Stocks pause, currencies mixed on Trump tariff concerns
Japanese yen strengthens to 3-week high versus dollar
Mexican peso, Canada's loonie, yuan near Tuesday's low
New Zealand dollar rebounds after RBNZ opts for 50 bp rate cut
Oil steadies as market contemplates MidEast ceasefire impact
Updates at 0910 GMT
By Medha Singh and Kevin Buckland
Nov 27 (Reuters) - Global stocks paused onWednesday and currencies were mixed asinvestors worriedover the next potential target for U.S. tariffs underPresident-elect Donald Trump, a day after he pledged new levies on Canada, Mexico and China.
The safe-haven Japanese yenextended its strong run, climbing to a three-week high on the U.S. dollar, which was in turn weighed down by sagging Treasury yields.
MSCI's broadest index of Asia-Pacific shares .MIAP00000PUS recouped slight, early losses to edge 0.1% higher.
The pan-European STOXX 600 .STOXX lost 0.4%, while the S&P 500 pointed to a slightly lower start. Earlier, Asian stocks lost their footing on Trump's tariff pledges with equities in Japan .N225, Taiwan .TWII and South Korea .KS11 leading losses.
Stocks in China and Hong Kong rebounded from recent lows on bets that Beijing will roll out more supportive policies to counter risks of U.S. tariffs and shore up the sluggish Chinese economy. .SS
Trump said late on Monday that hewould immediately put a 25% tariff on all products from Mexico and Canada upon taking office in January, and slap an additional 10% tariff on goods from China. The threat drewwarnings of retaliation.
Trump also chose trade lawyer Jamieson Greer as his new U.S. trade representative , a key veteran of his first-term trade war against China. U.S. bond markets this week have taken heart to his pick for U.S. Treasury secretary over the weekend that spurred hopes of reining in government debt load.
"We're trying to get our heads around very volatile communication where on the one hand you have very aggressive and uncompromising news on tariffs but on the other hand a pretty pragmatic pick for Treasury secretary," said Samy Chaar, chief economist at Lombard Odier.
Trump's policies are "relatively positive for U.S. business conditions but probably more challenging for the rest of the world that will have to adjust and find a path to avoid disruptions and more expensive access to U.S. markets."
Canada's loonie CAD= and Mexico's peso MXN= hovered near their multi-year lows on Tuesday, while China's yuan CNH=D3 edged back towards the previous session's four-month trough.
The U.S. dollar dropped against other major rivals, falling 0.2% to $1.0515 per euro EUR=EBS and easing slightly to $1.26 against sterling GBP=D3. It slid almost 1% to 151.660 yen.
Investors seem to be taking some risk off the table as trading in November draws to close ahead of U.S. Thanksgiving holiday onThursday, with manyinvestors extending their break into Friday. Tradersare also keeping an eye on a reading on a keyinflation gauge, the PCE deflator, due later on Wednesday.
"We need to remember from (Trump's) first term, these agenda are changeable depending on how the policy priorities change, and what he can get in terms of the negotiations with various countries," said Keiko Kondo, head of multi-asset investments for Asia at Schroders, adding that based on the firm's estimates, nearly 40% of Trump's promises during his time in office were not delivered.
"We just need to sort of wait and see."
The New Zealand dollar NZD=D3 rebounded 0.9%to $0.5887 from multi-month lows after the country's central bank opted to cut interest rates by 50 basis points on Wednesday, disappointing some in the market who had bet on a bigger reduction.
The largest cryptocurrencybitcoin BTC= attempted to find its feet after a four-day retreat from a record high of $99,830. It was last up 1.7%at $93,211.
Gold XAU= ticked up 0.3%to about$2,649 per ounce.
Oil prices stabilized asmarkets assessed the potential impact of a ceasefire deal between Israel and Hezbollah, ahead of Sunday's OPEC+ meeting. O/R
Brent crude futures LCOc1 edged 0.1% lower to$72.72 a barrel, while U.S. West Texas Intermediate crude futures CLc1 were up 0.1% at$68.84 a barrel.
World FX rates YTD http://tmsnrt.rs/2egbfVh
Asian stock markets https://tmsnrt.rs/2zpUAr4
Reporting by Kevin Buckland; Additional reporting by Tom Westbrook; Editing by Christopher Cushing and Kim Coghill
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