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Asian stocks retreat as trade worries sour mood

Reuters TOKYO (Reuters) — Asian stocks slid across the board on Wednesday, dragged down by Wall Street’s tumble as sharp declines in long-term U.S. Treasury yields and resurgent trade concerns stoked investor worries about global economic growth.

Spreadbetters expected European stocks to open lower, with Britain’s FTSE losing 0.9 percent, Germany’s DAX falling 1.2 percent and France’s CAC retreating 1 percent.

Global equities have been shaken as a flattening U.S. Treasury yield curve fans worries about a recession, and on growing doubts that Washington and Beijing will be able to clinch a substantive trade deal during a temporary ceasefire agreed at the weekend.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.5 percent.

The Shanghai Composite Index slipped 0.6 percent and Japan’s Nikkei dropped 0.5 percent.

Australian stocks lost 0.8 percent, pressured by global losses. The mood further soured after data showed Australia’s third-quarter growth fell short of expectations. The Australian dollar was down 0.7 percent at $0.7288.

The Dow retreated 3.1 percent and the Nasdaq sank 3.8 percent on Tuesday. U.S. financial shares, which are particularly sensitive to bond market swings, dropped 4.4 percent.

Following Wall Street’s overnight tumble, S&P e-mini futures nudged up 0.3 percent in Asian trade on Wednesday.

Signals from the Federal Reserve last week that it may be nearing an end to its three-year rate hike cycle has pushed the 10-year U.S. Treasury yield to three-month lows below 3 percent.Speech

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