Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

CORRECTED-GLOBAL MARKETS-Asian shares at 18-month highs; Nikkei finishes year up 18%

Published 30/12/2019, 06:35 pm
EUR/USD
-
USD/JPY
-
UK100
-
XAU/USD
-
US500
-
DJI
-
AXJO
-
JP225
-
DE30
-
DX
-
GC
-
LCO
-
UK100
-
CL
-
EU50
-
IXIC
-
US2YT=X
-
US10YT=X
-
MIAPJ0000PUS
-
CSI300
-
DXY
-

(Corrects to clarify June 19 milestone in paragraph 4 was in 2018, and changes slug for media clients to Wrapup 3)

* MSCI Asia ex-Japan +0.05%, trims gains

* European shares expected to fall after recent rallies

* Nikkei ends year up more than 18%, fell 12.1% in 2018

* China rate reform, retail sales boost bullish mood

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Andrew Galbraith

SHANGHAI, Dec 30 (Reuters) - A broad gauge of Asian share markets rose to an 18-month high on Monday as Chinese equities gained, while oil touched three-month highs on a combination of U.S. crude inventory drawdowns, trade optimism and unrest in the Middle East.

But European shares were expected to open lower as investors take a breather from recent rallies.

In early European trade, the pan-region Euro Stoxx 50 futures STXEc1 were down 0.16% at 3,764, German DAX futures FDXc1 were down 0.22% at 13,291.5 and FTSE futures FFIc1 were down 0.11% at 7,578.5.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose to its highest since June 19, 2018, before trimming gains. It was last up 0.05%.

Chinese blue chips .CSI300 , which had started the day lower, were up 1.13% in afternoon trade, bolstered by a report that 2019 retail sales are forecast to rise 8% and expectations that a new benchmark for floating-rate loans could lower borrowing costs and boost flagging economic growth. Australian shares .AXJO finished 0.25% lower as investors continued to consolidate recent gains.

Japan's Nikkei stock index .N225 finished its last trading day of the year down 0.76%. The index gained 18.2% in 2019 after dropping 12.8% last year.

Easing trade war worries and reduced uncertainty over the United Kingdom's plans to leave the European Union after British elections returned a strong Conservative majority have offered a lift to global equities this month, helping the broad MSCI Asia index rise more than 6% and putting it on track for its strongest month since January.

Kay Van-Petersen, global macro strategist at Saxo Capital Markets, said that limited liquidity near the year-end and the easing of U.S.-China trade and Brexit uncertainties has "just left us drifting up higher. So even if there is a pullback... I don't think it's going to be significant by any means."

Global equity markets gained late last week, with the S&P 500 .SPX and the Dow Jones Industrial Average .DJI closing at records on Friday.

The Dow ended 0.08% higher at 28,645.26 and the S&P .SPX edged up just 0.11 points to 3,240.02. The Nasdaq Composite .IXIC lost steam at the close, falling 0.17% to 9,006.62.

Oil also gained on Friday, with prices posting their fourth consecutive weekly gain to steady around their highest in three months.

On Monday, global benchmark Brent crude LCOc1 was up 0.31% to $68.37 per barrel, while U.S. West Texas Intermediate crude added 0.13% to $61.80, reversing an earlier decline.

Oil's gains followed news of U.S. air strikes in Iraq and Syria against Kataib Hezbollah, an Iran-backed militia group. U.S. officials said Sunday that the attacks were successful, but warned that "additional actions" may be taken to defend U.S. interests. Stephen Innes, strategist at AxiTrader, said that the rise of shale oil production in the United States would offset any geopolitical risks.

"Shale can really ramp up more volumes to accommodate any shortfall that could possibly be triggered by escalation in Syria," he said, adding that an upsurge in populism in Iraq posed a larger risk to markets.

Iraq's oil ministry said on Sunday that the halting of oil production at Iraq's southern Nassiriya oilfield by protestors would not affect the country's exports and operations. prices were also supported by a bigger-than-expected decline in crude inventories in the United States, the world's biggest fuel consumer. Stockpiles fell by 5.5 million barrels in the week to Dec. 20, far exceeding a 1.7-million-barrel drop forecast in a Reuters poll, the government data showed on Friday. also continued its run-up, boosted by a weak dollar, after posting its best week in more than four months on Friday amid thin trading volumes.

The precious metal on Monday rose 0.3% to $1,515 per ounce on the spot market. XAU= GOL/

In the currency markets, the dollar was 0.27% lower against the yen at 109.11 JPY= and the euro EUR= was up 0.23% on the day at $1.1201.

The dollar index .DXY , which tracks the greenback against a basket of six major currencies, was down 0.14% to 96.786.

The yield on benchmark 10-year Treasury notes US10YT=RR was at 1.877% compared with its U.S. close of 1.873% on Friday, while the two-year yield US2YT=RR edged down to 1.5812% compared with a U.S. close of 1.589%.

https://tmsnrt.rs/35e0rMY

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.