BOSTON, Aug. 10 (Reuters) – Asian equities were set for a cautious start on Tuesday, following a mixed Wall Street session and when investors saw U.S. stimulus efforts stop and escalate tensions between Washington and Beijing over Hong Kong.
Australian S & P / ASX 200 futures fell 0.05% in early trading.
Japanese futures of Nikkei 225 slipped 0.04%. Tokyo markets were closed Monday for a public holiday.
Hong Kong Hang Seng Index futures rose 0.43%.
“The very subdued start of the week in all time zones Monday seems to be continuing today in Asia,” Ray Attrill, head of FX Strategy at National Australia Bank, told Reuters via email.
Attrill noted little progress on the next round of U.S. fiscal stimulus, more post-for-tat posturing between China and the U.S., and a bright calendar for Asian financial markets.
Asked on Monday if he would respond to new Chinese sanctions on 11 U.S. citizens, including Republican lawmakers, President Donald Trump said he had already responded last week with sanctions on Hong Kong and Chinese officials.
However, Trump also indicated that the Phase 1 trade agreement with China means “very little”, which could set the stage for further tensions when officials from both countries meet on Saturday to discuss progress over the first six months of the agreement. checking.
U.S. stocks were mixed on Monday. The Dow jumped 1%, the S&P 500 inches up and the Nasdaq closed lower as investors expanded a rotation in value stocks from names with heavyweight technology.
U.S. congressional leaders and Trump administration officials said Monday they were ready to resume negotiations on coronavirus relief, but talks remained open because Democrats said Republicans should meet in the middle.
Also on Monday, China imposed sanctions on 11 U.S. citizens, including Trump Republican lawmakers, in response to Washington’s imposition of sanctions on Hong Kong and accused Chinese officials of curtailing political freedoms there.
The dollar won, but analysts said the move was unlikely to be sustainable.
“Tensions between the US and China remain high this summer, giving support to the dollar,” strategists at the Commonwealth Bank of Australia wrote in a note on Tuesday. “But we doubt that US-China tensions could derail the well-established dollar downtrend.”
The dollar index rose 0.18%, with the euro rising 0.03% to $ 1.144.
The Japanese yen strengthened 0.01% against the greenback at 105.95 per dollar.
The Australian dollar was flat against the greenback at $ 0.715.
The Korean won 0.01% weakened against the greenback at 1,185.73 per dollar.
Oil rose, backed by Chinese production price data, growing energy demand and hoping for an agreement in the United States on more coronavirus-related economic stimulus.
US crude was up 0.12% to $ 41.99 per barrel and Brent was flat on the day.
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