AXJO> dropped 0.48 percent and South Korea's KOSPI <.KS11> shed 0.5 percent. Japan's Nikkei <.N225> lost 0.8 percent.

"The decline by U.S. equities led by energy shares is having a knock-on effect, dampening sentiment in sectors related to energy and industry," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management in Tokyo.

"Broadly speaking equities had enjoyed an almost uninterrupted run for the past few months, so we are seeing a bit of a correction finally emerging."

All three major U.S. stock indexes dipped on Tuesday as an extended drop in prices hit energy shares and as General Electric plunged for a second straight day. [.N]

The euro stood little changed at $1.1793 after rising 1.1 percent overnight to a 2-1/2-week high of $1.1805 as data showed Germany's economy shifted into a higher gear in the third quarter.

Germany's seasonally adjusted gross domestic product (GDP) rose by 0.8 percent on the quarter, compared with a poll forecast of 0.6 percent. [nL8N1NK1JC]

Pressured by the euro's surge, the dollar index against a basket of six major currencies lost about 0.7 percent overnight before bouncing back modestly to 93.881. <.DXY>.

The greenback was steady at 113.420 yen after pulling back from a high of 113.910 the previous day.

The immediate focus for the dollar, and a potential catalyst, was data on U.S. consumer prices due later in the day.

In commodities, prices stretched losses, weighed by forecasts for rising U.S. crude output and a gloomier outlook for demand growth in a report from the International Energy Agency (IEA). [O/R]

U.S. crude futures were down 1.15 percent at $55.06 per barrel and on track for their fourth day of losses.

With prices having slid steadily from 28-month highs scaled last week, commodity currencies came under pressure.

The Australian dollar traded at $0.7630 and within reach of a four-month low of $0.7609 plumbed on Tuesday.

The Canadian dollar stood at C$1.2739 per dollar after weakening to a one-week low of C$1.2773 overnight.

(Reporting by Shinichi Saoshiro)

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

First Published: Wed, November 15 2017. 06:10 IST
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