Japan PPI inflation slips to 11-mth low in July
* Markets on edge, await signs of breakthrough on trade
* Chinese stocks rise; Japan, South Korea fall
* Currencies also becalmed, awaiting concrete news
By Tom Westbrook
SINGAPORE, Nov 19 (Reuters) - Asian share markets were mixed
on Tuesday, as another day awaiting clearer news on the progress
of U.S.-China trade negotiations left investors bereft of
trading motivation.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS inched 0.2% higher as hopes for stimulus in
China lifted Shanghai blue chips by 0.8% and Hong Kong's Hang
Seng by 1%.
Japan's Nikkei .N225 , however, shed 0.2% and South Korea's
Kospi 200 dropped 0.3%. Australia's S&P/ASX 200 .AXJO rose
0.4%.
Volumes were light across the board. E-Mini futures for the
S&P 500 ESc1 were flat.
"It's subdued today for sure," said Vishnu Varathan, head of
economics and strategy at Mizuho Bank's Asia Treasury Department
in Singapore, adding that focus was by default on efforts to
resolve the trade war between the world's two biggest economies
that has dented global growth.
"There are some lingering doubts over whether a phase one
deal can be struck ... I think the suspicion is that there's a
lot more wrinkles to iron out than initially thought."
Overnight, CNBC had reported the mood in Beijing was
pessimistic about the prospects of sealing an agreement.
On the other hand, a new extension allowing U.S. companies
to keep doing business with Chinese telecoms giant Huawei
suggested something of an olive branch.
Still, neither morsel shed much light on progress in
U.s.-China negotiations, and this week's listless trading
suggests optimism that resolution is near is beginning to run
out of steam.
"We're still waiting," said Michael McCarthy, chief market
strategist at brokerage CMC Markets in Sydney. "The longer we go
on, the more concerns will arise. The reality is the clock is
ticking."
The next deadline in the dispute is Dec. 15, when another
round of U.S. tariffs on Chinese good is scheduled to take
effect.
Wall Street's main indexes traded mostly flat on Monday,
looking for direction on trade, though they ended the day
inching higher to record closing levels.
The Dow Jones Industrial Average .DJI rose 0.1%. The S&P
500 .SPX gained 0.05%, and the Nasdaq Composite . IXIC added
0.1%.
The yield on benchmark 10-year Treasury notes US10YT=RR
rose to 1.8118% compared with its U.S. close of 1.808% on
Monday.
WAITING GAME
Currency markets were similarly indecisive and range-bound.
The safe-haven Japanese yen JPY= climbed as high as 108.45 per
dollar before retreating to trade flat at 108.64.
The Australian dollar AUD= nudged 0.2% lower to $0.6793
after the central bank said it had seen a case for cutting rates
this month.
The biggest mover overnight was the British pound GBP=
which headed towards $1.30 as four polls showed Prime Minister
Boris Johnson's Conservative Party tracking toward victory at
the Dec. 12 election.
Sterling hit a one-month high of $1.2984 overnight, before
retreating a little in Asian trade to settle around $1.2953.
"Overall, risk-related plays will continue to be whipsawed
by alternating headlines, but in the short term, risk-off plays
may still have room to run as uncertainties persist," said
Terence Wu, a strategist at OCBC bank in Singapore.
Spot gold XAU= , which has been closely tracking the
fortunes of the Sino-U.S. trade dispute, was flat at $1,470.03
per ounce.
U.S. crude CLc1 dropped 0.18% to $56.95 a barrel. Brent
crude LCOc1 fell to $62.34 per barrel.
GRAPHIC: Asia stock markets https://tmsnrt.rs/2zpUAr4
GRAPHIC: Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
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