Asian shares falter, China under renewed pressure on trade war fears

Asian shares falter, China under renewed pressure on trade war fears

Among the actives, Galaxy Entertainment plummeted 6.50 percent, while Sands China plunged 6.20 percent, SCPC Pharmaceuticals tumbled 2.32 percent, China Mobile and Ping An Insurance both skidded 2.01 percent, China Life dropped 1.93 percent, Industrial and Commercial Bank retreated 1.70 percent, China Mengniu Dairy declined 1.69 percent, CNOOC shed 1.62 percent, China Petroleum and Chemical (Sinopec) lost 1.57 percent, Sino Land slid 1.10 percent, New World Development advanced 0.91 percent, WH Group fell 0.63 percent, Henderson Land added 0.48 percent and Hong Kong & China Gas was unchanged.

Liquor makers, food and drinks led the losses on Tuesday.

Among equity markets, Hong Kong dived as much as 3.3 percent to nine-month lows, hit also by US curbs on China Mobile.

USA markets are set to close early for the Fourth of July holiday.

An investor looks at stock market information at an exchange hall in Fuyang, Anhui Province of China.

The yuan extended losses and has fallen around eight percent since the end of March - it is now at an 11-month low - adding to fears about the mainland as leaders struggle to cap a debt mountain while also supporting growth.

Chinese currency and stock markets have been jittery ahead of a July 6 deadline for USA tariffs on $34 billion worth of Chinese goods that Beijing has said it would match with tariffs on US products.

After the comments, the onshore yuan gained 0.2% to 6.6500 per dollar.

The ChiNext Index, China's NASDAQ-style board of growth enterprises, was up 1.18 percent to close at 1,607.12 points Tuesday.

The Reserve Bank of Australia (RBA) kept rates at record lows of 1.5 percent, as widely expected, at its monthly policy meeting on Tuesday and showed no hint of hiking anytime soon.

"Potentially, we're moving into new, uncharted territory. And ultimately, unless there's compromise in the trade dispute, the yuan should remain under pressure", said Stephen Innes, regional head of trading at Oanda. The currency is allowed to trade up to 2 per cent either side of this fixed point. "Our base case remains that some form of negotiated solution will be reached, but things are likely to get worse before they get better", Shane Oliver, chief economist at AMP Capital, said in a Saturday note.

After the morning drop, market participants suspected the central bank of intervening in the currency market to support the yuan. Its net profit soared 302 percent from a year ago to 7.6 billion yuan. By the end of the day, the Shanghai Composite was up 0.4 per cent while the CSI300 had risen 0.04 per cent. The Chinese benchmark index finished the Monday session down more than 22 percent from its 52-week high of 3,587.03.

The dollar fell 0.2 percent against a basket of six major currencies at 94.505 ahead of the U.S. Independence Day holiday, after notching up three consecutive months of gains. Then spilt lower after Saudi Arabia said it's prepared to use its spare production capacity, estimated at 2million barrels per day, to balance the global oil market and all but confirming President Trump's weekend tweets that he asked Saudi Arabia to increase oil production.

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