Asian stocks fall with oil amid global economy fears

Asian shares stumbled and oil prices fell on Tuesday as pessimism about world growth drove investors away from risky assets, while sterling ticked lower in the face of the latest twists and turns in the Brexit saga. China got the week off to a shaky start on Monday after Beijing reported 2018 growth in the world’s second-largest economy slowed to its weakest pace in nearly 30 years. Adding to the air of caution, the International Monetary Fund trimmed its global growth forecasts and a survey showed increasing pessimism among business chiefs as trade tensions loomed.

The gloomy news highlighted the challenges facing policymakers globally as they tackle an array of current or potential crises, from the U.S.-China trade war to Brexit. Spreadbetters point to another weak start for Europe. FTSE futures FFIc1 were off 0.2 percent while U.S. stock futures, which offer an indication of how Wall Street will open, were down about 0.7 percent.

In Asia, losses were led by Chinese shares, with the blue-chip index .CSI300 off 1.2 percent. Hong Kong’s Hang Seng index .HSI was down more than 1 percent and Australia’s main share index faltered 0.5 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.9 percent on Tuesday, drifting away from a recent seven-week top. Japan’s Nikkei .N225, which had opened firmer, skidded 0.7 percent. Demand for the safe-haven yen kept the greenback under pressure with the Japanese currency last buying at 109.41 per dollar. The euro was near the floor of its recent trading range at $1.1358 EUR=. Against a basket of currencies, the dollar was barely changed at 96.393 .DXY. In commodities, global growth worries pulled oil prices lower with Brent LCOc1 down 55 cents at $62.19 and U.S. crude futures CLc1 off 39 cents at $53.41.

Asian shares, oil skid on global growth worries, Reuters, Jan 22