(Updates prices throughout)
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Australian shares rise 0.5%, NZ shares up 0.2%
* E-Mini futures for S&P 500 up 0.5%
* Risk-sensitive Aussie firms, dollar up on yen
* Oil gains after sell-off on Friday, gold nudges lower
By Swati Pandey
SYDNEY, Sept 23 (Reuters) - Asian shares started higher on
Monday on hopes of an interim Sino-U.S. tariff deal after the
two countries described their talks as "productive" and
"constructive", while oil gained more than 1% as Middle East
tensions remained elevated.
Australian shares .AXJO added 0.4% while New Zealand's
benchmark index .NZ50 was 0.2% higher. South Korea's Kospi
.KS11 was a touch weaker after disappointing trade data, while
Japan's Nikkei .N225 was closed for a holiday. That left MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS up 0.5% at 511.28 points. It is up
3.4% so far in September.
The E-mini futures for U.S. S&P 500 ESc1 climbed 0.5%
while Dow minis 1YMc1 were up 0.46%.
The gains come after the U.S. Trade Representative's office
issued a brief statement characterising the two days of talks
with China as "productive." It added that a principal-level
trade meeting in Washington would take place in October, as
previously planned. China's Commerce Ministry, in a brief statement, described
the talks as "constructive", and said they had also had a good
discussion on "detailed arrangements" for the high-level talks
in October.
Additionally, the United States removed tariffs from more
than 400 Chinese products in response to requests from U.S.
companies.
"The two nations have continued to hold constructive talks.
That's helped the sentiment but the markets still remain
unconvinced," said Rodrigo Catril, senior forex strategist at
National Australia Bank in Sydney.
Investors were still a bit jittery as news broke on Friday
that Chinese officials unexpectedly cancelled a visit to U.S.
farms next week following their two days of negotiations in
Washington. That led to losses in Wall Street on Friday with the Dow
closing 0.6% lower, the S&P500 .SPX 0.5% down and Nasdaq
.IXIC off 0.8%.
"Trade tensions are likely to wax and wane ahead of
U.S.-China October negotiations," Citi analyst Cesar Rojas said
in a note.
"Despite recent signs of a moderation in the pace of trade
tensions escalation ahead of the October face-to-face
negotiations, we continue expect U.S.-China trade tensions to
continue."
Later in the day, September manufacturing activity surveys
are due from the United States and European Union which will be
closely watched for any signs of a rebound.
Action in currency markets was muted.
The dollar gained 0.1% against the safe haven Japanese yen
to 107.74 JPY= after easing 0.5% last week. The risk-sensitive
Australian dollar AUD=D3 was up 0.15% at $0.6773.
The euro EUR=D3 was mostly flat as was the British pound
GBP= . That left the dollar index .DXY unchanged at 98.494.
In commodities, Brent crude LCOc1 futures jumped 1.12%, or
72 cents, to $65 a barrel, while U.S. crude CLc1 futures
escalated 1.19%, or 69 cents, to $58.78 a barrel. O/R
The Pentagon has ordered additional troops to be deployed in
the Gulf region to strengthen Saudi Arabia's air and missile
defences following an attack on Saudi oil facilities.
U.S. Secretary of State Mike Pompeo said on Sunday the
additional troops are for "deterrence and defence" and
Washington aimed to avoid war with Iran.
With markets calmer since the Sept. 14 attacks on Saudi
Arabian refineries, gold pulled back slightly. GOL/
Spot gold XAU= was off 0.25% at $1,512.8 an ounce.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
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(Editing by Jacqueline Wong and Lincoln Feast)