Gold bars to be exempt from tariffs, White House clarifies
* MSCI Asia ex-Japan +0.19%, Nikkei +0.55%
* Global stock index inches up to new record highs
* China 2019 GDP data due at 0200 GMT
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Andrew Galbraith
SHANGHAI, Jan 17 (Reuters) - Asian shares inched higher on
Friday after global stock indexes and Wall Street posted more
records, with strong corporate earnings and upbeat U.S. economic
data adding to optimism after China and the U.S. signed a
partial trade deal.
But investors will be closely watching key Chinese economic
data for clues on whether a marked slowdown in the world's
second-largest economy is starting to bottom out.
China is expected to post its weakest annual growth rate in
29 years -- 6.1% -- due to anaemic domestic demand and the
damaging trade war with the United States.
Data in the last few months have pointed to an improvement
in Chinese manufacturing and business confidence as trade
tensions eased, but analysts are not sure if the gains can be
sustained and Beijing is widely expected to roll out more
stimulus measures.
Fourth-quarter and 2019 gross domestic product (GDP) data
and December factory output, retail sales and fixed-asset
investment numbers are due at 0200 GMT. In early trade before Chinese markets opened, MSCI's
broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was up 0.19%, taking gains for the month to
3.4%.
Australian shares .AXJO were up 0.49% after setting four
consecutive record closing highs in previous days. Japan's
Nikkei .N225 added 0.55%.
MSCI's global share index .MIWD00000PUS inched up 0.05%,
just off new record highs set earlier in the session.
But analysts say global equities may find it difficult to
maintain momentum from their recent rally as optimism over the
U.S-China trade truce gives way to uncertainty over the next
steps in trade talks.
While the Phase 1 deal is seen as defusing the 18-month row
that has hit global growth, experts say it is unlikely to
provide much balm for broader frictions between the two
countries. Most of the tariffs imposed during the dispute remain
in place and a number of thorny issues that sparked the conflict
are still unresolved. "The challenge from here is how long we can maintain these
improvements," said Steven Daghlian, market analyst at CommSec
in Sydney.
"Speaking of the Aussie market specifically, a 6% gain in
two weeks is obviously a massive challenge to replicate in the
tail end of the month. You don't really see 10, 11, 12%
improvements over the course of a month without any gigantic
positive catalysts."
In the U.S. on Thursday, a combination of upbeat earnings
from Morgan Stanley, rising U.S. retail sales, a strong labour
market and robust manufacturing data helped to lift Wall Street
to record highs. .N
The Dow Jones Industrial Average .DJI rose 0.92% to
29,297.64, the S&P 500 .SPX gained 0.84% to 3,316.81 and the
Nasdaq Composite .IXIC added 1.06% to 9,357.13.
The U.S. data also supported the dollar, which held steady
on Friday. The greenback was up 0.05% against the yen at 110.19.
JPY= while the euro inched 0.02% higher to buy $1.1137.
The dollar index .DXY , which tracks the greenback against
a basket of six major rivals, was flat at 97.320.
The rally in equities was mirrored in U.S. benchmark 10-year
Treasury notes, which saw yields tick up to 1.8214% from their
close on Thursday at 1.809%. Yields rise as prices fall.
U.S. West Texas Intermediate crude futures CLc1 were 0.17%
higher at $58.62 per barrel, while gold shed 0.07% to $1,551.50
per ounce on the spot market. XAU= /GOL