TOKYO, Nov 13 2017 : Asian shares stepped back in cautious early trade today as investors look to see whether U.S. Republicans can hammer a tax reform deal quickly, while the British pound fell on growing doubts over Prime Minister Theresa May’s leadership.
MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.15 percent while Tokyo’s benchmark Nikkei.N225 dropped 0.7 percent.
By Friday’s close on Wall Street, the S&P 500 index had snapped an eight-week winning streak as investors took profits after U.S. Senate Republicans had unveiled a new tax plan that differed from the House of Representatives’ version.
“All eyes are on what the Senate and the House of Representatives will do on their tax bills,” said Nobuhiko Kuramochi, chief strategist at Mizuho Securities.
In the currency market, the dollar also came under pressure from the uncertainty over the fate of the tax cut plans.
The euro EUR= traded at $1.1647, down slightly after having made its first weekly gain in four weeks last week.
The dollar fetched 113.58 yen JPY=, more than a full yen below its near seven-month high of 114.735 yen touched a week ago.
The British pound GBP=D4 came under renewed pressure, slipping 0.5 percent to $1.3120 after the Times of London reported on Sunday that 40 Tory lawmakers have agreed to sign a letter of no confidence in May.
Elsewhere, bitcoin fell to as low as $5,555 yesterday, logging a weekly fall of 22 percent, its biggest since early July as some traders dumped it for a clone called Bitcoin Cash.
The digital currency last traded at $5,948, down almost 25 percent from a record high of $7,888 touched on Wednesday.
Oil prices held firm in early Asian trade, propped up by concerns about the political instability in Saudi Arabia.
Brent futures traded at $63.63 per barrel, up 0.2 percent and not far from their two-year peak of $64.65 set last week.
U.S. crude futures were up 0.25 percent at $56.88. – Reuters