US LNG exports surge but will buyers in China turn up?
* MSCI's global gauge near record 2018 peak
* Beijing says U.S., China agree to cancel tariffs in phases
* Sources say the plan meets opposition within White House
* Bond yields soar
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Hideyuki Sano
TOKYO, Nov 8 (Reuters) - World stocks rallied to near record
highs on Friday after China said it had agreed with the United
States to cancel tariffs in phases, a key demand of Beijing for
sealing a deal to end a trade war that has slowed economic
growth and roiled markets.
MSCI's gauge of stocks across the globe .MIWD00000PUS rose
slightly to stand at 543.70, just a hair off the record high of
550.63 reached in January 2018.
The index compiler's gauge of Asia-Pacific shares outside
Japan .MIAPJ0000PUS edged up 0.2% in early trade while Tokyo's
Nikkei .N225 jumped 0.75% to a 13-month high.
China and the United States have agreed to roll back tariffs
on each others' goods as part of the first phase of a trade
deal, officials from both sides said on Thursday, in further
signs of progress even as both side continue to haggle over
several contentious issues. "As the U.S.-China dispute seems to be heading for a
resolution while the developed world is adopting very easy
monetary policy, risk assets are enjoying the tail wind," said
Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset
Management.
The Chinese commerce ministry, without laying out a
timetable, said the two countries had agreed to cancel the
tariffs in phases.
But multiple sources familiar with the talks said the plan
faces fierce internal opposition at the White House and from
outside advisers. While U.S. stocks pared gains on the report of the
opposition to the deal in Washington, the Dow and S&P 500 did
close at all-time highs, while the Nasdaq missed a record close
by less than two-tenths of a point.
The S&P 500 .SPX gained ended 0.27% higher at 3,085.18.
The pan-European STOXX 600 index .STOXX has also pierced
through its January 2018 peak to come within a striking distance
of its record high set in April 2015.
As investors wind back their buying in safe assets, the
10-year U.S. Treasuries yield rose 11.8 basis points to 1.930%
US10YT=RR , marking the biggest daily increase since Nov. 9,
2016, which followed the surprise election victory by Donald
Trump.
The yield has jumped to as high as 1.973%, a three-month
peak, on Thursday and last stood at 1.924%.
The 10-year Japanese government bond yield JP10YT=JBTC
rose to minus 0.050%, a 5-1/2-month high, as expectations of a
Bank of Japan rate cuts dissipated in the past week or so.
In the currency market, the yuan stood firm while safe-haven
currencies lost their edge.
The offshore yuan traded at 6.9976 yuan per dollar CNH= ,
having hit a three-month high of 6.9530 per dollar in U.S. trade
on Thursday.
The dollar climbed to 109.31 yen JPY= , reaching a
five-month high of 109.49 the previous day.
The euro slipped to $1.1050 EUR= , having marked a low of
$1.10355 in U.S. trade, its weakest since Oct. 16.
That helped to push up the dollar index =USD to three-week
highs of 98.236. The index last stood at 98.134.
Gold also eased to $1,467.9 per ounce XAU= , having hit a
five-week low of $1.460.7 on Thursday.
Oil prices gained on the U.S.-China trade deal hopes. U.S.
West Texas Intermediate (WTI) crude CLc1 lost 0.1% to $57.09
per barrel in Asia but has gained 1.4% so far this week.
(Editing by Shri Navaratnam)