In This Article:
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* MSCI ex-Japan falls near 8-mth highs
* Dollar eases for a fourth straight day after weak CPI, Fed minutes
By Swati Pandey
SYDNEY, April 11 (Reuters) - Asian stocks stepped back from near eight-month highs on Thursday and the dollar eased as European and U.S. central banks reinforced investor worries about the global economic outlook and trade protectionism.
In a fresh escalation of trade tensions, U.S. President Donald Trump has threatened new tariffs on goods from the European Union even as the Sino-U.S. trade dispute remains unresolved.
MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.3 percent after four straight days of gains took it to the highest since last August.
Chinese shares were subdued with the blue-chip CSI300 off 1 percent while Hong Kong's Hang Seng index stumbled 0.6 percent.
Australian shares also lost ground, pressured by political uncertainty after the country's prime minister called a national election for May 18.
Japan's Nikkei fell 0.3 percent as the yen strengthened.
"It has been another mixed day in the market with investors still searching for the next push one way or the other and the majority of products are trading at familiar levels," said Nick Twidale, Sydney-based analyst at Rakuten Securities Australia.
"Traders continue to operate in a ‘wait and watch’ mode as they look for the next opportunity in a cautious market. Two big event risks are now behind us with the ECB and Fed."
On Wednesday, the European Central Bank (ECB) kept its loose policy stance and warned that threats to global economic growth remained. The ECB has already pushed back its first post-crisis interest rate hike, and President Mario Draghi raised the prospect of more support for the struggling euro zone economy if its slowdown persisted.
"If, as we expect, growth in the euro-zone continues to disappoint over the coming months, we think that ECB policymakers will adopt an even more accommodative stance," analysts at Capital Economics wrote in a note.
'GREAT RETREAT'
Separately, data showed U.S. consumer prices increased by the most in 14 months in March but underlying inflation remained benign against a backdrop of slowing global economic growth.
Minutes from a March 19-20 meeting of Federal Reserve policymakers showed they agreed to be patient about any changes to interest rate policy as they saw the U.S. economy weathering a global slowdown without a recession in the next few years.
U.S. Treasury yields slipped in response, reinforcing expectations that the Fed would hold rates steady or possibly cut them by the end of the year.