Asia stocks brush off Wall Street slide after Trump's comments, dollar sulks
Asian stocks edged up on Thursday, shaking off the risk aversion that gripped financial markets overnight after U.S. President Donald Trump`s threat to shut down the government, though the dollar remained sluggish.
MSCI`s broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> rose 0.15 percent in early trade.
Japan`s Nikkei <.n225> pulled back 0.25 percent on a stronger yen.
Overnight, U.S. stock indexes closed between 0.3 percent <.ixic><.spx> and 0.4 percent <.dji> lower.
Trump said at a Tuesday night rally in Arizona that he would be willing to risk a government shutdown to secure funding for a wall along the U.S.-Mexico border. Those comments came ahead of a late-September deadline to raise the U.S. debt ceiling or risk defaulting on debt payments.
Fitch Ratings said on Wednesday that a failure to raise the federal debt ceiling in a timely manner would prompt it to review the U.S.`s sovereign rating "with potentially negative implications."
While the dollar managed to limit losses on Wednesday in Asia following Trump`s comments, it resumed declines during the U.S. day and failed to recover on Thursday.
The dollar was little changed at 108.98 yen
The dollar index <.dxy>, which tracks the greenback against a basket of six major peers, was steady early on Thursday, following the previous day`s 0.4 percent slide.
Trump "is using one of his tricks to get what he wants and does not seem to care what could be the consequence of the U.S. shutdown on the economy," said Naeem Aslam, chief market analyst at Think Markets. "What matters the most for Mr. Trump is to build the wall, which he promised throughout his campaign."
Also undermining the dollar were Trump`s threats to end the North American Free Trade Agreement, after three-day first-round talks that ended on Sunday failed to bridge differences.
Further rounds of talks will take place in September and later this year.
The Canadian dollar
Investors are also keeping a close eye on a central banking conference in Jackson Hole, Wyoming, which begins on Thursday, where Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi are both due to speak, though they don`t expect any new policy messages.
"We are inclined to think that the Jackson Hole symposium will probably disappoint, with central bankers preferring to explain detailed actions in September," Michala Marcussen, chief economist, and Guy Stear, head of emerging markets and credit research, at Societe Generale, wrote in a note.
In commodities, oil prices were steady and retained most of their recent gains made after U.S. crude inventories declined for the eighth straight week.
Global benchmark Brent
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.