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GLOBAL MARKETS-Asia stocks frustrated as trade doubts resurface

Published 07/11/2019, 06:50
Updated 07/11/2019, 06:55
© Reuters.  GLOBAL MARKETS-Asia stocks frustrated as trade doubts resurface
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* Asian stock markets : https://tmsnrt.rs/2zpUAr4

* Nikkei idles near 13-mth high, most markets flat

* Reuters reports phase 1 trade deal delayed to Dec

* Bonds bounce, dollar cedes some gains to yen

By Wayne Cole

SYDNEY, Nov 7 (Reuters) - Asian shares napped near

multi-month peaks on Thursday while bonds eked out a bounce as

reports of delays in sealing a preliminary Sino-U.S. trade deal

left investors frustrated at the lack of concrete progress.

In early European trades, the pan-region Euro Stoxx 50

futures STXEc1 were up slightly while those for German DAX

FDXc1 were flat. London's FTSE futures FFIc1 rose 0.2%.

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

.MIAPJ0000PUS dipped a slight 0.2%, just off a six-month high

hit earlier in the week.

Japan's Nikkei .N225 dithered either side of flat in very

quiet trade, having touched a 13-month top on Wednesday. South

Korean stocks .KS11 eased 0.15% after hitting their highest

since May, while Shanghai blue chips .CSI300 lost 0.08%.

E-Mini futures for the S&P 500 ESc1 eased 0.1%.

Reuters reported on Wednesday a meeting between U.S.

President Donald Trump and Chinese President Xi Jinping to sign

an interim trade deal could be delayed until December as

discussions continue over terms and venue. Among various suggestions was to sign a deal after a

scheduled NATO meeting in early December. "One could take the view that by not committing to meet the

original deadline it gives more time for a somewhat more

comprehensive agreement to be thrashed out," said Ray Attrill,

head of FX strategy at National Australia Bank.

"But markets have understandably jumped the other way,

exhibiting a slight loss of confidence that anything more

substantial than an agreement not to further lift tariffs, in

return for some increase in US agricultural purchases, can be

agreed by way of an initial deal."

Wall Street was underwhelmed by the news and the Dow .DJI

ended Wednesday all but flat, while the S&P 500 .SPX gained

0.07% and the Nasdaq .IXIC dropped 0.29%.

HP Inc HPQ.N rose over 6% after Reuters reported U.S.

printer maker Xerox Holdings Corp XRX.N has made a roughly $33

billion cash-and-stock offer for the computer group. The pause in the risk rally helped bonds recoup a little of

their recent losses. Yields on benchmark U.S. 10-year notes

US10YT=RR fell back to 1.81% from a two-month top of 1.87%.

That in turn restrained the dollar, which eased to 108.74

yen JPY= from a weekly high of 109.24. The dollar was steady

on a basket of currencies at 97.965 .DXY .

The euro was struggling to sustain any bounce at $1.1061

EUR= , perilously close to chart support at $1.1060.

Spot gold was little changed at $1,490.38 per ounce XAU=

and well within recent tight trading ranges.

Oil prices nursed losses after taking a hit from a

surprisingly large build in U.S. crude inventories. O/R

U.S. crude CLc1 was 6 cents lower at $56.29 a barrel,

while Brent crude LCOc1 slipped 7 cents to $61.67.

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

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

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