Gold prices edge lower; heading for weekly losses ahead of U.S.-Russia talks
* Hang Seng falls 0.6%, mainland China down 0.3%
* Nikkei down 0.2%, ex-Japan Asian loses 0.3%
* Investors fret over U.S.-China tensions
* Hopes of economic re-opening support sentiment
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Hideyuki Sano and Koh Gui Qing
TOKYO/NEW YORK, May 27 (Reuters) - Asian shares slipped on
Wednesday as investor concerns about rising tensions between the
United States and China tempered optimism about a re-opening of
the world economy.
U.S. President Donald Trump said late on Tuesday he is
preparing to take action against China this week over its effort
to impose national security laws on Hong Kong, but gave no
further details. Hong Kong shares led declines among major regional indexes,
with Hang Seng .HSI falling 0.46%, though it kept a bit of
distance from a two-month low touched on Monday. MSCI's ex-Japan
Asia-Pacific index .MIAPJ0000PUS lost 0.12%, with mainland
Chinese shares .CSI300 down a similar amount.
Japan's Nikkei .N225 was almost flat.
Worsening relations between the world's two biggest
economies could further hobble global business activity, which
is already under intense pressure due to the coronavirus
pandemic.
E-Mini futures for the S&P 500 ESc1 rose 0.4%, reclaiming
the 3,000 chart level. The index had cleared 3,000 points in
Wall Street overnight before pulling back, as some traders
returned to the New York Stock Exchange floor for the first time
in two months. "The S&P 500 looked to be set to close above 3,000 until the
late headline that the United States was considering a range of
sanctions on Chinese officials and businesses should China go
ahead with its legislation regarding Hong Kong," analysts at the
National Australia Bank said in a note.
"The extent of those possible sanctions is uncertain," the
analysts said.
China's plans to impose national security laws in Hong Kong
have triggered the first big street unrest in the Asian
financial hub since last year.
Overnight, hundreds of riot police took up posts around Hong
Kong's legislature in anticipation of protests on Wednesday.
Still, the index of world's 49 stock markets .MIWD00000PUS
stood near 2 1/2-month highs, having gained 2.6% so far this
month on hopes of economic recovery in the developed world as
countries ease social restrictions.
Economic data published on Tuesday showed U.S. consumer
confidence nudged up in May and new home sales beat
expectations.
"We have seen a clear sign of rising expectations in
economic recovery. Now we are beginning to see evidence of
various stimulus supporting the economy," said Toshifumi
Umezawa, strategist at Pictet.
U.S. Treasury yields retreated from lows, with ten-year
yields US10YT=RR at 0.692%, having risen about 4 basis points
on Tuesday.
Gold prices rebounded from losses as some investors played
it safe, with spot gold XAU= unchanged at $1,710.9 per ounce.
The retreat from risk led oil prices to give up earlier
gains. U.S. West Texas Intermediate crude futures CLc1 were
down 1.2% at $33.95 per barrel.
(Editing by Sam Holmes)