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Hong Kong leads Asian stocks lower, oil near five-month flames of Reuters

© Reuters. A woman points to an electronic board showing stock quotes that she stands in front of the board following the New Year's opening at the Tokyo Stock Exchange (TSE), which was held to succeed Japan's stock market in Tokyo

By Hideyuki Sano

TOKYO (Reuters) ̵

1; Asian shares fell on Thursday when Hong Kong's market fell during the second session after a day of massive street protests, while oil prices flirted with five-month low declines due to higher stocks and a bleak demand.

Hopes that the United States and China will make a deal on the side of a group of the 20 summit in Osaka on 28-29 June, has become bleaching, also damaging emotions and driving bond yields. [19659004] "There is not even a plan for ministerial level bilateral meetings before the G20 summit. You cannot expect any major agreements," said Hirokazu Kabeya, world-leading strategist at Daiwa Securities.

MSCI's widest index for Asia Pacific stocks outsi de Japan fell as much as 1%, as Hong Kong fell 1.5% after Wednesday's 1.7% fall.

The sales pressure in Hong Kong came after a mass demonstration against legislation that would allow citizens to be handed over to China triggered a mass protest and some of the worst concerns seen on the territory since the UK left it back to Chinese rule in 1997.

Japan lost 0.8% while US stock futures lost 0.3% in Asia, after small losses last day when shed 0.20%.

Oil fluctuated close to five months of low downturns, pushed by another unexpected increase in US commodities, as well as the paler demand outlook caused by the prospect of a prolonged trade war between China and the United States.

futures barely moved at $ 60.06 in early trading after a 3.7% slide on Wednesday to $ 59.97 a barrel, the international benchmark's lowest close since January 28.

U.S. West Texas Intermediate Crude futures amounted to $ 51.12 per barrel, compared to the previous day's $ 50.72 a barrel, the weakest settlement since January 14.

"It's a bit of a mystery that oil prices are so low when global stock prices continue to be relatively supportive. But one thing is certain. Weaker oil prices will strengthen inflation and increase the pace of cutting the average," says Daiwas Kabeya.

data showed on Wednesday US consumer prices rose slightly in May, with annual annual inflation slowing to 2.0% over a peak of 2.4% in July, contributing to the growing expectations of a Federal Reserve cut in the coming months

Investors will look at what Fed policy makers say after their next policy meeting on June 18, 19, with Fed Funds rate futures pricing in a 25-point price cut for the subsequent policy review on July 30 -31.

10-year US government bonds were lowered to 2.103 percent, near Friday's 2,053 percent, the lowest level since September 2017.

Bond rates fell in Asia Long-dated Japanese government bond yields hit their lowest levels since August 2016, with 20-year returns down 2.5 points at 0.220 percent.

In Australia, which was long known for its high-yield currency, interest rates on record wages fell by three-year yields now slipping below 1 percent.

In the foreign exchange market, the yen rose 0.25% to $ 108.25, when the risk was lowered while the Australian dollar fell by 0.2% to $ 0.6913.

The euro was slightly changed to $ 1,1229, after US President Donald Trump had said he was considering sanctions over Russia's Nord Stream 2 pipeline project and warned Germany to be dependent on Russia for energy.

British Pounds are lagging behind British legislators defeating an attempt led by the opposition Labor Party to try to block a lack of Brexit by taking control of the parliamentary agenda of the government.

Sterling downloaded $ 1,268, not far from this week's low of $ 1,2653.

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