NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

GLOBAL MARKETS-Stocks cheer warming trade talks, Alibaba's strong HK debut

Published 26/11/2019, 07:05
© Reuters.  GLOBAL MARKETS-Stocks cheer warming trade talks, Alibaba's strong HK debut
AXJO
-
JP225
-
HK50
-
LVMH
-
DE30
-
LCO
-
UK100
-
ESZ24
-
CL
-
EU50
-
AMTD
-
MIAPJ0000PUS
-
9988
-

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

* Share edge higher in risk-on mood

* Yen and Swiss franc on back foot in Asia

* Oil prices reverse losses on trade outlook

* Alibaba up on HK IPO debut, fails to lift broad market

By Stanley White

TOKYO, Nov 26 (Reuters) - Asian stocks rose on Tuesday,

bolstered by new momentum in Sino-U.S. efforts to end their

acrimonious trade dispute and as Chinese e-commerce giant

Alibaba made a strong Hong Kong debut in the world's largest

share sale this year.

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

.MIAPJ0000PUS rose 0.4% to a one-week high. Australian shares

.AXJO were up 0.83%, while Japan's Nikkei stock index .N225

rose 0.54%.

Shares in the region extended earlier gains after Beijing

said Liu He, China's Vice premier and chief trade negotiator,

held a phone call with his U.S. counterparts and that both sides

reached consensus on how to move forward in their

dispute. That followed positive headlines out of China and the United

States on Monday, which had helped bolster confidence.

The yen fell to a two-week low versus the dollar, while the

Swiss franc traded near a six-week low against the greenback as

the optimistic tone sapped demand for safe-haven currencies.

"The broad trend is the markets are looking for a deal

because trade has been the biggest factor weighing on global

growth and holding back confidence," said Shane Oliver, head of

investment strategy and chief economist at AMP Capital Investors

in Sydney.

"We have a low interest rate environment that is supportive

of equities. If we get better economic news and relief from

geopolitical risks, equities could rally further next year."

U.S. stock futures ESc1 edged 0.08% higher in Asia on

Tuesday after Wall Street's three main stock averages closed at

record highs on Monday, buoyed by hopes for a trade deal and by

M&A activity.

The pan-region Euro Stoxx 50 futures STXEc1 were up 0.03%,

German DAX futures FDXc1 were up 0.12%, while FTSE futures

FFIc1 were up 0.14% on Tuesday.

Traders pointed to China's decision to increase punishments

for intellectual property rights violations as a fresh

concession to the United States in the drawn-out and volatile

negotiations. Investors were also encouraged by positive comments from

U.S. President Donald Trump, Chinese President Xi Jinping and

Chinese state-owned media about the chance for an imminent trade

deal. Also driving Wall Street higher was a burst of major

acquisition activity with France's LVMH LVMH.PA offer to buy

U.S. jeweller Tiffany & Co TIF.N and Charles Schwab Corp's

SCHW.N purchase of U.S. discount brokerage TD Ameritrade

Holding Corp AMTD.O . In Hong Kong, shares of Alibaba 9988.HK BABA.N opened

6.9% higher than their issue price and at a small premium to

pricing in New York. However, the Hang Seng index .HSI fell

0.14%.

The Chinese firm has raised at least $11.3 billion from the

secondary listing, which has been seen as a vote of confidence

in Hong Kong after months of anti-government protests rocked the

former British colony. The United States has imposed tariffs on Chinese goods in a

16-month long dispute over trade practices that the U.S.

government says are unfair. China has responded in kind with its

own tariffs on U.S. goods.

If both sides 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.

In the offshore market, the yuan CNH=D3 briefly rose to a

one-week high of 7.0188 versus the dollar.

The yen JPY=EBS fell to 109.205 per dollar, the lowest

since Nov. 12, as safe-haven demand waned.

The Swiss franc CHF=EBS , another safe-haven, traded at

0.9967 per dollar, close to the lowest since Oct. 16.

Bitcoin BTC=BTSP , the world's biggest cryptocurrency, rose

1.34% on Tuesday to $7,218.11, recovering from a six-month low

on Monday after the People's Bank of China (PBOC) launched a

fresh crackdown on cryptocurrencies. The PBOC is stepping up efforts to roll out its own digital

currency, partly to fend off potential threats from Facebook's

proposed digital currency, Libra.

U.S. crude CLc1 was flat at $58.01 a barrel. Brent crude

LCOc1 rose 0.09% to $63.71 per barrel.

(Editing by Sam Holmes)

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
© 2007-2024 - Fusion Media Limited. All Rights Reserved.