Against this backdrop, MSCI’s index of Asia-Pacific shares outside Japan rises 0.75% ahead of Monday’s European session.

Asian stocks start defensively | US Crude climbs 9 cents to $42.43 | WION

Asian equities fell for a second session today after a warning about the US coronavirus death toll that has investors looking at the safety of dollars and bonds.

Indian markets shut today: Asian stocks slip on fresh virus warning

Asian stocks gained on Friday, joining a global trend as investors took heart from firm US economic data plans hopes a meeting between US and Chinese negotiators next month signals an easing in trade tensions.

The improvement in investors' appetite for risk reduced demand for safe havens such as government bonds and the yen, however.

In early European trade, the pan-region Euro Stoxx 50 futures and German DAX futures were little changed, while Britain's FTSE futures inched down 0.1 per cent.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.4 per cent, putting it on track for a 2.2 per cent weekly gain - which would make it the best week since mid-June.

The Shanghai Composite Index edged up 0.1 per cent. Hong Kong's Hang Seng was up 0.2 per cent, with some earlier gains trimmed after rating agency Fitch downgraded the city's credit rating following months of unrest.

Australian stocks gained 0.5 per cent, South Korea's KOSPI climbed 0.1 per cent and Japan's Nikkei advanced 0.4 per cent.

Global equity markets welcomed news that the United States and China agreed on Thursday to hold high-level talks early in October, raising hopes for substantial progress in de-escalating their long, bitter trade conflict.

Upbeat US data on Thursday also helped sentiment.

US private payrolls increased in August at their fastest pace in four months, according to ADP National Employment Report. Separately the US services industry rebounded last month to its fastest expansion since February, according to the Institute for Supply Management's non-manufacturing purchasing managers index (PMI).

"The strong US data are the main part of the latest turn in markets as they are key factors impacting equities and US yields, therefore determining how long this 'risk on' phase will last," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.

On Thursday, the Dow added 1.4 per cent, the S&amp;P 500 climbed 1.3 per cent and Nasdaq rose 1.75 per cent.

Ishikawa at IG Securities said a US August jobs report ou later in the global day "will get more attention than usual as it could further fuel the risk-on phase, which in turn would boost the dollar."

The non-farm payroll report is expected to show an increase of 158,000 and the unemployment rate holding steady at 3.7 per cent.

The dollar stood at 107.000 yen after climbing to a one-month high of 107.235 overnight. The greenback has gained about 0.7 per cent against the safe-haven yen.

The pound hovered near a six-week peak of $1.2353 scaled the previous day on hopes that Britain could avoid exiting the European Union without a deal.

Sterling had fallen to a three-year low of $1.1959 midweek after British Prime Minister Boris Johnson stoked fears of a no-deal Brexit.

The euro was steady at $1.1039 after rising 0.5 per cent overnight, when it was lifted by sterling's bounce.

The dollar index against a basket of six major currencies was little changed at 98.369 after pulling back from a one-week low of 98.085 the previous day, thanks to a rise in US Treasury yields.

US Treasuries fell in price and their yields rebounded from multi-year lows as investors moved out of safety assets into equities.

The 10-year Treasury yield was at 1.536 per cent, having risen from a three-year trough of 1.428 per cent plumbed midweek as soft economic data and Sino-US trade worries stoked global recession concerns.

"The recent panic in markets was excessive. And if a sustained reversal of fragile sentiment gets under way, US equities will test fresh record highs and a corresponding drop in bond prices will present an good bargain hunting opportunity," said Eiichiro Tani, chief strategist at Daiwa Securities.

Japan's 10-year government bond yield climbed 2.5 basis points to minus 0.250 per cent, putting some distance between a three-year low of minus 0.295% set earlier this week.

The Australian dollar traded close to a one-month peak of $0.6830. It has gained more than 1 per cent this week amid the thaw in US-China trade tensions and tempered prospects for an immediate interest rate cut by the Reserve Bank of Australia.

Brent crude oil futures were little changed at $60.97 per barrel, losing some steam after posting strong gains over the past two sessions.

Brent had climbed to a one-month peak of $62.40 per barrel on Thursday on a decline in US crude inventories and eased trade war worries.

Asian stocks gained on Friday, joining a global trend as investors took heart from firm US economic data plans hopes a meeting between US and Chinese negotiators next month signals an easing in trade tensions.

