GLOBAL MARKETS-Global shares steady, investors pin hopes on U.S.-China talks

Published 01/10/2019, 01:58
Updated 01/10/2019, 02:00
© Reuters.  GLOBAL MARKETS-Global shares steady, investors pin hopes on U.S.-China talks

* Nikkei up 0.6%, ex-Japan Asia up 0.05%, China shut

* U.S.-listed Chinese shares bounce after Friday's fall

* Euro near 2 1/2-year low

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

By Hideyuki Sano

TOKYO, Oct 1 (Reuters) - Global share prices ticked up on

Tuesday as some investors clung to hopes that China and the

United States could work towards reaching a deal on trade and

other issues in the fourth quarter.

Japan's Nikkei .N225 rose 0.6% while MSCI's broadest index

of Asia-Pacific shares outside Japan .MIAPJ0000PUS inched up

0.11%.

Chinese markets will be shut for a week from Tuesday to mark

70 years since the founding of the People's Republic of China.

U.S. stock futures ESc1 rose 0.16% in Asia, a day after

the S&P 500 .SPX gained 0.50%.

Technology sectors led the gains on Monday while U.S.-listed

shares of Chinese firms bounced up a tad, after big balls on

Friday, with Alibaba BABA.N up 0.75% and Baidu BIDU.O

gaining 1.53%.

During the July-September quarter, the S&P500 gained 1.21%.

In Europe, the benchmark stock index .STOXX gained 2.15%

in the quarter to end at 16-month high, thanks in part to a weak

euro.

White House trade adviser Peter Navarro dismissed reports

that the Trump administration was considering delisting Chinese

companies from U.S. stock exchanges as "fake news," giving

short-term players an excuse to buy back risk assets.

"Whether it was a fake news or not, it is becoming harder to

know exactly what the U.S. administration will be doing," said

Takashi Hiroki, chief strategist at Monex Securities.

"It's not clear how the U.S.-China talks will progress,

given there are hard-liners against China in the administration.

But if there's no further escalation in the upcoming meeting,

markets will be relieved," he added.

China and the United States are due to resume high-level

trade talks next week in Washington.

While the tussle over trade and technology between the

world's two largest economies has intensified, some investors

are sticking to hopes of a compromise.

A tentative deal could be reached by the end of this year

considering the President Donald Trump's administration would

strive to avoid the U.S. economy falling into a recession in an

election year, they say.

"While we ought not to have preconception, for Trump, not

having made a deal with China could be increasingly seen as

negative ahead of the election next year," said Tomoo Kinoshita,

chief global strategist at Invesco Asset Management in Tokyo.

In the currency market, the euro extended its decline on

worries about sluggish growth in the currency bloc.

The euro traded at $1.0897 EUR= , having slipped to a near

2 1/2-year low of $1.0885 in U.S. trade on Monday.

The yen was barely changed at 108.08 yen to the dollar

JPY= , not far from last month's low of 108.48.

The Japanese currency showed no reaction to the Bank of

Japan's tankan survey showing business confidence at big

Japanese manufacturers worsened in the three months to September

to its lowest level in six years. The Australian dollar fetched $0.6755 AUD=D4 , near

three-week low of $0.6739 touched last month ahead of a likely

rate cut by the Reserve Bank of Australia later in the day.

A majority of 35 economists polled by Reuters expect the RBA

to cut the cash rate for the third time this year.

Oil prices were under pressure, wiping out all of their

gains after attacks on Saudi Arabian oil facilities last month,

on fading concerns of supply shortfalls and conflicts in the

Middle East.

U.S. West Texas Intermediate (WTI) crude CLc1 fell 3.3% on

Monday before rise 0.39% early on Tuesday to $54.28 per barrel.

(Editing by Richard Borsuk)

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