Reuters

Asian shares hovered above two-month lows on Thursday as some high-tech bellwethers bounced back after a searing sell-off although softer oil and copper prices and uncertainty over U.S. policy kept many investors cautious.

The dollar edged up against peers on Thursday, shaking off earlier losses versus the yen, supported by signs that investors’ risk appetites were improving again and by optimism on U.S. tax reforms.

U.S. Senate Republicans agreed to talks with the House of Representatives on sweeping tax legislation on Wednesday, amid early signs that lawmakers could bridge their differences.

The dollar edged higher against a basket of major currencies to hit a two-week high on Wednesday, as market participants grew more optimistic about lawmakers’ progress on U.S. tax legislation.

The Bank of Canada held interest rates steady on Wednesday, as expected, and took a cautious tone even as it said more rate hikes are likely in store amid diminishing slack in the labor market and signs of inflation pressures.

U.S. private employers created 190,000 jobs in November, down sharply from the month before and roughly in line with economists’ expectations, a report by a payrolls processor showed on Wednesday.

Tremors in technology stocks spread to Europe on Wednesday, with weaker metals prices and flagging financials also tripping up a rally that had taken world equities to record highs.

Sterling edged towards an eight-day low on Wednesday as growing uncertainty over the progress on Brexit negotiations weighed on the British currency with some investors unwinding long positions after a recent rally.

The dollar edged broadly lower in a quiet market on Wednesday as concerns about a possible U.S. government shutdown offset optimism about progress on tax reform legislation.

Asian stocks slipped across the board on Wednesday as various factors including weaker metals prices and monetary policy concerns in China soured investor risk sentiment.