GLOBAL MARKETS-Asian shares gain as trade deal hopes flicker among Trump's mixed signals

Published 05/12/2019, 05:22
Updated 05/12/2019, 05:27
© Reuters.  GLOBAL MARKETS-Asian shares gain as trade deal hopes flicker among Trump's mixed signals

* Stocks in Asia move a notch higher on hopes of U.S.-China

* But investors remain on edge amid mixed messages from

Trump

* Oil eases slightly before OPEC meeting

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Stanley White and Noah Sin

TOKYO/HONG KONG, Dec 5 (Reuters) - Stock markets in Asia

gained on Thursday on hopes that China and the United States may

soon seal a preliminary deal to end their 17-month trade war,

but conflicting signals from U.S. President Donald Trump kept a

lid on investor optimism.

Hopes that an agreement would soon emerge stemmed from a

Bloomberg report on Wednesday that the two sides were close to a

"phase one" deal, and U.S. President Donald Trump's remarks that

the talks were going "very well" after he had earlier said it

might take until late 2020 to reach and accord.

"My base case scenario is the two sides reach some deal. The

pressure for a deal is immense simply because of the economic

slowdown in both countries," said Shane Oliver, head of

investment strategy and chief economist at AMP Capital Investors

in Sydney.

"However, we see increased volatility because policy

uncertainty has become a constant."

As investors tilted towards optimism riskier assets rose and

safe havens like the Japanese yen weakened.

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

.MIAPJ0000PUS gained 0.4%. Japan's Nikkei stock index .N225

gained 0.7%, Australian shares .AXJO were up 1%, and in China,

both blue chips .CSI300 and Hong Kong's Hang Seng index .HSI

rose 0.3%.

U.S. stock futures ESc1 fell 0.04% on Thursday in Asia

after the S&P 500 .SPX gained 0.63% on Wednesday.

Analysts warn that more market turbulence is possible given

Sino-U.S. negotiations are very fluid.

If China and the United States cannot reach an agreement

soon, the next important date to watch is Dec. 15, when

Washington is scheduled to impose even more tariffs on Chinese

goods.

Traders are also bracing for the closely-watched U.S.

non-farm payrolls report due Friday to determine how well the

U.S. economy is holding up amid a global slowdown.

Trading will likely be thin and there will be little money

chasing these unpredictable trade headlines as the year-end

approaches, said Robert Carnell, chief economist and head of

research for Asia-Pacific at ING in Singapore.

"The motivation now (for investors) is not to lose any money

if you're under water, and if you've made money, keep it that

way," he said. "If you haven't positioned yet you are not going

to in the next couple of weeks."

The yen JPY= traded flat 108.85 per dollar, ceding some of

the previous day's gains as positive signs about the trade

dispute hurt demand for safe-haven currencies.

The yield on benchmark 10-year Treasury notes US10YT=RR

fell slightly to 1.7603% in Asia, retracing some of the gains

made in the previous session.

U.S. crude CLc1 edged 0.22% lower to $58.21 a barrel on

Thursday as a 3% rally overnight showed signs of fading.

However, prices could be supported if the Organization of

the Petroleum Exporting Countries, and fellow producers

including Russia, approve deeper crude output cuts when they

meet in Vienna on Thursday and Friday.

(Editing by Simon Cameron-Moore)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.