TOKYO - Asian shares were led lower on Thursday as the Hong Kong market fell for second consecutive session following a day of massive street protests, while oil prices flirted with five-month lows due to higher U.S. crude inventories and a bleak demand outlook.
“There’s not even a plan of ministerial-level bilateral meetings ahead of the G20 summit. You can’t expect any major agreement,” said Hirokazu Kabeya, chief global strategist at Daiwa Securities. Japan’s Nikkei lost 0.8% while U.S. stock futures lost 0.3% in Asia, following small losses the previous day when the S&P 500 shed 0.20%.
U.S. West Texas Intermediate crude futures stood at $51.12 per barrel, compared to the previous day’s close of $50.72 a barrel, its weakest settlement since Jan. 14. Investors will be looking to what Fed policymakers will say after its next policy meeting on June 18-19, with Fed Funds rate futures pricing in a 25-basis-point rate cut for the subsequent policy review on July 30-31.
In Australia, long known for its high-yield currency, yields fell to record lows, with three-year yield now slipping below 1 percent.