×
20 Monday, November 4, 2019 07:15

Asian shares hit 14-week highs on trade deal hopes

SHANGHAI (Reuters) - Asian shares surged to more than 14-week highs on Monday as growing optimism over U.S.-China trade talks and upbeat U.S. job data boosted global investors’ appetite for riskier assets.
FILE PHOTO: A passerby walks past in front of a stock quotation board outside a brokerage in Tokyo, Japan, May 10, 2019.

REUTERS/Issei KatoMSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS jumped 1%, touching its highest level since July 25. Hong Kongs Hang Seng .HSI led gains in the region, rising 1.4%, and Seouls Kospi .KS11 added 1.3%. In mainland China, blue chips .CSI300 were up 0.8%, and Australian shares were 0.

3% higher. Markets in Japan were closed for a holiday. The United States and China both said on Friday that they had made progress in talks aimed at defusing their protracted 16-month-long trade war, and U.S. officials said a deal could be signed this month. But in a morning note, analysts at National Australia Bank sounded a note of caution.

“As much as the U.S.-China trade updates continue to point to a Phase 1 deal looking like a certainty, the contentious issues on whether the U.S. will cancel the planned December tariffs and remove some of the current tariffs in line with China’s demands remains an unknown and if the issue is not resolved then a deal could easily collapse,” they said.

In comments on Friday, White House economic adviser Larry Kudlow said tariffs set to kick in on Dec. 15, which would cover Chinese imports such as laptops, toys and electronics, would remain on the table, and the decision whether to cancel them would be made by U.S. President Donald Trump. Any lingering uncertainty over the outlook for trade talks was not enough to keep the S&P 500 .

SPX from gaining 0.97% and the Nasdaq rising 1.13% to fresh record closing highs on Friday. The Dow Jones Industrial Average .DJI rose 1.11%. On Monday, U.S. S&P 500 e-mini stock futures ESc1 were up 0.2% at 3,067.8. U.S. job growth slowed less than expected in October and hiring in the prior two months was stronger than previously estimated, data from the Labor Department showed on Friday.

Those numbers followed a private survey of manufacturers in China that showed better-than-expected factory activity in October. Rob Carnell, Asia-Pacific chief economist at ING in Singapore, said some market optimism was “probably justified” in the wake of the positive data. “Everybody had been looking for a much worse number and it didn’t materialise, so some bounce from that was entirely plausible and reasonable.

” But he added that continued uncertainty over trade talks and less room for monetary easing by global central banks made for a murky outlook. “It’s difficult to see why you wouldn’t be at least thinking, there is a ‘good profit-taking opportunity right now’ and positioning for a slightly worse outcome,” he said.

. While cash treasuries were not.....


News Code: 375830  |  Reuters
All news have been gathered by RoboNewser Crawler

Related News

Most Viewed

In the news
News Images