(Corrects to remove references to DAX and Euro STOXX 50
futures, which are not trading)
* MSCI Asia ex-Japan -0.45%, up nearly 16% on year
* European shares tipped to fall at open
* U.S., China expected to sign deal soon - White House
officials
* China Dec manufacturing activity better than expected
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Andrew Galbraith
SHANGHAI, Dec 31 (Reuters) - Asian shares were mostly lower
on Tuesday, in their last trading day of the decade as investors
locked in profits after a buoyant year of gains, driven in
recent weeks by hopes of an imminent U.S.-China trade deal.
European equity markets were expected to follow suit after
losses on Wall Street Monday. FTSE futures FFIc1 were down
0.37% at 7,508.
But U.S. stock futures showed some optimism ahead of Wall
Street's final session of the year, with S&P 500 e-minis ESc1
up 0.12% at 3,227.3.
At about 0620 GMT, MSCI's broadest index of Asia-Pacific
shares outside Japan .MIAPJ0000PUS was 0.46% lower, set for
its weakest performance since Dec. 4. For the month, the index
is still up 5.6%.
The index has gained nearly 16% this year, a sharp
turnaround from a 16.2% drop last year but lagging a 23.8%
year-to-date gain in MSCI's global share index .MIWD00000PUS .
The Asian index gained 33.5% in 2017, about the same as its
total rise over the previous decade.
Australian shares .AXJO ended their best year since 2009
1.78% lower, and Hong Kong's Hang Seng .HSI finished down
0.46% in a half-day session.
"We are seeing some profit-taking into year-end," said Ryan
Felsman, senior economist at CommSec in Sydney, adding that
progress on resolving the 17-month-long U.S.-China trade war
remained a positive factor for investors into the new year.
The White House's trade adviser on Monday said the
U.S.-China Phase 1 trade deal would likely be signed in the next
week, but said confirmation would come from President Donald
Trump or the U.S. Trade Representative. "We think that the global growth situation is improving,
we're seeing better industrial profits in China ... green shoots
in the manufacturing sector on the back of an improvement in the
trade situation is a key catalyst going forward," he said.
While easing trade concerns and lifting uncertainty around
Britain's exit from the European Union have helped reduce some
near-term market uncertainty, investors remain worried about a
recession, seen as inevitable in the new decade. Positive Chinese manufacturing data, which showed factory
activity expanding for a second straight month in December,
nudged China's blue-chip CSI300 index .CSI300 0.3% higher,
extending the more-than-33% gain seen this year.
China's gains built on Monday's rally, which was driven by a
combination of strong retail sales growth and hopes that a new
benchmark for floating-rate loans could lower borrowing costs.
Markets in Japan and South Korea were closed for a holiday.
The falls in Asia came after profit taking pushed the Dow
Jones Industrial Average .DJI down 0.64% to 28,462.14, the S&P
500 .SPX 0.58% lower to 3,221.29 and the Nasdaq Composite
.IXIC off 0.67% to 8,945.99.
U.S. Treasury futures inched lower TYc1 , reflecting an
implied yield of 1.81%. That followed a rise in benchmark U.S.
Treasury yields on Monday that pushed the U.S. two-year, 10-year
yield curve to its steepest in 14 months. The dollar continued to weaken against the yen for a third
straight session, dropping 0.20% to 108.65 JPY= and hitting
its lowest level since Dec. 12. The euro strengthened EUR=
0.06% to buy $1.1204.
The dollar index .DXY , which tracks the greenback against
a basket of six major rivals, was 0.05% lower at 96.692.
U.S. crude CLc1 dipped 0.13% to $61.60 a barrel and Brent
crude LCOc1 edged down to $66.65 per barrel. The global
benchmark remains up 23.8% for the year.
Gold continued its rally on a weakening dollar. On the spot
market, the precious metal XAU= was changing hands at
$1,523.14 per ounce, up 0.53%. Gold prices have risen 18.7% so
far this year. GOL/
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Asian shares over the past decade https://tmsnrt.rs/2tdGbh8
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>