Asian shares came under pressure on Tuesday after Wall Street peers finished weaker, hurt by fresh worries about the U.S-China trade war and were on track for their biggest October decline since the 2008 financial crisis.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slid 0.1 percent, tracking falls in U.S. stocks. The index has fallen more than 12 percent this month.
Japan’s Nikkei average N225 rose 0.9 percent and the Australian benchmark shed 0.2 percent in early morning trade.
Major U.S. indices fell steeply in volatile trade after a Bloomberg report that the United States is preparing to announce tariffs on all remaining Chinese imports by early December if talks next month between Presidents Donald Trump and Xi Jinping falter.
The CBOE Global Markets volatility index .VIX, known as Wall Street’s “fear gauge”, jumped to as high as 27.86 points, its highest since Oct. 11 and the second highest since volatility shock in early February.
“The probability of global stocks turning to a bear market is increasing,” said Masanari Takada, cross-assets strategist at Nomura Securities.
“While some investors who look at fundamentals buy stocks on dips, there are other players who keep selling automatically in response to heightened volatility. Buyers will be overwhelmed if we have negative headlines on tariffs at time like this.”
China’s major stock indices fell sharply on Monday as earnings reports from industrial and consumer firms raised concerns about the slowdown in economic growth and the impact of policy support so far.
The Shanghai Composite Index SSEC shed 2.2 percent to finish at 2,542, well below the key 2,600 points while the blue-chip CSI300 index CSI300 closed 3.0 percent lower.
China’s yuan closed at its weakest in over a decade on Monday, losing 0.16 percent to end the domestic session at 6.9560 per dollar CNY=CFXS, stirring speculation over whether the central bank will tolerate a slide beyond the key level of 7 per dollar.
Prior to the spot market’s open, the offshore yuan CNH=D4 was little changed at 6.9730 after falling on Friday to as low as 6.9760 to the dollar, its weakest since January 2017.
The dollar index .DXY edged higher and was just below its a 10-week high it hit on Friday. The index gained on a decline in the euro after news German Chancellor Angela Merkel would not seek re-election as head of her CDU party.
Merkel said she would not seek re-election as party chairwoman, heralding the end of a 13-year era in which she has dominated European politics.
Oil prices edged lower overnight after Russia signaled that output will remain high and as concern over the global economy fueled worries about demand for crude.
The West Texas Intermediate crude futures CLc1 and Brent crude futures LCOc1 last traded at $66.81 and $76.77 a barrel, respectively.
3 Die In Jos Building Collapse
No fewer than three persons yesterday died when a three-storey building collapsed in Jos North area of Plateau State. The...
Presidency Faults Isha Sesay’s Book On Chibok Girls
The Presidency has reiterated the government’s unwavering determination to secure the release, by peace or by force, of the remaining...
Atiku, PDP Tender 48 Video Exhibits
The Presidential Election Petition Tribunal has admitted as exhibits, 48 video compact discs (VCDs) tendered by Atiku Abubakar, candidate of...
Mixed Reactions Trail OBJ’s Latest Missive To PMB
Mixed reactions yesterday trailed another open letter former President Olusegun Obasanjo wrote to President Muhammadu Buhari on the security challenges...
Army Redeploys Lt Gen Adeosun, 32 Others In Major Shakeup
In a major shakeup, the Nigerian Army has redeployed the newly promoted Lt-Gen. Lamidi Adeosun and 34 other senior officers....
Inflation Drops To 11.22%
The rate at which prices of goods and services rise declined significantly last month with inflation figures for June dropping...
Presidency Condemns Politicisation Of Fasoranti Daughter’s Death
The presidency has noted public concerns on the unfortunate attack leading to the death of the daughter of the Afenifere...
POLITICS22 hours ago
South East Leaders Chide Kalu For Supporting Ruga
COVER STORIES15 hours ago
Again, Obasanjo Writes PMB
NEWS9 hours ago
4 Cheat Death, 7 Cows Killed In Ekiti Auto Crash
NEWS9 hours ago
Court Jails Insurance Graduate For Impersonation
FEATURES22 hours ago
As Yahaya, Dankwambo Lock Horns Over Gombe Assets
OPINION22 hours ago
Save Toto LGA: Letter To President Buhari
NEWS9 hours ago
OAU Will Exit National Grid By October, Says VC
NEWS10 hours ago
Insecurity: Omo-Agege Backs Call For Deployment Of Soldiers On Highways