* MSCI ex-Japan slips from highest level since late January
* Australia, South Korea lead gains; Chinese shares in red
* Dollar at 27-month low on easy monetary policy
* Fed meeting minutes awaited
By Swati Pandey and Chibuike Oguh
SYDNEY, Aug 19 (Reuters) - A gauge of Asian shares eased on
Wednesday led by losses in Chinese and Hong Kong stocks, though
it was still near a seven-month peak, driven by ever expanding
policy stimulus aimed at cushioning the blow from the
coronavirus pandemic.
In an indication of positive start for Europe, futures for
Eurostoxx 50 STXEc1 and Germany's Dax FDXc1 rose 0.3% each
while London's FTSE futures FFIc1 Added 0.2%.
E-Minis for the S&P 500 ESc1 were last up 0.15%.
Asian shares had started the day on a positive note too
before profit taking emerged in Chinese and Hong Kong shares.
MSCI's broadest index of Asia-Pacific shares outside of
Japan .MIAPJ0000PUS snapped two straight days of gains,
dipping 0.1% after earlier hitting a high of 571.33 points, a
level not seen since late January.
China's blue-chip index .CSI300 slipped 1% following a
strong rally in recent days, while Hong Kong's Hang Seng .HSI
was off 0.9%.
Australian shares .AXJO finished 0.8% higher and South
Korea .KS11 added 0.8%. Japan's Nikkei .N225 rose 0.25%.
While emerging markets found some support from the
low-yielding environment and a weaker U.S. dollar, worries about
the economic hit from the pandemic kept investors jittery,
analysts said.
"Continued economic impacts of the current crisis and
limited capacity for fiscal and monetary stimulus, except for
China, have weighed on sentiment despite the slump in the USD,"
analysts at T. Rowe Price wrote in a note.
"While a lower USD removes a significant headwind for
emerging markets assets, bigger risks abound for broader EM as
they continue to weather the crisis."
On Tuesday, both the S&P 500 and Nasdaq Composite set
records soon after the opening bell, helped by strong sales
growth reported by major U.S. retailers including Walmart,
Kohl's and Home Depot.
The closely-watched S&P 500 topped an all-time peak reached
in February just before the onset of the COVID-19 pandemic drove
the benchmark index to lows on March 23. The index has surged
about 55% since then.
At just 126 days, that "is the fastest bear market recovery
ever," said Tapas Strickland, economist at Melbourne-based
National Australia Bank.
Nasdaq clocked its 18th record closing high since early
June.
The U.S. Federal Reserve's intervention in financial markets
to maintain liquidity in the midst of the coronavirus pandemic
has pushed risk assets to all-time highs and reduced demand for
safe-havens, weakening the greenback. Market optimism was also buoyed by data showing an
acceleration in U.S. homebuilding to the most in nearly four
years in July, signifying that the housing sector is emerging as
one of the few areas of strength.
In addition, hopes of an interim fiscal package were
re-ignited overnight with House Speaker Nancy Pelosi indicating
a willingness to cut their proposals in order to seal a deal,
NAB's Strickland noted.
Markets were also paying close attention to minutes from the
Fed's recent meeting due later in the day "for any hints on what
the Fed could announce regarding forward guidance come
September," Strickland said.
The Fed has cut rates to near zero to bolster business
through the pandemic, sending the dollar to a 27-month low.
=USD
The dollar index was last barely changed at 92.22 from
above-100 in March. The safe haven Japanese yen JPY= was a tad
lower at 105.50 versus the greenback.
The risk-sensitive Australian dollar AUD=D3 traded near
$0.7250, while the kiwi NZD=D3 last bought $0.6621.
Gold flirted with key charted resistance of $2,000 an ounce
to be last at $1,989.6.
U.S. gold futures GCv1 were a shade weaker at $2,001.5.
Oil prices skidded as concerns grew that U.S. fuel demand
may not recover quickly. O/R
Brent crude LCOc1 down 40 cents at 45.06 and U.S. crude
CLc1 off 32 cents at $42.57.
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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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