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GLOBAL MARKETS-Asian shares mixed as wait goes on for elusive U.S.-China trade deal

Published 19/11/2019, 05:14 pm
© Reuters.  GLOBAL MARKETS-Asian shares mixed as wait goes on for elusive U.S.-China trade deal
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* Markets on edge, await signs of breakthrough on trade

* Chinese stocks rise; Japan, South Korea fall

* Currencies also becalmed, awaiting concrete news

By Tom Westbrook

SINGAPORE, Nov 19 (Reuters) - Asian share markets were mixed in subdued trade on Tuesday, pending clearer news on whether U.S.-China negotiations will reach a preliminary accord to end the prolonged trade war between the world's two largest economies.

"There are some lingering doubts over whether a phase one deal can be struck," Vishnu Varathan, head of economics and strategy at Mizuho Bank's Asia Treasury Department in Singapore, said. "The suspicion is that there's a lot more wrinkles to iron out than initially thought."

Meantime, hopes that Beijing will deliver some economic stimulus provided a boost to sentiment. broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.3%, with Shanghai blue chips .CSI300 gaining 0.6% and Hong Kong's Hang Seng .HSI up 1%.

Australia's S&P/ASX 200 .AXJO also rose, to close 0.7% higher. However Japan's Nikkei .N225 shed 0.4% and South Korea's Kospi 200 dropped 0.5%, while volumes were light across the board.

E-Mini futures for the S&P 500 ESc1 were 0.1% higher and European futures also pointed to a higher open, with EUROSTOXX 50 futures STXEc1 trading 0.3% higher.

Overnight, CNBC had reported the mood in Beijing was pessimistic about prospects of sealing an trade agreement with the United States. a new extension granted by Washington to let U.S. companies keep doing business with Chinese telecoms giant Huawei suggested a possible olive branch. neither morsel shed much light on progress in negotiations, and the listless trading suggested optimism over prospects for a deal was beginning to flag.

"The longer we go on, the more concerns will arise. The reality is the clock is ticking," said Michael McCarthy, chief market strategist at brokerage CMC Markets in Sydney.

The next deadline in the dispute is Dec. 15, when another round of U.S. tariffs on Chinese good is scheduled to take effect.

Wall Street's main indexes had traded mostly flat on Monday, looking for direction on trade, though they ended the day inching to record closing highs.

The Dow Jones Industrial Average .DJI rose 0.1%. The S&P 500 .SPX gained 0.05%, and the Nasdaq Composite . IXIC added 0.1%.

The yield on benchmark 10-year Treasury notes US10YT=RR drifted lower during Asian trading hours, but at 1.8084% it was above the U.S. close of 1.808% on Monday.

WAITING GAME

Currency markets were similarly range-bound. The safe-haven Japanese yen JPY= ticked higher to 108.60 yen per dollar.

The Australian dollar AUD= nudged 0.2% lower to $0.6797 after the central bank said it had seen a case for cutting rates this month. British pound GBP= settled at $1.2954 after hitting a one-month high overnight as four opinion polls showed Prime Minister Boris Johnson's Conservative Party on course for victory at the Dec. 12 election.

"Overall, risk-related plays will continue to be whipsawed by alternating headlines, but in the short term, risk-off plays may still have room to run as uncertainties persist," said Terence Wu, a strategist at OCBC bank in Singapore.

Spot gold XAU= , which has been closely tracking the fortunes of the Sino-U.S. trade dispute, was flat at $1,471.41 per ounce.

U.S. crude CLc1 dropped 0.42% to $56.81 a barrel. Brent crude LCOc1 fell to $62.26 per barrel.

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

https://tmsnrt.rs/2Dr2BQA

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