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Asia shares slip after Wall St losses

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(Globalpost/GlobalPost)

Asia's markets slipped for a second day Tuesday, after the Dow and S&P 500 in Wall Street retreated from record highs as analysts warned a recent equities rally could come to a sudden halt.

Investors are hoping to get a better handle on the state of the global economy with the release this week of Chinese economic data as well as minutes from the Federal Reserve's most recent policy meeting.

Tokyo slipped 0.77 percent, Sydney lost 0.23 percent, Shanghai fell 0.14 percent and Seoul was down 0.16 percent, while Hong Kong was flat.

After a long, Independence Day weekend US shares returned on Monday for the first time since Thursday's better-than-expected jobs report.

However, they ended in the red on profit-taking while there were warnings that global markets could be headed for further losses after enjoying a positive run-up in the past few weeks, which has seen the Dow and S&P 500 touch new records.

Nobel prize-winning economist Joseph Stiglitz said in a television interview that he was "very uncomfortable" with current stock prices, while Raymond James managing director Jeffrey Saut said in a note that stocks are vulnerable to a 10-12 percent decline in the weeks ahead.

The Dow slipped 0.26 percent after breaking 17,000 for the first time on Thursday, while the S&P 500 eased 0.39 percent while the Nasdaq declined 0.77 percent.

The dollar also dipped in New York, sitting at 101.87 yen late in trade, well down from the 102.11 yen in Tokyo earlier in the day.

On Tuesday morning the greenback bought 101.74 yen.

The euro fetched $1.3607 and 138.45 yen in Japan, against $1.3604 and 138.59 yen in US trade.

On Wednesday the Fed is due to release its minutes from the most recent policy meeting.

Rakuten Securities senior market analyst Masayuki Doshida telling Dow Jones Newswires: "Attention is now turning to US corporate earnings, and the US Fed's stance on monetary policy, especially the pace of stimulus tapering after last week's strong jobs data."

Also Wednesday China will announce inflation data for June, following that up with trade figures on Thursday. There are hopes for another upbeat set of results following a recent string of good news, including on manufacturing activity.

In Seoul Samsung Electronics was 0.23 percent higher despite warning of a 25 percent plunge in its operating profit in the second quarter of the year as its smartphone business grapples with a strong won and cheap rivals from China.

Analysts said the weak figures had already been priced in, resulting in a more than 10 percent fall since early June.

Oil prices edged down. US benchmark West Texas Intermediate for August delivery eased four cents to $103.49 while Brent crude for August was down 12 cents to $110.12.

Gold fetched $1,317.29 an ounce at 0215 GMT compared with $1,314.03 late Monday.

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