Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

GLOBAL MARKETS-Asian stocks rise on hopes for U.S.-China trade, monetary stimulus

Published 12/09/2019, 10:40 am
© Reuters.  GLOBAL MARKETS-Asian stocks rise on hopes for U.S.-China trade, monetary stimulus
EUR/USD
-
USD/JPY
-
XAU/USD
-
US500
-
AXJO
-
JP225
-
GC
-
ESZ24
-
CL
-
MIAPJ0000PUS
-

* U.S. and China extend olive branches before trade talks

* Focus on how far ECB will ease policy

* Oil recovers from overnight tumble

By Stanley White

TOKYO, Sept 12 (Reuters) - Asian stocks rose on Thursday on hopes for a thaw in U.S.-China trade frictions and expectations that the European Central Bank will kick off another wave of monetary easing by global central banks.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.2% and Japan's Nikkei stock index .N225 rose 1%. Australian shares .AXJO were up 0.41%.

U.S. stock futures jumped and safe-havens such as the yen and gold fell after U.S. President Donald Trump agreed to delay an additional increase in tariffs on Chinese goods by two weeks at the request of China's Vice Premier Liu He "as a gesture of good will." prices rose in Asia, rebounding from a tumble on Wednesday, on hopes OPEC members will cut output to support prices.

Any easing of concerns about the bruising trade war is likely to help equities extend their rally this month after a tumultuous August.

Investors also await an ECB meeting later on Thursday to see how far policymakers will go to support a flagging economy, given the risks posed by Britain's divorce from the European Union, commonly referred to as Brexit.

"Trump's comments are likely to put a little juice in the market, but it could be gone tomorrow," said Hugh Dive, chief investment officer at Atlas Funds Management in Sydney.

"Some in the market react to small changes in negotiating positions because Trump is negotiating in the open. I'm more concerned about Brexit, because there is some complacency in the EU about this."

U.S. stock futures ESc1 rose 0.57% in Asia on Thursday after the S&P 500 .SPX ended 0.72% higher in New York on Wednesday.

The dollar briefly rose to a six-week high of 108.04 yen JPY=EBS before paring gains slightly to trade up 0.12% at 107.36 yen.

Spot gold XAU= fell 0.23% to $1492.80 per ounce. GOL/

Trump's delay of additional tariffs on Chinese goods comes one day after China said it would exempt 16 types of U.S. products from import tariffs. world's two largest economies have been locked in a year-long battle over Beijing's trade practices that has threatened to push other economies into recession.

The gestures of goodwill raise hopes both sides can narrow their differences before working-level resume talks in mid-September and high-level trade negotiations that are expected in October.

The euro EUR=EBS held steady at $1.1013 but traded near a one-week low. The ECB is set to unveil fresh stimulus measures on Thursday but its exact moves are far from certain.

is at risk of falling into recession and inflation expectations sliding, but ECB President Mario Draghi, who hands over the leadership of the central bank to Christine Lagarde at the end of October, will face resistance to aggressive easing from more conservative ECB members. crude CLc1 ticked up 0.77% to $56.18 in Asia on Thursday. Futures tumbled more than 2% on Wednesday following a report that Trump is considering easing sanctions on Iran, which could potentially boost oil supplies.

Asian traders were likely focused on OPEC's decision on Wednesday to cut its forecast for global oil demand in 2020. OPEC also said all producers have a shared responsibility to support the oil market. by Lincoln Feast.)

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.