© Reuters. The market prices are reflected in a glass window at the TSE in Tokyo
. Wayne Cole
SYDNEY (Reuters) – Asian equities are likely to rebound on Monday after US and Chinese leaders voted in their trade dispute over a cease-fire on global economic prospects and a tonic for emerging markets.
Exposure trading resulted in early gains, with the Australian dollar peaking at four months, while the dollar was down against the yuan
futures () pointed to opening profits of around 1.2 percent.
"Markets open with a jolt to risk appetite, but time will tell how sustained the optimism will be," said ANZ economist Jo Masters. "There are already very different official views about what was achieved at the meeting."
"But right now both sides can win," she added. "Perhaps not insignificant, it at least offers a window to export the soybean culture from the main republican states."
China and the United States agreed to stop additional tariffs to prevent the trade war from escalating on both sides Try once again to bridge their differences with new talks that aim to reach a deal within 90 days to achieve.
The White House said on Saturday that President Donald Trump told Chinese President Xi Jinping in high-stakes talks in Argentina that he would not increase tariffs from $ 200 billion in Chinese goods to 25 percent on January 1 as previously announced.
"Controversial and delicate structural issues such as forced technology transfer remain unresolved," warned Westpac FX analyst Robert Rennie.
"This US-China agreement is therefore better characterized as a" small breakthrough "that provides for a brief break in trade tensions than a comprehensive political agreement."
Investors chose the glass as half-full and increased the Dollar up 0.6 percent to $ 0.7355
The US dollar fell to 97.136 () on a basket of currencies, but also edged up to 113.79
The dollar came under pressure last week when Federal Reserve Chair Jerome Powell's comments were interpreted by the markets as suggesting a slower pace of interest rate hikes.
Powell was scheduled to testify on Wednesday before a mixed economic committee of Congress. However, it is expected that the hearing will be postponed until Thursday, as key stock markets will be held on Wednesday in honor of former US President George H.W. getting closed. Bush, who died on Saturday at the age of 94 years.
Government bonds fell sharply late on Friday, dropping 10-year yields to 2.99 percent (). (19659004) The progress in Sino-US trade and a lighter dollar could help support commodity prices.
In November, oil had a weakest month in over 10 years, losing more than 20 percent when global supply outpaced demand. [O/R]
Speculation is high. The Organization of Petroleum Exporting Countries (OPEC) and Russia would agree on a form of production cut at a meeting on Thursday in Vienna.
Brent futures () rose $ 1.21 to $ 60.67 per share of US crude (), gaining $ 1.31 to $ 52.24.
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