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GLOBAL MARKETS-Asia tries to see light in trade talks, Brexit votes

Published 22/10/2019, 01:27
© Reuters.  GLOBAL MARKETS-Asia tries to see light in trade talks, Brexit votes
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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

By Wayne Cole

SYDNEY, Oct 22 (Reuters) - Asian share markets edged ahead

on Tuesday amid cheery chatter about the chance of a Sino-U.S.

trade deal, while investors were sanguine yet another vote on

Brexit would still avert a hard exit.

A holiday in Tokyo kept turnover light and MSCI's broadest

index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added

a slight 0.13%.

Futures for Japan's Nikkei NKc1 were trading flat at

22,700, compared to Monday's index close at 22,548 .N225 .

South Korean stocks .KS11 rose 0.4%, while E-Mini futures for

the S&P 500 ESc1 were little changed.

U.S. 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on Chinese goods scheduled for December could be withdrawn if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. Trade-sensitive technology stocks .SPLRCT rose 1.1%,

pulling the S&P 500 .SPX up 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 108.60 JPY= while staying steady on a

basket of currencies to 97.307 .DXY .

The euro paused after its recent run higher and was last

trading quietly at $1.1151 EUR= .

Sterling held firm at $1.2972 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. "If 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."

In commodity markets, spot gold was idling at $1,483.70 per

ounce XAU= .

Oil prices were near flat as the market fretted about the

health of the global economy and the future for energy demand.

Brent crude LCOc1 futures inched up 7 cents to $59.03,

while U.S. crude CLc1 added 9 cents to $53.40 a barrel.

Asia stock markets https://tmsnrt.rs/2zpUAr4

Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA

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(Editing by Sam Holmes)

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