· Asian shares eked out cautious gains on Wednesday, as higher Wall Street futures provided some relief after an overnight U.S. selloff, though deeper worries about the global economy and trade continue to weigh on market sentiment.
Japan's Nikkei .N225 rose 0.21%, Australia's shares climbed 0.41% while Korea's KOSPI .KS11 was up 0.76%. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.03%, held back by weaker Chinese markets.
A trade dispute between the United States and China is now in its second year and is placing increasing strain on the global economy, forcing policymakers to respond with interest rate cuts and stimulus measures to bolster growth.
· Japanese shares posted slim gains on Wednesday, led by buying in defensives such as telecommunications and consumer-linked firms, though concerns about Sino-U.S. relations capped gains.
The Nikkei share average rose 0.15% to 20,487.22, drawing some support from higher Wall Street futures but still not far from seven-month lows of 20,110.76 touched earlier this month.
The broader Topix gained 0.11% to 1,491.31.
Financial markets have become concerned about protracted trade talks between the United States and China and growing increasingly sceptical both sides will arrive at an amicable trade deal in the near term.
· “I think (U.S. President Donald) Trump will make a deal with China in the end. But it will take some time and for the moment, markets will remain shackled by anxieties,” said Tsuyoshi Shimizu, head of research at Asset Management One.
· China stocks ended lower on Wednesday as lingering uncertainty over the Sino-U.S. trade dispute continued to unnerve investors, and while the positive impact from MSCI’s latest phase of China stock inclusion fades.
The blue-chip CSI300 index ended down 0.4% at 3,802.58, while the Shanghai Composite Index lost 0.3% to 2,893.76 points.
· European stocks traded lower Wednesday morning after the U.S. yield curve inversion deepened to levels not seen since 2007, reigniting fears of an impending recession.
The pan-European Stoxx 600 slipped 0.4% in early trade, technology stocks shedding 1% while the retail sector gained 0.2% as most sectors and major bourses slid into the red.
Reference: CNBC
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