© Reuters. A man is watching in front of an electronic board displaying stock market information of a brokerage house in Nanjing.
By Shinichi Saoshiro
TOKYO (Reuters) – Asian stocks led by Chinese stocks after Beijing eased funding rules to spur recovery The local government's spending on public works and investor facilitation as a result of the decision by the government US to remove import duties on Mexico has led to broader support.
Hopes that US interest rates will be lowered next week In early European trading, the entire region grew by 0.06%, in Germany by 0.04% and in futures by 0.1
MSCI's broadest index for Asia-Pacific equities outside Japan grew 0.8%.
China's 2% increase on Monday saw local governments make it possible to use special bond income as capital for major investment projects to support the weakening economy.
Australian equities rose 1.5%, South Koreans 0.55% and Japanese equities up 0%. 3%.
US. Stocks extended their recent gain on Monday with the gain on the sixth trading day.
The relief that the United States had resigned from an immediate imposition of tariffs on Mexico encouraged buyers, though US Secretary of State Mike Pompeo warned the United States that Mexico could still be imposed duties if in its commitment to curb the insufficient progress was made on illegal immigration. ()
While global markets were somewhat relieved, it was found that new threats to US trade against China only slightly boosted investor sentiment.
United States of America. President Donald Trump said Monday he was ready to impose another round of punitive tariffs on Chinese imports if he could make no progress in trade talks with Chinese President Xi Jinping at the G20 summit.
The US President has repeatedly announced that he will meet Xi at the summit meeting on 28/29. June in Osaka, Japan, although China has not yet confirmed such a meeting.
"The US-Mexico trade development boom is likely to be temporary for stock markets The problem between the United States and China remains unresolved," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.
"Markets will be nervous until the G20 summit and there is no guarantee that the situation will improve, even if the leaders of the US and China meet at the summit."
The tensions between Washington and Beijing sharply increased in May after the Trump administration accused China of renouncing promises of bringing about a structural economic crisis staggering during months of trade talks.
Investors fear that the conflict could cause China to retaliate by blacklisting US companies or banning the export of rare earth metals to the United States. China accounts for around 80% of the US rare earth supply, which is indispensable for high-tech goods.
(Graph: Rare Earths – https://tmsnrt.rs/2I9MfL5) [19659004<InthecurrencymarketsthedollarAftergettingbetweenUnitedStatesandMexikovomFridaythecompanyhasexpandedcomparedtotheircompetitive
Compared to a basket of six major currencies, it was slightly higher at 96.774, after rising 0.2% on Monday ,
The dollar was up 0.15% at 108,600 yen and the euro remained stable at $ 1.1315 after a loss of 0.2% the previous day.
The US Treasury 10-year yield peaked at 2.157% overnight, reaching an 11-day high. Yields were up 6bps on Monday as the US-Mexico agreement boosted risk appetite and cut investor demand for safe haven government bonds.
The Treasury Market Volatility Ten-Year Return Last Week After the Federal Reserve fell to a two-year low of 2.053% on Friday after a weak US employment report, expectations were for a rate cut by the Federal Reserve gone up.
The prospect of a key interest rate cut this year has already risen last year One week after a series of Fed officials, including Chairman Jerome Powell, indicated they were open to easing monetary policy.
The focus of the market was on the next political meeting of the Fed on the 18th / 19th monetary policy direction.
"While it's easy to focus on the potential response, if the Fed fails to keep up with market prices, it signals a world where the Fed signals the intention to ease, with a better sense of US-to-US relations and being married to China. " s is a world where traders take an additional risk, "wrote Chris Weston, Melbourne-based research chief for foreign exchange broker Pepperstone.
West Texas Intermediate Futures (WTI) rose 0.58% to $ 53.57 per barrel, and after a decline the previous day, found some pulling power agreement on extending an agreement to cut production and sustained trade tensions between the US and China threatening demand for the raw material. [O / R]