World stocks turn lower as investors monitor volatile dollar

A man looks at an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo, Wednesday, Jan. 18, 2017. Most Asian stock indexes lacked direction Wednesday following a sharp correction overnight in the dollar that sapped investor momentum. (AP Photo/Eugene Hoshiko)
A woman walks past an electronic stock board showing world market indexes at a securities firm in Tokyo, Wednesday, Jan. 18, 2017. Most Asian stock indexes lacked direction Wednesday following a sharp correction overnight in the dollar that sapped investor momentum. (AP Photo/Eugene Hoshiko)
A man walks past an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo, Wednesday, Jan. 18, 2017. Most Asian stock indexes lacked direction Wednesday following a sharp correction overnight in the dollar that sapped investor momentum. (AP Photo/Eugene Hoshiko)

HONG KONG — World stocks mostly fell Wednesday after a sharp drop in the dollar shook investor enthusiasm.

KEEPING SCORE: In Europe, Germany's DAX shed 0.1 percent to 11,535 and Britain's FTSE 100 was flat at 7,2223. France's CAC 40 lost 0.6 percent to 4,828. U.S. shares were poised to open flat, with Dow and S&P 500 futures both roughly unchanged.

DOLLAR'S DIVE: The dollar leveled off a day after slumping against peers including the yen, euro and pound. One factor behind the currency fluctuations was British Prime Minister Theresa May's speech about Britain's pending departure from the European Union, which soothed investors following months of uncertainty about the plan for an exit following the June vote. Comments by U.S. President-elect Donald Trump about the dollar being "too strong" and hurting U.S competitiveness with China also helped push down the currency.

QUOTEWORTHY: Initial investor optimism over Trump's promises to bring in business-friendly policies has been waning as reality sets in, suggested Jingyi Pan, market strategist at IG in Singapore. "The market has been anticipating better clarity into the economic plans of the new administration for months and weeks, expected to come as President-elect Donald Trump steps into office" on Friday, said Pan. "Last Wednesday's press conference and the latest set of comments from ... Trump have probably been a preview for more volatility instead as the market stands ready to adjust expectations."

ASIA'S DAY: Japan's benchmark Nikkei 225 index recouped early losses to end 0.4 percent higher at 18,894.37 while South Korea's Kospi edged 0.1 percent lower to 2,070.54. Hong Kong's Hang Seng jumped 1.1 percent to 23,098.26 as local stocks were poised to benefit from the dollar's weakness due to the city's currency peg to the dollar. The Shanghai Composite in mainland China added 0.1 percent to 3,113.01 and Australia's S&P/ASX 200 fell 0.4 percent to 5,678.80.

CURRENCIES: The British pound, which surged against the dollar after May's speech, eased to $1.2279 from $1.2393 in late trading Tuesday. The dollar edged up to 113.36 yen from 112.79 yen, but is down 1.4 percent for the week so far against the Japanese currency. The euro slipped to $1.0686 from $1.070.

ENERGY: Benchmark U.S. crude oil fell 79 cents to $51.69 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 11 cents on Tuesday. Brent crude, used to price international oils, dropped 70 cents to $54.77.

People also read these

China plans 30,000-km high speed rail network by 2020

Dec 29, 2016

The Chinese government is planning to expand the country's high-speed rail network to 30,000...

McDonald's sells China business in deal worth up to $2.1B

Jan 9, 2017

Fast-food giant McDonald's is selling a controlling stake in its China business to a group of...

World stocks turn lower as investors monitor volatile dollar

Jan 18, 2017

World stocks are mostly lower after a sharp drop in the dollar sapped investor enthusiasm

China's growth edges up but 2016 weakest year since 1990

Jan 20, 2017

China reports its economy picked up pace in the last quarter, though its full-year performance was...

China's exports jump 7.9 pct in January from year earlier

Feb 10, 2017

China reports its exports rose 7.9 percent in January over a year earlier, rebounding from the...

AseanCoverage is a next-gen news site focusing exclusively on online news from South East Asia.

Contact us: sales[at]aseancoverage.com