🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

GLOBAL MARKETS-Asian shares buoyed by optimism on U.S.-China trade talks

Published 15/04/2019, 04:27 pm
GLOBAL MARKETS-Asian shares buoyed by optimism on U.S.-China trade talks
EUR/USD
-
UK100
-
US500
-
JP225
-
HK50
-
BAC
-
JPM
-
DE30
-
DX
-
LCO
-
UK100
-
ESZ24
-
CL
-
EU50
-
KS11
-
MIAPJ0000PUS
-
CSI300
-
DXY
-

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

* MSCI ex-Japan gains, Nikkei at 4-1/2-month top

* Sentiment boosted by China data, JPMorgan (NYSE:JPM) results

* Positive news on Sino-US trade talks whet risk appetite

By Swati Pandey

SYDNEY, April 15 (Reuters) - Asian shares neared nine-month highs on Monday after U.S. Treasury Secretary Steven Mnuchin said he hoped U.S.-China trade talks were approaching a final lap, while strong Chinese export and bank loan data boosted confidence in the global economy.

The optimism on trade together with the U.S. Federal Reserve pausing its rate tightening efforts and Britain lawmakers getting an extension on the country's exit from the European Union helped lift the mood in equities markets.

"U.S.-China trade concerns have receded, the Fed is no longer hiking rates and Brexit has been postponed, which all bodes well for risk assets," said Takashi Hiroki, chief strategist at Monex Securities.

In early European trades, the pan-region Euro Stoxx 50 futures STXEc1 , German DAX futures FDXc1 and London's FTSE futures FFIc1 each rose about 0.2 percent. E-Minis for the S&P 500 ESc1 were little changed.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS climbed 0.4 percent to its highest since late July. Chinese shares were buoyant, with the blue-chip CSI300 index .CSI300 rising 0.6 percent.

Hong Kong's Hang Seng .HSI added 0.3 percent while South Korea's KOSPI .KS11 rose 0.5 percent. Japan's Nikkei .N225 also joined the party, gaining 1.4 percent to close at its highest since early December.

On Saturday, Mnuchin said a U.S.-China trade agreement would go "way beyond" previous efforts to open China's markets to U.S. companies and hoped that the two sides were "close to the final round" of negotiations. whetting risk appetite, Reuters exclusively reported on Monday that U.S. negotiators have tempered demands that China curb industrial subsidies as a condition for a trade deal after strong resistance from Beijing. expect a relatively market-friendly U.S.-China deal," Bank of America Merrill Lynch (NYSE:BAC) global economist Ethan Harris said in a note. "In our view, market and political concerns will constrain future fights. Think 'skirmishes' rather than 'major battles.'"

The rally in Asia follows on from strong finish on Wall Street on Friday as traders cheered Chinese data showing exports rebounded in March to a five-month high while new bank loans jumped by far more than expected. have been fretting about a global growth slowdown this year as trade disputes and tighter financial conditions hit demand. Worryingly, the International Monetary Fund cut its outlook for the world economy for the third time in six months. have also been fears that weakness in key economies, including China, could spread to other countries, especially if elevated trade tensions between Beijing and Washington escalated further.

As a result, the Group of 20 industrialised nations have called for a trade truce, signalling world leaders are prepared to take action to curtail risks of a global economic slowdown. are next looking to China's March-quarter gross domestic product data due Wednesday. A Reuters poll predicted it would show growth slowing 6.3 percent from a year earlier, the weakest pace since the global financial crisis a decade ago. eyes are also on corporate earnings from major U.S. companies after quarterly results from JPMorgan JPM.N handily beat analyst estimates last week. currencies, the dollar index .DXY was 0.1 percent weaker at 96.863 against a basket of major currencies as demand for safe haven assets eased. It had slipped to a near three-week trough of 96.745 on Friday.

The Australian dollar AUD=D3 , which is often used as a proxy for China plays, was a tad softer at $0.7173 but still near a seven-week top touched last week.

The euro EUR= was a tad firmer at $1.1309 as dealers geared up for demand from Japan as Mitsubishi UFJ Financial closed in on its multi-billion-euro acquisition of DZ Bank's aviation-finance business. FRX/

The common currency was also supported by encouraging data from the euro zone where industrial output in February declined by less than expected. commodities, oil provided big milestones last week, with Brent breaking through the $70 threshold and the U.S. benchmark posting six straight weeks of gains for the first time since early 2016. O/R

Brent crude oil futures LCOc1 was last off 23 cents at $71.32 while crude futures CLc1 , the U.S. benchmark, eased 33 cents to $63.56.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Asia stock markets

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

https://tmsnrt.rs/2Dr2BQA

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Simon Cameron-Moore)

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.