Black Friday Sale! Save huge on InvestingProGet up to 60% off

GLOBAL MARKETS-Asian shares rise on conciliatory trade tone but mood cautious

Published 30/08/2019, 01:45
© Reuters.  GLOBAL MARKETS-Asian shares rise on conciliatory trade tone but mood cautious
EUR/USD
-
GBP/USD
-
XAU/USD
-
AXJO
-
JP225
-
JPM
-
USD/CNY
-
GC
-
CL
-
US10YT=X
-
KS11
-
MIAPJ0000PUS
-
DXY
-

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

* MSCI ex-Japan up 0.4%, Nikkei jumps 1%

* U.S., China to have face-to-face trade talk in Sept

* Analysts remained cautious about prospect of trade deal

* Currencies muted; gold, silver off recent highs

By Swati Pandey

SYDNEY, Aug 30 (Reuters) - Asian shares ticked higher on

Friday as China struck a hopeful tone on trade with the United

States but continued fears about a global growth slowdown, or

even a recession, capped sharp rallies.

Investors were focused on a string of economic releases due

over the weekend including China's official manufacturing survey

which would provide a good gauge of the real impact from the

Sino-U.S. trade war.

MSCI's broadest index of Asia-Pacific shares outside Japan

.MIAPJ0000PUS climbed 0.4% but stayed near a recent 7-1/2

month trough. For the week, it is set for a small weekly loss.

Japan's Nikkei .N225 jumped 1% while South Korea's KOSPI

index .KS11 gained 1.3% and Australian shares .AXJO rose

0.7%.

Overnight, Wall Street added more than 1% after China's

commerce ministry said Beijing and Washington were discussing

the next round of face-to-face talks scheduled for September.

The comments spurred hopes for progress in the talks and

boosted the Chinese yuan, which snapped a 10-day losing streak.

Stock analysts were more circumspect though.

"It's really hard to say the U.S.-China trade backdrop

changed dramatically in the last 12 hours – the Sept 1 tariffs

are still going into effect and there are further hikes on the

calendar," JPMorgan (NYSE:JPM) analysts wrote to clients in a note.

U.S. President Donald Trump said some discussions were

taking place on Thursday, with more talks scheduled.

China's commerce ministry also said a September round of

meetings was being discussed by the two sides, but added it was

important for Washington to cancel a tariff increase.

"In reality, the headlines are extremely innocuous and don't

differ from what China has said in the past but they crossed

during a dead zone of liquidity and attendance and as a result

are having an outsized influence on trading," JPMorgan said.

Trade tensions have dominated market sentiment for much of

this year with wild swings in world stocks as rhetoric between

the United States and China fluctuates from conciliatory to

combative.

Last week, China unveiled tit-for-tat tariffs on $75 billion

of U.S. goods. In response, U.S. President Donald Trump said he

would tack an additional 5% duty onto $550 billion of Chinese

goods.

The volatile nature of the negotiations have kept many

analysts cautious.

"The recent escalation of the tariff war provides no hopes

of a near-term trade deal," ING's Asia economist Prakash Sakpal

wrote.

"As such, we are in for a long stretch of slow growth and

increasingly challenging policy environment, as some central

bankers have warned."

Even so, U.S. Treasury yields rose overnight with the

benchmark 10-year Treasury US10YT=RR climbing to 1.535% from a

three-year low of 1.443% touched earlier this week.

Among currencies, the dollar .DXY was a tad weaker at

98.422 against a basket of six major currencies. It was unmoved

against the Japanese yen at 106.49 after gains overnight while

the euro EUR= was flat too at $1.1053.

Sterling GBP= held at $1.218 ahead of a crucial few days

for parliament next week which could even result in a

no-confidence motion and a new election.

In commodities, spot gold XAU= came off recent highs to

trade at $1,523.4 an ounce. Silver also to $18.23 an ounce after

hitting its highest level in more than two years. U.S. crude CLc1 slipped 16 cents, or 0.3%, to $56.55 a

barrel.

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

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

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

(Editing by Sam Holmes)

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.