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GLOBAL MARKETS-Asia stocks in dark on trade, seek enlightenment from Trump

Published 12/11/2019, 08:03
Updated 12/11/2019, 08:09
© Reuters.  GLOBAL MARKETS-Asia stocks in dark on trade, seek enlightenment from Trump
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* Asian stock markets : https://tmsnrt.rs/2zpUAr4

* Shares bounce, Japan's Nikkei end 0.8% higher

* 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 and Swati Pandey

SYDNEY, Nov 12 (Reuters) - Asian share markets edged higher

on Tuesday and Europe looked set to follow as investors awaited

a speech by President Donald Trump on U.S. trade policy and on

news he will likely delay a decision on whether to slap tariffs

on European autos.

EU officials said Trump was expected to announce this week

that he was delaying the tariff decision on cars and auto parts

imported from the European Union likely for another six months.

The news boosted expectations about Trump's speech later in

the day about his administration's long-running trade war with

China.

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

.MIAPJ0000PUS climbed 0.5%, following a sharp 1.2% pullback on

Monday.

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

most of the day, ended 0.8% higher. But Shanghai blue chips

.CSI300 eased 0.2% after bank lending growth undershot

analysts' estimates, while Australian shares were down, too.

E-Mini futures for the S&P 500 ESc1 rose 0.2%, while

EUROSTOXX 50 futures STXEc1 gained 0.4%.

A positive speech on U.S.-China trade would likely satisfy

market participants even without specific details of the "Phase

1" agreement under negotiation, said Jim Paulsen, chief

investment officer at The Leuthold Group in Minneapolis.

"It still feels like we're pretty close to having something

done," Paulsen said on Monday. "Even if it's meaningless, it

will be meaningful."

Trump wrongfooted markets over the weekend when he said

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

lift tariffs on China.

Investors also 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 .

Hong Kong's embattled leader Carrie Lam on Tuesday said

protesters who are trying to "paralyse" the city were extremely

selfish and hoped all universities and schools would urge

students not to participate in violence.

Lam was speaking a day after police shot a protester and a

man was set on fire in some of the most dramatic scenes to grip

the city during the more than five months of civil unrest.

GETS BREXIT BOOST

A partial holiday in the United States had 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%.

Treasuries were in demand when trading resumed in Asia, with

yields on 10-year notes US10YT=RR dropping to 1.9070% and away

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

1.9539.

In currency markets, the main action was in sterling which

hit a six-month high on the euro on Monday after the Brexit

Party said it would not contest previously Conservative held

seats in the UK election. In a 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

98.224 .DXY . The euro edged up to $1.1038 EUR= and away from

a three-week low of $1.1015, while the dollar faded to 109.26

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 $1,450.44.

U.S. crude CLc1 gained 28 cents to $57.14 a barrel, while

Brent crude LCOc1 futures added 35 cents to $62.53.

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

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

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(Editing by Sam Holmes, Shri Navaratnam & Kim Coghill)

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