* The former MSCI Japan invests the first gains, falls from the top of 3 weeks
* Chinese, HK shares less, CSI300 index 1%
* The dollar softens to a two-week low
* Crude oil prices rise with hopes of economic recovery
SYDNEY, April 7 (Reuters) – Asian stocks retreated from a three-week high on Wednesday, dragged down by Chinese equities, although investors were still focused on the company’s next gains to show more signs of recovery world economic.
Eurostoxx 50 futures fell 0.1%, German Dax futures barely changed, while London FTSE futures rose 0.4%. The future E-Mini for the S&P 500 was mostly flat.
Previously, MSCI’s broader Asia-Pacific stock index outside of Japan had started on a firm basis, at 697.01 points, a level last seen on March 18th.
However, it succumbed to selling pressure and fell 0.1% for the last time after Chinese and Hong Kong stocks opened in the red after a sharp rise last week.
China’s CSI300 bluechip index fell about 1%, while Hong Kong’s Hang Seng index fell 0.8%.
Geopolitical tensions in the region added to the unrest.
Taiwan’s foreign minister said Wednesday he would fight to the end if he attacked China, adding that the United States saw the danger that this could happen amid Chinese military pressure, including aircraft carrier exercises, nearby. of the island.
The rest of the Asian markets were still positive.
Japanese Nikkei was a higher tone, while Australian stocks rose 0.6% and South Korean KOSPI added 0.3%. New Zealand finished 0.7% higher.
Broadly speaking, the successful deployment of vaccines in the United States and the United Kingdom, along with strong macroeconomic data, have increased investor risk appetite, helping stocks and assets in emerging markets.
“The U.S. economy is experiencing the first effects of a powerful double-dose vaccine of high inoculation and fiscal stimulus,” said David Kelly, chief global market strategist at JP Morgan Asset Management.
“The reality is that forecasts remain uncertain … (but) early signs show that recovery is accelerating, suggesting a faster return to normalcy than many had dared to expect a few months ago,” he said. add Kelly.
Overnight, the three major Wall Street indices closed lower, a day after the S&P 500 and Dow rose to record levels driven by a stronger-than-expected job report last Friday and data that show a dramatic rise in the U.S. service industry on Monday.
Investors also weighed in with the latest job vacancy report in the U.S., which showed vacancies rose to a two-year high in February, while hiring had the biggest gain in nine months, amid a increased COVID-19 vaccinations and an additional government stimulus.
In addition, the International Monetary Fund raised its global growth forecast to 6% this year from 5.5%, reflecting a rapid and bright outlook for the US economy.
The next profit season is expected to show S&P profit growth of 24.2% over the previous year, according to Refinitiv data, and investors will see if corporate results further confirm positive economic data recent.
Elsewhere, all eyes will be on the minutes of the U.S. Federal Reserve political meeting with a rally at U.S. treasuries that will run through Wednesday. Ten-year yields fell to 1.6455%, to 1.776% on March 30th.
Five-year U.S. Treasury yields fell sharply to 0.874%, weighing on the U.S. dollar.
The five-year Treasury yield is seen as a major barometer of the amount of faith investors have in the Federal Reserve’s promise not to raise interest rates until 2024.
The dollar rebounded from a two-week low of 92,246 against a basket of world currencies.
The euro was flat at $ 1.1874, the pound sterling was slightly weaker at $ 1.3788, while the Japanese yen was lower at 109.77.
In commodities, futures on Brent crude were flat at $ 63.74 a barrel, while U.S. crude rose from 2 cents to $ 59.35.
Black gold was $ 1,741.4 an ounce.
Report by Chibuike Oguh in New York and Swati Pandey in Sydney; Edited by Christopher Cushing, Ana Nicolaci da Costa and Kim Coghill