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In Asian Equity Markets Japan’s Nikkei 225 shed 0.44% in morning trade, with shares of index heavyweight and robot maker Fanuc falling more than 1%. The Topix index also declined 0.33%. In South Korea, the Kospi fell 0.76%. Mainland Chinese stocks were mostly higher in early trade. The Shenzhen component advanced 0.64% while the Shanghai composite was largely flat. The Shenzhen composite advanced 0.67%. Hong Kong’s Hang Seng index also added 0.25%. The S&P/ASX 200 in Australia advanced 0.17%. Overall, the MSCI Asia ex-Japan index traded 0.2% lower.


In Currency Markets the U.S. dollar fell against the yen on Tuesday as receding hopes for a preliminary trade deal between the United States and China hurt demand for the greenback. The yuan touched a two-week low versus the greenback amid doubts about the U.S.-China trade war. The Australian dollar also fell after minutes from a Reserve Bank of Australia policy meeting showed central bankers considered cutting rates this month. The dollar fell 0.11% to 108.55 yen, following a 0.09% decline on Monday. The dollar was quoted at $1.1067 per euro on Tuesday in Asia after falling to the lowest in almost two weeks.


In Commodities Markets U.S. oil prices fell for the second straight day on Tuesday amid market jitters over limited progress between China and the United States on rolling back trade tariffs, exacerbated by a rise in U.S. inventories. West Texas Intermediate (WTI) crude fell 10 cents or 0.18% to $56.95 a barrel, falling again from an eight-week high hit last Friday when hopes for the trade deal rose. Brent crude futures were down 12 cents, or 0.19%, at $62.32. Meanwhile a preliminary Reuters poll on Monday showing U.S. crude oil stockpile were seen rising for the fourth straight week also squeezed prices.


In US Equity Markets main indexes were very slightly higher on Monday after closing at records on Friday and investors digested mixed headlines on U.S.-China trade relations. The S&P 500 gained 0.10%, to 3,123.72 and the Nasdaq Composite added 0.18%, to 8,556.55. Shares of HP Inc fell 1.51% after the company rebuffed a $33.5 billion offer from Xerox Holdings Corp and said it was open to exploring a bid for the latter. Coty Inc gained 2.18% after the cosmetics maker said it would pay $600 million for a majority stake in Kylie Jenner’s make-up and skincare businesses.


In Bond Markets foreigners sold U.S. Treasuries in September, with outflows hitting their largest since December last year, data from the U.S. Treasury department showed on Monday, a move analysts said was consistent with central banks selling dollar assets to support their weak currencies. Foreign outflows totaled $34.324 billion in September, compared with an outflow of $30.479 billion in the previous month. Overseas investors have sold Treasuries in six of the last nine months. U.S. benchmark 10-year yields started September at 1.466%, rising by about 20 basis points to end the month at 1.673%.