Asian stocks were mixed on Tuesday, as the dollar remained soft amid uncertainty over U.S. President Donald Trump's policies and his withdrawal from the Trans-Pacific Partnership trade deal.
Withdrawing from the TPP agreement was a promise Trump had made in his presidential campaign, saying it would protect American workers. The 12-nation trade deal was negotiated by former President Barack Obama's administration as a key pillar in his pivot to Asia.
Meanwhile, Trump also told business leaders on Monday that his administration could cut regulations by 75 percent or "maybe more" although further details were not given.
The greenback fell against a basket of currencies, dipping below 100 intraday, a low not seen sicne mid-November, and hovering around 100.04 in noon trade in Asia.
Japan's Nikkei 225 was down 0.07 percent, extending the previous session's declines of more than 1 percent.In mainland China, the Shanghai composite was flat, while the Shenzhen composite was down 0.264 percent. Hong Kong's Hang Seng was up 0.26 percent.Down Under, the ASX 200 rose 0.48 percent.
During Asian trade, U.S. crude futures were up 0.47 percent at $53.00 a barrel, while Brent crude was up 0.51 percent at $55.51.
The Dow Jones industrial average slipped 0.14 percent to close at 19,799.85, while the S&P 500 fell 0.27 percent at 2,265.2 and the Nasdaq closed down 0.04 percent at 5,552.94.
Economic calendar for European and American borse sessions
10:00 France - Manufacturing PMI
10:30 Germany - Manufacturing and services PMI
11:00 EU - Manufacturing PMI
11:30 UK - Public sector net borrowing
15:55 USA - Red book
16:45 USA - Manufacturing PMI
17:00 USA - Existing home sales
USD - The dollar remains weak against it's main competitors. But this may soon be changed. One of the first acts of the new US president was to do what was promised and to turn down TPP for US. Now the investors are waiting to see if the other promises are going to be fulfilled.
CAD - The canadian dollar may be facing big problems before Trump. If after NAFTA's re-start negotiations are negative for Canada more than in this moment, that will complicate the trade of the country and this will be highly negative for the currency. Usually the canadian dollar is moving along with the oil, higher priced oil= higher CAD, and at the moment expectations are for rising oil price.
JPY - Yen remains the strongest currency in the market. During economic or political uncertainty, the currency is favored by the investors as a save asset. We remain bullish toward the yen in short-term period.
EUR - The EUR is strong against it's most competitors. The weakened dollar is positive for the common currency. Today we are expecting data from Germany for Manufacturing PMI. If the data is better than expected we will most likely to see surge of the EUR. During the data we are expecting high volatility.
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