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Asian stocks gain, progress on US-China talks by Reuters

© Reuters. FILE PHOTO: A man stands in front of an electronic board showing the Nikkei stock index in front of a brokerage in Tokyo

By Hideyuki Sano

TOKYO (Reuters) – Asian equities rose Friday on Chinese equities. hoping that Washington and Beijing will make progress in trade talks, while global bond yields have risen following a prolonged decline in worries over the economic outlook.

European stocks are expected to rise, with spread betters affecting German, French and German stocks to open 0.4 to 0.5 percent higher.

The broadest MSCI index for Asia Pacific equities outside Japan gained 0.75 percent, while Japan's 0.8 percent added.

The increase climbed more than 3.1


Market sentiment brightened as Chinese authorities made proposals in trade talks with the United States on a number of issues that went further than before, including forced technology transfers.

US Treasury Secretary Steven Mnuchin said on Friday that he held a "productive working lunch" in Beijing last night, beginning a day of talks to resolve the bitter trade dispute between the two largest economies in the world.

The gains on Wall Street were also strengthened investor optimism. The Thursday rose by 0.36 percent and the increase by 0.34 percent. ()

Despite the recent turmoil, the S & P 500 has so far gained 12.3 percent in the quarter, which would be the best quarterly performance since 2009 over the long term. 10-year US bond yields rose from 2,402 to 2,402 per cent. The 15-month low of 2.352 per cent touched Thursday after an almost relentless decline as the US Federal Reserve's cautious tone last week raised concern over the US dollar. Economic prospects triggered.

Investors have been on alert since the 10-year bond yield fell A reversal in the yield curve, widely regarded as an indicator of a recession, is below the three-month US Treasury last Friday.

Thursday's data showed that US economic growth in the fourth quarter was slower than previously thought. GDP growth dropped from 2.6 percent to 2.2 percent a year ago.

"The economy is weakening and weakening for the time being, but whether the US is in recession is still debated," said Mut Sumi Kagawa, chief strategist at Rakuten Securities.

"Lower bond yields will support the economy, while President Donald Trump is likely to take action to support the economy as he seeks re-election and the economy could recover during the year," he said.

In the currency market, the euro remained stable at $ 1.1232 after falling to a three-week low of $ 1.1214 as speculation was that the European Central Bank would introduce a tiered bank deposit rate.

The yen stood at 110.64 for the dollar, breaking away from Monday's 1/2-month high (109.70).

The Turkish lira fell 1 percent, one day after dropping 4 percent. President Tayyip Erdogan blamed the weakness of the currency for Western attacks before the nationwide local elections on Sunday.

The British pound climbed 0.3 percent to $ 1.3077 after dropping more than 1 percent the previous day The prospect of a quick Brexit agreement faded, the British parliament faded, but succeeded not to agree on another way.

Oil futures recovered quickly from the damage Trump demanded for OPEC to boost crude oil production and lower prices. [O/R] [19659004] Futures traded at $ 59.55 a barrel, up 0.4 percent a day, rebounding from the $ 58.20 Thursday low.

Palladium fell 0.4 percent after dropping 6.6 percent on Thursday. The metal had lost one-sixth of its value from last week's high because concerns were that slowing the economy could affect demand.

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