TOKYO, June 20 Japanese government bond prices slipped on Tuesday as the market was pressured by rallying Tokyo shares and an overnight retreat in U.S. Treasuries, although firm demand at a liquidity-enhancing debt auction helped limit losses.
LONDON, June 20 (Reuters) - A 2.5 percent drop in oil prices to their lowest in seven months dragged stock markets off all-time highs on Tuesday, cooling a recovery in hi-tech shares as central bankers sent cautious signals on the outlook for growth and interest rates.
WALL STREET: The Standard & Poor's 500 index rose 20.31 points, or 0.8 percent, to 2,453.46 and surpassed its old record, set almost a week ago, by half a percent.
Askul Corp shares rose 8.9 percent, after the office supply vender on Monday revised up its profit forecast for the fiscal year that ended on May 20 and said it will pay an annual dividend. Britain's FTSE 100 added 0.3 percent to 7,547.11. Australia's S&P/ASX 200 edged down 0.5 percent to 5,774.60. USA shares were also set to drift higher, with Dow futures edging up 0.1 percent to 31,474.
KEEPING SCORE: Japan's benchmark Nikkei 225 added 0.8 percent to finish at 20,230.41. After being up more than 20 percent for the year, tech stocks in the S&P 500 fell sharply two Fridays ago on worries that they had risen too much, too quickly. South Korea's Kospi gained 0.4 percent to 2,370.90. Hong Kong's Hang Seng fell 0.2 percent to 25,863.03, while the Shanghai Composite fell 0.2 percent to 3,137.65. "Markets have been relatively capped, struggling to re-establish a strong uptrend", says Ric Spooner, chief market analyst at CMC Markets in Sydney.
A big focus for Asia is whether index provider MSCI will later in the global day open up its Emerging Markets Index to Chinese mainland shares which have restricted access for foreign investors.
One of the key drivers of Monday's United States rally were comments from influential New York Federal Reserve Bank president William Dudley, who reaffirmed the bank's plan to press on with its rate hikes and forecast of higher inflation.
The dollar was up slightly at 111.58 yen.
USA crude futures stood at $44.26 per barrel, about a half cent above its five-month low of $43.76 set on May 5. Brent crude, the worldwide standard, added 23 cents to $47.60. Brent crude, the worldwide standard, rose 22 cents to $47.13 a barrel.