Stocks ease


    TOKYO- Asian shares dipped on Thursday as tight liquidity conditions in China curbed buying for now, though improving corporate earnings, expectations of large US stimulus and subsiding retail frenzy all supported risk sentiment.

    US bond prices extended their decline, with the 30-year yield hitting its highest level since March, following stronger economic data and a push in Washington to pass a massive relief plan.

    MSCI’s ex-Japan Asian-Pacific index fell 0.2 percent while Japan’s Nikkei lost 0.4 percent, both snapping a three-day winning streak.

    Asian shares were hampered by tight liquidity in China after the country’s short-term interest rates rose again, reversing falls in the previous two days.

    “In Asia, risk assets have been sensitive to liquidity conditions in China as authorities have been tightening their stance in recent weeks,” said Masahiko Loo, portfolio manager at AllianceBernstein.

    Higher interest rates raised worries Chinese policymakers may be starting to shift to a tighter stance to rein in share prices and property markets.

    The lackluster start to Asian trade followed a tepid Wall Street session.

    The S&P 500 gained 0.10 percent while the Nasdaq Composite lost 0.02 percent. NYSE Fang+ index of leading tech giants hit an intraday record high, thanks to 7.4 percent gain in Google parent Alphabet following its strong earnings.

    Markets on the whole have calmed significantly in the past few days with measure of investors’ expectations on market volatilities such as the Cboe Volatility index slipping back to the lowest levels in over a week.