GLOBAL MARKETS-Asia shares creep above 2-mth lows, but growth, US policy risks weigh

GLOBAL MARKETS-Asia shares creep above 2-mth lows, but growth, US policy risks weigh
From Reuters - December 6, 2017

TOKYO (Reuters) - Asian shares hovered above two-month lows on Thursday as some high-tech bellwethers bounced back after a searing sell-off although softer oil and copper prices and uncertainty over U.S. policy kept many investors cautious.

Major European stock futures are trading higher, with Germanys DAX futures FDXc1 up 0.4 percent, while those for Britains FTSE FFIc1 and Frances CAC FECc1 were each up 0.1 percent.

MSCIs broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.2 percent as some technology bellwethers rebounded, with Tencent (0700.HK) rising over 3 percent and Alibaba (BABA.K) more than 2 percent.

The MSCI index has slipped 4.5 percent from a 10-year peak hit on Nov. 23 as investors booked profits after stellar gains this year.

In Japan, the Nikkei .N225 jumped 1.5 percent, recouping much of its 2.0 percent loss the previous day, which was its biggest fall since late March.

Investors are looking to final tax reform legislation in the United States, where a potential U.S. government shutdown looms if Congress fails to agree on a spending package.

There are also fears of a violent backlash in the Middle East from President Donald Trumps recognition of Jerusalem as Israels capital.

I would say markets are going through a healthy correction after their rallies during the past three months, or six months. I dont think we need to panic, said Hirokazu Kabeya, chief global strategist at Daiwa Securities.

MSCI's gauge of stocks across the globe .MIWD00000PUS stood near Wednesday's two-week low while Wall Street's benchmark S&P 500 index .SPX edged down for its fourth straight session of losses.

A relentless selloff in U.S. technology shares, which has pressured global equities in recent weeks, subsided somewhat with S&P technology shares .SPLRCT bouncing 0.75 percent.

But the energy sector dragged the U.S. market lower overnight as oil prices dropped.

Oil prices flirted with two-week lows after a big fall on Wednesday, when a sharp rise in U.S. inventories of refined fuel suggested demand may be flagging, while U.S. crude production hit another weekly record.


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