Asian stocks subdued, oil near five-month low on U.S. inventory build

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Asian stocks stuttered on Thursday, dogged by the uncertainty over an intractabl...

TOKYO - Asian stocks stuttered on Thursday, dogged by the uncertainty over an intractable U.S.-China trade dispute, while oil prices flirted with five-month lows thanks to higher U.S. crude inventories and a bleaker demand outlook.

Brent crude futures barely moved at $60.01 in early trade after a 3.7% slide on Wednesday to $59.97 a barrel, the international benchmark’s lowest close since Jan. 28. Government data showed on Wednesday U.S. consumer prices barely rose in May, with the core annual inflation slowing to 2.0%, compared to a peak of 2.4% last July, adding to the growing expectations of a Federal Reserve rate cut in coming months.

Bond yields have plunged worldwide in the past several weeks as investors bet the Fed, and possibly other major central banks, will cut rates to cushion the potential economic damage from the U.S.-China trade standoff.

 

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