Asian stock markets declined on Wednesday after renewed concern about a global economic slowdown and an escalation in trade tensions. Treasuries inched higher with the dollar.
Shares in Japan bore the brunt of losses, with equities seeing more modest declines in Hong Kong, Seoul and Shanghai. The S&P 500 Index fell for the first time in nine sessions as the Trump administration threatened tariffs on the European Union and the International Monetary Fund cut its global growth outlook to the lowest since the financial crisis.
Australian bonds climbed and the yield on 10-year Treasuries edged back down below 2.50%. The pound fluctuated as the European Union looked set to force the UK to delay Brexit for as long as a year.
Elsewhere, Saudi Aramco, the world’s largest oil company, received more than $100 bn in orders for its debut bond sale, kick-starting an offering with yields likely to fall in line with or below Saudi Arabia’s sovereign debt. Oil held losses as Russian President Vladimir Putin signaled caution on more output cuts.