Dollar struggles

SYDNEY: The dollar struggled in Asia on Tuesday as U.S. President Donald Trump´s focus on protectionism ahead of fiscal stimulus fuelled suspicions his administration might be content to gain a competitive advantage through a weaker currency.

The talk of trade wars came even as more data pointed to a welcome revival in activity worldwide. A survey of Japanese manufacturing out Tuesday showed the fastest expansion in almost three years as export orders surged.

Instead the uncertainty emanating from Washington kept Asian stocks subdued while aiding safe-haven Treasuries and the yen. MSCI´s broadest index of Asia-Pacific shares outside Japan edged up 0.4 percent, while Shangahi was flat and the Nikkei slipped 0.4 percent.

Spread betters pointed to a hesitant opening for European bourses while E-mini futures for the S&P 500 were a fraction softer.

Sentiment took an early knock when U.S. Treasury Secretary nominee Steven Mnuchin told senators that he would work to combat currency manipulation but would not give a clear answer on whether he views China as manipulating its yuan.