By Wayne Cole
SYDNEY (Reuters) – Asian equity markets rose on Monday as signs of progress in the Sino-US trade crisis boosted risk appetite while putting pressure on safe haven bonds and the yen.
Liquidity However, Japan and a partial March leave in the United States were missing for Columbus Day. MSCI's broader index for Asia-Pacific equities outside Japan () gained 0.5%.
Australia's main index gained 0.9% () and South Korea () 1
While Tokyo was on vacation, futures were traded at 22,105 () compared with a Friday close of 21,798 in the Nikkei index. The E-Mini futures for the S & P 500 () also gained 0.36% after a jump on Friday.
The mood was strengthened when US President Donald Trump outlined the first phase of an agreement to end a trade war with China, and an impending deal precluded tariff increases, though officials on both sides said much more work was needed.
The emerging agreement, covering agriculture, currency and some aspects of intellectual property protection, would be the biggest step taken by the two countries in 15 months.  "The substance is more like an extension of the ceasefire – although this was the best the market had hoped for," said Tapas Strickland, director of economics and markets at National Australia Bank.
"Still" It is unlikely that the "partial deal" will give companies more security in investment and hiring decisions in the US or elsewhere, "he warned." As such, trade uncertainty is still likely to affect economic activity
Futures imply a likelihood of around 72% that the Federal Reserve lowers its policy rates at its later meeting this month.
GREAT WEEK FOR A BREXIT  Trade advances were still high enough to push safe-haven bonds with 10-year US Treasury yields up 23 basis points to 1.74% () over the past week.  The yield curve has been Also steeper, as short-term interest rates were pushed by the news that the Fed would buy about $ 60 billion in Treasury bills each month, "sufficient reserve n "in the banking system.
Rally in risk-weighted assets was observed The yen declined across the board, with the dollar trading at 108.40 early Monday after reaching a 10-week high on Friday at 108.61.
The dollar did less well elsewhere, in part due to a rise in the pound sterling, most recently at 98,431 against a basket of currencies () after losing 0.5% last month k.
The dollar also fell to the level of 7.0868.
The pound was cautiously trading at $ 1.2608 after reaching a 15-week high of $ 1.2705 on Friday.
Downing Street and EU officials, however, said that much more work is needed on Sunday to reach an agreement on Britain's exit from the bloc.
The two sides will meet on Monday before a summit meeting of EU leaders on Thursday and Friday in Brussels.
Overall risk sentiment eased another 0.4% to $ 1,483.90 an ounce.
The oil price stabilized following reports that a government Iranian oil tanker had been attacked in the Red Sea.
Investors also watched with concern the invasion of Turkey in Syria, as the White House threatened to threaten Ankara with heavy sanctions 9 cents to $ 54.79 a barrel.