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.
U.S. West Texas Intermediate crude futures firmed slightly to US$51.29 per barrel, compared to the previous day's close of 50.72 a barrel, its weakest settlement since Jan. 14."It is a bit of mystery that oil prices are so low when global stock prices remain relatively supported. But one thing is certain. Weaker oil prices will curb inflation and boost rate cut expectations," said Hirokazu Kabeya, chief global strategist at Daiwa Securities.
The 10-year U.S. Treasuries yield dipped to 2.122 percent, a tad above Friday's 2.053 percent, its lowest level since September 2017 while the two-year yield fell to 1.887 percent.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.