GLOBAL MARKETS-Asian shares give up gains as HK chaos hits sentiment

Published 11/11/2019, 03:11
Updated 11/11/2019, 03:18
© Reuters.  GLOBAL MARKETS-Asian shares give up gains as HK chaos hits sentiment

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

* Asian shares inch up, Nikkei starts on a firm note

* Focus on U.S.-China trade talks

* Gold near three-month lows

By Swati Pandey

SYDNEY, Nov 11 (Reuters) - Asian shares reversed gains on

Monday, the yen ticked higher and gold jumped as fresh violence

broke out in Hong Kong, while uncertainty still remained over

whether the United States and China could end their damaging

trade war.

Hong Kong's Hang Seng index .HSI led the losses in Asia,

down more than 1%, after police fired live rounds at protestors

on the eastern side of Hong Kong island. Cable TV and other Hong

Kong media reported at least one protester being wounded. Video

footage showed a protester lying in a pool of blood.

Chinese shares too started lower with the blue-chip CSI300

index .CSI300 down 0.6%. South Korea's KOSPI .KS11 lost 0.7%

Japan's Nikkei .N225 gave up early gains to drift away

from a recent 13-month high after data showed the country's core

machinery orders fell for a third straight month. Australian shares .AXJO bucked the downbeat trend, rising

0.5% to a two-week high.

That left MSCI's broadest index of Asia-Pacific shares

outside Japan .MIAPJ0000PUS down 0.5%.

"The China-U.S. trade war and the Hong Kong protest are

combining to cast a negative pall on Asian markets today," said

James McGlew, analyst at stockbroking firm Argonaut.

"Hong Kong protests have been dragging on for a while and

the view from the financial world is that it's really starting

to bite now. The further this drags on it's certainly going to

be very negative."

Gold, which rises during times of uncertainty, rebounded

from a three-month low touched on Friday to be last up 0.4% at

$1,463.5 an ounce. XAU=

In currencies, the Japanese yen gained on the dollar to

109.11 while the Australian dollar, a liquid gauge for risk, was

off slightly at $0.6855.

The dollar index =USD was mostly flat at 98.353 as was the

euro at $1.102.

Market attention was also on the U.S.-China trade talks.

U.S. President Donald Trump told reporters on Saturday that

talks with China had moved more slowly than he would have liked,

but added that Beijing wanted a deal more than he did.

That was a more upbeat tone than just a few days earlier

when he had stressed that the White House would not agree to a

full rollback of existing tariffs, remarks that hit stock prices

and the dollar.

"Despite his bluster that 'China wants a trade deal more

than I do', markets sense that Trump is likely quite keen to

call a truce on what is becoming a serious U.S. economic risk

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