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GLOBAL MARKETS-Asia looks on bright side of Brexit, trade talks

Published 22/10/2019, 03:57 pm
© Reuters.  GLOBAL MARKETS-Asia looks on bright side of Brexit, trade talks
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* Asian stock markets : https://tmsnrt.rs/2zpUAr4

* Asian trade quiet with Tokyo off, no major data due

* Trump, Kudlow sound upbeat on China trade talks

* Pound holds firm as more Brexit votes loom

* Trudeau's Liberals to form minority govt after election

By Wayne Cole

SYDNEY, Oct 22 (Reuters) - Asian shares made guarded gains on Tuesday amid optimism about prospects for a Sino-U.S. trade deal, while investors were sanguine yet another vote on Brexit would still avert a hard exit for Britain.

A holiday in Tokyo kept turnover light and MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added a modest 0.4%.

Futures for Japan's Nikkei NKc1 were trading at 22,760, compared to Monday's index close at 22,548 .N225 . South Korean stocks .KS11 rose 0.9% but Shanghai blue chips .CSI300 slipped 0.2%.

E-Mini futures for the S&P 500 ESc1 gained 0.17% and EUROSTOXX 50 futures STXEc1 0.14%.

China and the United States have achieved some progress in their trade talks, Vice Foreign Minister Le Yucheng said on Tuesday, adding that as long as both sides respected each other, no problem could not be resolved. President Donald Trump sounded upbeat on a China deal on Monday, while White House adviser Larry Kudlow said tariffs on Chinese goods scheduled for December could be withdrawn if talks go well. technology stocks .SPLRCT rose 1.1%, helping lift the S&P 500 .SPX 0.69% and near to a record closing high. The Dow .DJI gained 0.21%, while the Nasdaq .IXIC rose 0.91%. .N

The better mood saw safe-haven bonds extend their recent pullback, with 10-year Treasury yields US10YT=RR at a five-week peak of 1.80%. US/

In foreign exchange markets, the dollar found support against the yen at 108.64 JPY= while staying steady on a basket of currencies to 97.297 .DXY .

The euro paused after its recent run higher and was last trading quietly at $1.1151 EUR= .

Sterling held firm at $1.2980 GBP=D3 after Prime Minister Boris Johnson failed to get a vote on his Brexit deal and will try again on Tuesday to get the first stage of a withdrawal bill through Parliament. the House of Commons vote in favour of the deal, GBP/USD could rally towards $1.3500 over the medium term. The UK would then enter a transition period that lasts until 31 December 2020," said Kim Mundy, a currency strategist at CBA.

"If the Commons rejects the deal, GBP/USD will likely stabilise around $1.2800, because the risk of a hard Brexit will remain low," he added. "Early UK general elections would be the next most logical way forward."

The Canadian dollar kept its recent gains at C$1.3076 per U.S. dollar CAD= as CBC TV predicted the ruling Liberal government of Justin Trudeau had won re-election but with a minority government. commodity markets, spot gold was idling at $1,484.25 per ounce XAU= .

Oil prices were little moved as the market fretted about the health of the global economy and the future for energy demand. O/R

Brent crude LCOc1 futures were down 2 cents at $58.94, while U.S. crude CLc1 added 4 cents to $53.35 a barrel.

https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations

https://tmsnrt.rs/2Dr2BQA

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Richard Borsuk & Shri Navaratnam)

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