The Nikkei 225 Stock Average retreated from an intraday high, after closing Monday at its highest since 1991. Stocks in Hong Kong underperformed as traders returned from a long weekend, and equities also fell in Australia and South Korea. China’s markets are shut throughout the week. Earlier, the S&P 500 Index finished higher, though more stocks fell than rose in the benchmark index. The pound rose following a report the U.K. is planning a compromise on Irish border rules, before pulling back.
Asian stocks were mixed after a muted U.S. trading session, with Japanese shares paring gains as the yen fluctuated after hitting its weakest against the dollar this year.
Global investor sentiment remains fragile, even after a deal between the U.S. and Canada to revamp the Nafta bloc with Mexico. Sino-American tensions remain in focus after the Chinese navy dispelled an American missile destroyer from waters near South China Sea islands, in China’s account of the incident. Meantime, political drama in Washington still swirls around President Donald Trump’s Supreme Court nominee, which may feed through to November congressional elections and affect the outlook for the administration’s agenda.
Elsewhere, oil consolidated at its highest in almost four years as a slowdown in U.S. drilling adds to concern over supply losses from Iran and Venezuela. Italian bonds extended their slide from last week, dragging European debt lower Monday as uncertainty persisted over a budget accord.
