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Home / Business / Asia stocks rise before G20, oil on US Iran feud From Reuters

Asia stocks rise before G20, oil on US Iran feud From Reuters




© Reuters. A passerby passes by a stock exchange, in front of a broker in Tokyo.

By Tomo Uetake and Noah Sin

TOKYO / HONG KONG (Reuters) – Asian stock markets rose Monday on hopes that the US and Chinese will rise The heads of state and government will be trading talks again this week while oil prices recovered due to political tensions between Tehran and Washington.

European markets are generally expected to trade higher, with the entire region up 0.2%, and London's futures rising 0.1

% in early trade and unchanged in Germany.

In Asia, the Asia-Pacific MSCI Index outside Japan rose 0.2%, close to Thursday's high, while the Japanese average was up 0.1%.

] In China, the blue-chip CSI 300 and Hong Kong remained unchanged.

Wall Street shares closed down slightly on Friday after reaching a record high, as the Federal Reserve signaled last week that they could cut interest rates. Interest rates are expected to soon shore up protracted trade disputes , ()

Investors are nervously waiting for a presumptive meeting between Presidents Donald Trump and Xi Jinping towards the end of this week to see signs of de-escalation in a trade war that damages the global economy and affects business confidence. The heads of state and government are meeting on the sidelines of the G20 summit in Japan.

China and the United States should be willing to compromise on trade talks and not just insist on what each side wants, Deputy Trade Minister Wang Shouwen said Monday. Vice President Mike Pence decided on Friday to cancel a planned China speech, which also increased the optimism ahead of trade talks. Pence had angered China in October with a fierce speech in which he set forth a litany of complaints ranging from state surveillance to human rights abuses.

"Event-driven players buy back stocks as soon as at least the United States and China show up to talk to each other," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley (NYSE 🙂 Securities (MUMSS) ,

Yet, most analysts doubt that the two sides agree. Meaningful agreement as tensions have gone beyond tariffs, especially after Washington blacklisted Huawei, the world's largest telecommunications supplier, for the US Effectively prohibits companies from doing business with the company.

"The very best markets to look forward to are a more patient delay and G20 position formation that at least keeps the US and China from escalating further," wrote Michael Every, senior strategist for the Asia-Pacific region the Rabobank, on Monday in a note.

The US Department of Commerce announced Friday that it is adding several Chinese companies and a state-run institute dealing with super-computing with military applications to its "national security entity list" that bans them, US – Buy American parts and components without state approval.

In China, according to the Global Times newspaper, FedEx Corp (NYSE 🙂 is likely to be in Beijing's list of unreliable companies & # 39; be recorded.

"Few investors would expect dramatic progress in talking about corporate lists just days before a likely summit," said Fujito from MUMSS, adding that markets may be disappointed after the summit.

Oil prices rose as tensions between Tehran and Washington remained high following the shooting down of an unmanned US surveillance drone by Iran with US Secretary of State Mike Pompeo announces "significant" sanctions on Tehran.

Futures rose 0.7% to $ 65.66 a barrel, near the three-week high of $ 65.76 on Friday, while futures rose 1.1% to $ 58.07 and theirs highest level for more than three weeks.

Also, Arab politicians and commentators, who may become a factor in the equation, welcomed Trump's $ 50 billion Middle East economic vision with a mixture of ridicule and anger, though some called for a chance on the Gulf.

The combination of heightened geopolitical concerns and likely interest rate cuts in the US encouraged investors to seek gold safety.

The precious metal was $ 1,404.79 an ounce, not far from the six-year high on Friday of $ 1,410.78

Monday saw the euro rise to a three-month high of $ 1,1386 against the dollar as the bearish bets on The greenback remained solid amid the prospect of a short-term interest rate cut by the Federal Reserve. [FRX/]

The dollar hit 107.42 yen, down from 107.045 on Friday, its lowest level since its crash on 3 January.

Other notable climbers are the Australian dollar. It rose nearly 0.5% to $ 0.6958, its highest level since June 12 as it is expected to rise for the fifth consecutive time as its counterpart in the US undermines its aggressive bets on Fed rate cuts was compensating any downward movement due to the likelihood of a policy easing home.

The Turkish lira gained 1.4% to USD 5.7219 after Turkey's main opposition on Sunday won a major re-election victory in Istanbul and President Tayyip Erdogan gave one of the biggest blows.

Elsewhere, the price rose overnight to $ 11,247.62, its highest level since March 2018. Recently quoted at $ 10,726.68.


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