* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Push for Trump impeachment increases political risk
* Asian stocks track Wall Street lower
* Oil falls on worries about global economy
By Stanley White
TOKYO, Sept 25 (Reuters) - Asian stocks fell the most in
three weeks on Wednesday after U.S. lawmakers called for an
impeachment inquiry into President Donald Trump, increasing the
prospects of prolonged political uncertainty in the world's
largest economy.
The dramatic move by Democrats in the House of
Representatives compounded investors' anxieties with confidence
already shaken by U.S.-China trade tensions and global recession
risks.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 0.86%, the biggest decline since Sept. 3,
while Tokyo's Nikkei .N225 slipped 0.39% for its largest loss
in three weeks. Australian shares .AXJO fell 0.54%.
The downturn in Asia extended to Europe, with Euro Stoxx 50
futures STXEc1 off 0.20%, those for Germany's DAX FDXc1
down 0.30% and FTSE futures FFIc1 off 0.26%.
Chinese shares slumped and the offshore yuan fell, while oil
futures extended declines after Trump harshly criticised
Beijing's trade practices in a speech at the United Nations,
damping hopes for a resolution to the U.S.-China trade war.
"The impeachment probe has put a dent in Asian shares,"
said Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ
Kokusai Asset Management Co in Tokyo.
"Chinese shares were already exposed to downside risks.
Trump's comments likely increased those risks. There are worries
about U.S. consumer sentiment. There are also concerns that
China's economic slowdown hasn't stopped."
Sterling fell against the dollar, giving up some of its
overnight gains, as persistent uncertainty over how Britain will
complete its divorce from the European Union dogged the pound.
On Tuesday, the UK Supreme Court ruled that Boris Johnson's
decision to shut down parliament in the run-up to Brexit was
unlawful, a stinging judgment that undermined the prime
minister's already fragile grip on power. U.S. stock futures ESc1 rose 0.19% in Asia on Wednesday,
but those gains didn't translate into better sentiment for
regional share markets.
The push for an impeachment inquiry and disappointing U.S.
economic data weighed on Wall Street on Tuesday, driving the S&P
500 .SPX 0.84% lower, its biggest daily decline in a month.
The U.S. House of Representatives will launch a formal
impeachment inquiry over whether Trump sought help from the
Ukraine to smear former Vice President Joe Biden, a front-runner
for the 2020 Democratic presidential nomination. Trump has
denied the claims. It is unlikely that the impeachment inquiry would lead to
Trump's removal from office. Even if the Democratic-controlled
House voted to impeach Trump, the Republican-majority Senate
would have to take the next step of removing him from office
after a trial. However, the development injects fresh uncertainty into
financial markets, which have already been roiled by political
disquiet in Hong Kong to Britain to Italy and the Middle East.
"If an impeachment enquiry looks like ending his re-election
chances in 2020, he may throw caution to the wind and harden his
attitude to a China trade deal, increasing the chances of a
global recession next year," said Jeffrey Halley, Senior Market
Analyst, Asia Pacific, OANDA.
The dollar index .DXY measuring the greenback against a
basket of six major currencies was 0.20% higher.
Chinese shares .CSI300 fell 0.55% while shares in Hong
Kong .HSI skidded by 1.01%.
In the offshore market, the dollar CNH=D3 rose 0.17% to
7.1184 yuan.
Trump said on Tuesday Beijing had failed to keep promises it
made when China joined the World Trade Organization in 2001 and
was engaging in predatory practices that had cost millions of
jobs in the United States and other countries. U.S. crude CLc1 dipped 0.59% to $56.95 a barrel. Brent
crude LCOc1 fell 0.82% to $62.58 per barrel.
The U.S.-China trade war, which has dragged on for more than
a year, has added pressure on China's already slowing economy
and has increased the risk of recession in other countries.
Slower global growth would hurt demand for energy and other
commodities.
Sterling traded at $1.2465 GBP=D3 , down 0.26%, having
trimmed some of its overnight gains made following the UK court
ruling.
In response to the UK Supreme Court's decision, Johnson said
he disagreed and vowed that Britain would leave the EU by Oct.
31 deadline, come what may.
Calls for Johnson's resignation could grow, which would cast
even more uncertainty over how the UK would complete its divorce
from the EU.
The yield on benchmark 10-year Treasury notes US10YT=RR
rose to 1.6576%, while the two-year yield US2YT=RR rose to
1.6216%.
Asian countries top export items to China https://tmsnrt.rs/2NyAIcQ
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