Asian stocks mixed over befuddling US trade stance | AP business

Asian stocks mixed over befuddling US trade stance | AP business

The Asian stock market was under pressure on Wednesday as extended losses in Chinese stocks and in the yuan sent waves across the region.

The official said China hopes that all WTO members could take a long-term perspective and firmly support the multilateral trade system and jointly work to address challenges to the system, to safeguard the effectiveness and authority of the WTO. The yield has been confined to a 15-basis-point range in June after fluctuating by almost 40 basis points in May, when it touched a seven-year high of 3.128 percent.

The yuan weakened 389 basis points to 6.5569 against the US dollar Wednesday, according to the China Foreign Exchange Trade System.

The United States' friendlier stance on its trade relationship with China led global stock markets slightly higher on Wednesday, despite a 2 percent slide in Chinese equities, and drew the US dollar toward its second straight day of gains.

Statistics show that China represents roughly 60 percent of the world's total soybean trade and one third of Chinese soybean imports come from the U.S., according to Xinhua.

"Countries imposing retaliatory tariffs "falsely assert" that USA steel and aluminium tariffs are "safeguard" actions meant to protect US producers from imports", he said in a statement.

United States officials complain the WTO, the Geneva-based arbiter of trade rules, requires an overhaul because it is bureaucratic, rigid and slow to adapt to changing business conditions. "The fear now is that "America First" may become "America Worst", he added.

WALL STREET: Major U.S. benchmarks finished lower.

In worrying sign for some investors, the US yield curve flattened further, with the spread between the two and 10 year yields shrinking to a 10-year low of just 32 basis points, or 0.32 percentage point.

The fall in USA bonds yields came despite inflationary pressure stemming from rising oil prices.

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Asian shares were subdued on Wednesday as weakness in Chinese stocks and the yuan weighed on sentiment, while oil held hefty gains as the United States pressured allies to stop buying Iranian crude.

Global stocks were mixed Thursday as investors digested assurances from the USA and China on trade, after a series of exchanges between the two resulted in widespread uncertainty.

A market analyst from Shanghai told Reuters the move "demonstrates the government's attitude that we will import from other countries".

Expectations that US interest rates will rise just as the European Central Bank is pushing back its planned rate increases have been a key driver for a two-month rally in the dollar.

The euro was hit by concerns about political uncertainty in Germany although Chancellor Angela Merkel's coalition partner said it was not seeking to break up the government.

Meanwhile, in the currency markets, trade-sensitive currencies like the Australian and New Zealand dollars lost some ground.

The common currency stood at $1.1565, edging near an 11-month low of $1.1508 set a week ago.

The U.S. dollar changed hands in the lower 110 yen zone.

The yuan skidded to as low as 6.6162 yuan, its weakest since December, after the People's Bank of China (PBOC) lowered the currency's midpoint for the sixth straight day to its weakest in six months.

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