Asian shares slip to two-month lows as trade spat sprouts slowdown frets

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Asian shares slip to two-month lows as trade spat sprouts slowdown frets

On Monday, the 5th of August 2019, a gauge of Asian shares extended their losing streaks, as a steep exacerbation of Sino-US trade row had been keeping investors on their toes, while safe-haven currencies likes of Japanese yen and Swiss Franc were hovering near their multi-months highs and bond prices were holding their near-term peaks as US President Donald Trump’s latest threat to hike China tariff dampened risk-appetite further and fueled up demands for safe-haven commodities such as gold, which was anchoring near its six-months peak to $1449.36 per ounce during midday Asia-Pacific trading hours.

During preparation of this report, at midday Asia-Pacific trading hours, MSCI’s index of Asia-Pacific shares outside Japan extended its seven-day long losing streak to a two-month low to 502.83, so far down by 0.25 percent and well-poised to post its longest losing streak since October 2018.

Meanwhile, Japan’s Nikkei 225 dipped 1.93 percent and South Korea’s KOSPI shed 1.2 percent to breach its lowest level since December 2016. Adding that Sino-US trade rows would likely to tune up market tones across the world in a longer-term outlook, a head of forex strategy at National Australian Bank, Ray Attrill said, “Aftershocks from President Trump’s Thursday (tariff) announcement...

are set to dominate the global economic and financial landscape in coming weeks and months”. Elsewhere in the Asia-Pacific region, Hong Kong shed 1.79 percent and Shanghai’s SSE Composite Index dropped 0.27 percent, while Australia’s ASX 200 index shrugged off just a notch shy of 1 percent and New Zealand’s NZ 50 was nudged 0.60 percent lower, as slowdown worries started off to whiplash further after China’s Caixin service sector PMI for July had missed estimate earlier on morning Chinese trading hours.