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GLOBAL MARKETS-Asia shares left guessing on trade, await Trump speech

Published 12/11/2019, 03:53
Updated 12/11/2019, 03:54
© Reuters.  GLOBAL MARKETS-Asia shares left guessing on trade, await Trump speech
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* Asian stock markets : https://tmsnrt.rs/2zpUAr4

* Shares mark time in Asia, bonds bounce a little

* Awaiting Trump speech in New York for news on trade

* Reports Trump to delay auto tariffs on EU for 6 months

* Sterling holds gains after Boris gets a Brexit boost

By Wayne Cole

SYDNEY, Nov 12 (Reuters) - Asian share markets flatlined on

Tuesday as uncertainty over Sino-U.S. trade talks and political

strife in Hong Kong dogged sentiment, while safe-haven bonds

eked out a bounce.

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

.MIAPJ0000PUS edged up a slight 0.04%, following a sharp 1.2%

pullback on Monday.

Japan's Nikkei .N225 dithered either side of flat, while

Shanghai blue chips .CSI300 eased 0.1%. E-Mini futures for the

S&P 500 ESc1 also dipped 0.1%, as did EUROSTOXX 50 futures

STXEc1 .

Caution ruled ahead of a speech by U.S. President Donald

Trump to the Economic Club of New York later in the day in case

there was any new word on the Sino-U.S. Phase one trade deal.

Trump wrongfooted markets over the weekend when he said

there had been incorrect reporting about U.S. willingness to

lift tariffs on China.

On a more positive note, Politico reported Trump would

announce this week that he is delaying a decision on whether to

slap tariffs on imported European Union autos for another six

months. Investors were anxious about the situation in Hong Kong

after a violent escalation of protests knocked nearly 2% off

Asia-exposed banks HSBC HSBA.L and StanChart STAN.L .

Riot police were deployed at metro stations across the

territory and large queues were forming at railway platforms as

commuters struggled to get to work. A partial holiday in the United States closed the Treasury

market on Monday and made for a quiet session on Wall Street.

The Dow .DJI ended up 0.04%, while the S&P 500 .SPX lost

0.20% and the Nasdaq .IXIC 0.13%.

Shares of Boeing Co BA.N jumped 4.5% after saying it

expected U.S. regulators to approve the return to commercial

service of its grounded 737 MAX jet in the coming weeks, and

expects commercial service to resume in January. Treasuries were in demand when trading resumed in Asia, with

yields on 10-year notes US10YT=RR dropping to 1.918% and away

from last week's three-month top of 1.97%.

In currency markets, the main action was in sterling which

hit a six-month high on the euro after the Brexit Party said it

would not contest previously Conservative held seats in the UK

election. In a significant boost for Prime Minister Boris Johnson

ahead of the Dec. 12 election, Brexit Party leader Nigel Farage

said he did not want anti-Brexit parties to win, so was standing

down candidates in seats won by the Conservatives in 2017.

The pound reached 0.8582 per euro EURGBP= , and firmed to

$1.2856 GBP= having risen 0.6% overnight.

Against a basket of currencies, the dollar steadied at

98.256 .DXY . The euro edged up to $1.1030 EUR= and away from

a three-week low of $1.1015, while the dollar faded to 109.10

yen JPY= .

Spot gold suffered a third day of declines, to touch its

lowest since early August at $1,447.89 per ounce XAU= . It was

last trading at $1,455.62.

Oil prices edged lower as the lack of progress on U.S.-China

trade negotiations kept prices pressured, though bullish

inventory data offered some support. O/R

U.S. crude CLc1 lost 15 cents to $56.71 a barrel, while

Brent crude LCOc1 futures fell 13 cents to $62.05.

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

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

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(Editing by Sam Holmes & Shri Navaratnam)

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