By Suzanne Barlyn
Oct 16 (Reuters) - Asian stocks came under pressure on
Friday as investors sought safe havens, such as the U.S. dollar,
fearing that a resurgence in coronavirus cases and a lack of
additional U.S. fiscal stimulus would hobble the world economy.
U.S. President Donald Trump's offer on Thursday to raise the
size of a fiscal stimulus package to win the support of
Republicans and Democrats helped narrow Wall Street losses,
though many investors still believe a deal is unlikely before
the Nov. 3 election. "There's a bit of worry there and also at what we're seeing
in America and in Europe regarding the virus and how it seems to
be taking hold pretty significantly again," said Grant
Williamson, investment adviser at Hamilton Hindin Greene in
Christchurch, New Zealand.
Stocks struggled to make gains in early Asian trade with
Australia's S&P/ASX 200 .AXJO down 0.02% and Japan's Nikkei
225 futures NKc1 adding just 0.06%. Hong Kong's Hang Seng
index futures .HSI HSIc1 rose 0.36%. E-mini futures for the
S&P 500 EScv1 rose 0.04%.
Australia and New Zealand investors were likely to "take a
breather" on Friday, especially after New Zealand equities
climbed 6% during October, Williamson said.
On Wall Street, the Dow Jones Industrial Average .DJI fell
0.07%, the S&P 500 .SPX 0.15% and the Nasdaq Composite .IXIC
dropped 0.47%.
An unexpected rise in U.S. weekly jobless claims figures
added to worries about a sputtering world economy, especially in
the face of a spike in COVID-19 cases in Europe. Safe-haven demand due to signs of a stalling U.S. economy
drove the dollar index =USD 0.398% higher after touching a
two-week high of 93.91, while the Japanese yen strengthened
0.08% versus the greenback at 105.38 per dollar. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS closed 0.04% lower.
The euro EUR= was down 0.01% to $1.1705, while a firmer
U.S. dollar dragged on sterling GBP= , which was last trading
at $1.2902, down 0.09% on the day.
Spot gold XAU= was little changed at $1,908.07 an ounce.
Focus in Asia swings to Canada-China relations after Canada
ordered a national security review of Shandong Gold Mining Co
Ltd's 600547.SS 1787.HK bid to acquire a gold mine in the
Canadian Arctic. It is the latest sign of pushback faced by
China's state miners. In Europe, London will enter a tighter COVID-19 lockdown
from midnight on Friday as Prime Minister Boris Johnson seeks to
tackle a swiftly accelerating second coronavirus wave.
"The market's on again off again love affair with an
impending stimulus torrent masks the fact that investor
uncertainty is bristling ahead of an expected choppy period in
terms of headline risk, including Brexit, the U.S. election, and
perhaps the most horrifying troubles of all, the second wave of
the coronavirus that could trigger more intense lockdown
worries," said Stephen Innes, global chief market strategist at
AxiCorp.
Brexit talks continued as The European Union put the onus on
Britain on Thursday to compromise on their new economic
partnership or stand ready for trade disruptions in less than 80
days.
Britain's Brexit negotiator, David Frost, said on Twitter he
was "disappointed." The Australian dollar fell 0.06% versus the greenback at
$0.709.
Oil prices were weighed by concerns about the coronavirus and
its impact on the world economy. Brent crude futures LCOc1
dropped 16 cents to settle at $43.16 a barrel, while U.S. West
Texas Intermediate crude futures CLc1 slipped 8 cents to
settle at $40.96 a barrel.
Traders' preference for safety helped government bonds. The
yield on U.S. Treasuries Benchmark 10-year notes US10YT=RR was
last 0.7306% from 0.734%.
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Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
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MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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