Stocks Fall on Trade Worries; Treasuries Pare Gain: Markets Wrap

(Bloomberg) -- The risk-off tone that’s engulfed global markets continued Wednesday as Asian stocks slid on heightened uncertainty over this month’s upcoming tariff deadline. Treasury yields pared some of Tuesday’s decline which was the most since August.Australia’s main share index fell more than 1.5% while losses were more modest in South Korea, Hong Kong and Japan. The S&P 500 Index declined Tuesday for a third day, though it pared some losses into the close as the Trump administration downplayed the urgency of signing a trade deal. Also hampering sentiment was a vote in the U.S. House to sanction Chinese officials for human rights abuses, which Beijing threatened to retaliate against.With less than two weeks to go until the next U.S. tariff hike on Chinese goods due on Dec. 15, investors are showing nervousness that’s luring money back to safe-haven assets. Australian bonds tracked the overnight move higher in Treasuries. Expectations for a cease-fire on duties was part of the driver that sent global equities to a record high last month.“It’s very difficult to have conviction about which way the trade situation will go,” Laura Kane, head of Americas thematic investing at UBS Global Wealth Management, told Bloomberg TV. “Just a few weeks ago the news was incrementally positive, now we’ve moved more negative again, but the situation is going to stay in flux as we enter next year.”Investors are also assessing the passage of legislation in the U.S. House that would require the Trump administration to sanction Chinese government officials responsible for the repression of Muslims minorities. China warned the U.S. to stop interfering in its internal affairs.Elsewhere, oil rose as traders focused on the upcoming OPEC+ meeting that could lead to deeper supply cuts by some of the biggest crude producers. The Australian dollar dipped slightly after third-quarter GDP came in less than than expected, while the previous quarter was revised up.Here are some key events coming up this week:Germany releases factory-order data for October on Thursday.India’s central bank reviews monetary policy on Thursday.Saudi Aramco’s initial public offering is scheduled to be priced on Thursday, with Riyadh looking to raise more than $25 billion.Friday brings the U.S. jobs report, where estimates are for non-farm payrolls to rise by 190,000 in November.These are the main moves in markets:StocksJapan’s Topix index fell 0.4% as of the lunch break in Tokyo.Hong Kong’s Hang Seng Index retreated 0.9%.The Shanghai Composite declined 0.2%.South Korea’s Kospi dropped 1.1%.Australia’s S&P/ASX 200 Index declined 1.7%.Futures on the S&P 500 were little changed. The underlying gauge fell 0.7% on Tuesday.CurrenciesThe yen was at 108.53 per dollar.The offshore yuan held at 7.0699 per dollar.The Bloomberg Dollar Spot Index was little changed.The euro was little changed at $1.1080.BondsThe yield on 10-year Treasuries rose about one basis point to 1.73% after tumbling on Tuesday.Australia’s 10-year yield fell 12 basis points to 1.08%.CommoditiesWest Texas Intermediate crude climbed 0.6% to $56.41 a barrel.Gold was at $1,478.06 an ounce after surging 1% the prior session.\--With assistance from Rita Nazareth, Vildana Hajric, Liz Capo McCormick and Emily Barrett.To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Andreea Papuc, Ravil ShirodkarFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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