Asian stocks gained on Friday, joining a global trend as investors took heart from firm US economic data plans hopes a meeting between US and Chinese negotiators next month signals an easing in trade tensions. The improvement in investors' appetite for risk reduced demand for safe havens such as government bonds and the yen, however. In early European trade, the pan-region Euro Stoxx 50 futures and German DAX futures were little changed, while Britain's FTSE futures inched down 0.1 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.4 per cent, putting it on track for a 2.2 per cent weekly gain - which would make it the best week since mid-June. The Shanghai Composite Index edged up 0.1 per cent. Hong Kong's Hang Seng was up 0.2 per cent, with some earlier gains trimmed after rating agency Fitch downgraded the city's credit rating following months of unrest. Australian stocks gained 0.5 per cent, South Korea's KOSPI climbed 0.1 per cent and Japan's Nikkei advanced 0.4 per cent. Global equity markets welcomed news that the United States and China agreed on Thursday to hold high-level talks early in October, raising hopes for substantial progress in de-escalating their long, bitter trade conflict. Upbeat US data on Thursday also helped sentiment. US private payrolls increased in August at their fastest pace in four months, according to ADP National Employment Report. Separately the US services industry rebounded last month to its fastest expansion since February, according to the Institute for Supply Management's non-manufacturing purchasing managers index (PMI). "The strong US data are the main part of the latest turn in markets as they are key factors impacting equities and US yields, therefore determining how long this 'risk on' phase will last," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo. On Thursday, the Dow added 1.4 per cent, the S&P 500 climbed 1.3 per cent and Nasdaq rose 1.75 per cent. Ishikawa at IG Securities said a US August jobs report ou later in the global day "will get more attention than usual as it could further fuel the risk-on phase, which in turn would boost the dollar." The non-farm payroll report is expected to show an increase of 158,000 and the unemployment rate holding steady at 3.7 per cent. The dollar stood at 107.000 yen after climbing to a one-month high of 107.235 overnight. The greenback has gained about 0.7 per cent against the safe-haven yen. The pound hovered near a six-week peak of $1.2353 scaled the previous day on hopes that Britain could avoid exiting the European Union without a deal. Sterling had fallen to a three-year low of $1.1959 midweek after British Prime Minister Boris Johnson stoked fears of a no-deal Brexit. The euro was steady at $1.1039 after rising 0.5 per cent overnight, when it was lifted by sterling's bounce. The dollar index against a basket of six major currencies was little changed at 98.369 after pulling back from a one-week low of 98.085 the previous day, thanks to a rise in US Treasury yields. US Treasuries fell in price and their yields rebounded from multi-year lows as investors moved out of safety assets into equities. The 10-year Treasury yield was at 1.536 per cent, having risen from a three-year trough of 1.428 per cent plumbed midweek as soft economic data and Sino-US trade worries stoked global recession concerns. "The recent panic in markets was excessive. And if a sustained reversal of fragile sentiment gets under way, US equities will test fresh record highs and a corresponding drop in bond prices will present an good bargain hunting opportunity," said Eiichiro Tani, chief strategist at Daiwa Securities. Japan's 10-year government bond yield climbed 2.5 basis points to minus 0.250 per cent, putting some distance between a three-year low of minus 0.295% set earlier this week. The Australian dollar traded close to a one-month peak of $0.6830. It has gained more than 1 per cent this week amid the thaw in US-China trade tensions and tempered prospects for an immediate interest rate cut by the Reserve Bank of Australia. Brent crude oil futures were little changed at $60.97 per barrel, losing some steam after posting strong gains over the past two sessions. Brent had climbed to a one-month peak of $62.40 per barrel on Thursday on a decline in US crude inventories and eased trade war worries.

Asia shares rise on trade talks hope, firm US data; safe havens sold

Asian shares struggled to make any headway on Friday as weak US &nbsp;manufacturing activity and uncertainty over how much further the Federal Reserve would cut rates added to the general air of caution in markets buffeted by global growth fears.

With political tumult in Hong Kong, Italy and Britain adding to the tense backdrop, investors were keenly waiting on a speech by Fed Chairman Jerome Powell later in the day at a gathering of central bankers in Jackson Hole.

MSCI's broadest index of Asia-Pacific shares outside Japan edged 0.1% lower, though it was up 0.6% for the week and on track to break a four-week losing streak.

Japan's benchmark Nikkei added 0.2% and Australian stocks eased 0.1%, while South Korean shares shed 0.3% after Seoul said it will scrap an intelligence-sharing agreement with Japan.

"It's going to be another wait-and-see day for traders ahead of Powell's Jackson Hole speech. Investors are hoping for some soothing words from him," said Hirokazu Kabeya, chief global strategist at Daiwa Securities.

Wall Street stocks were mixed on Thursday, with the S&amp;P 500 closing little changed, while the Dow was up 0.2% and the Nasdaq falling 0.4%.

In the US bond market, the closely watched two-year, 10-year Treasury yield curve briefly moved back into inversion overnight, a shift that also occurred last week and sent financial markets into a tailspin amid worries of a sharp global downturn. An inversion in the US yield curve has presaged several past US recessions, raising fears the decade-long expansion in the world's biggest economy might be nearing its end.

Overnight, there were more signs of easing momentum as a survey showed US manufacturing activity contracted for the first time since September 2009, though better jobless claims data indicated a resilient labour market.

All of that has made Powell's speech in Jackson Hole pivotal for markets as they look for any clues on future policy easing, after the Fed last month cut rates for the first time since the financial crisis. Any indications of hawkishness in the Fed chief's comments might hurt riskier assets, though the dollar stands to benefit.

The greenback slipped on Thursday, but moved within narrow ranges.

In early Asian trading, the dollar was up 0.1% against a basket of major currencies to 98.249.

The euro also was little changed against US currency at $1.1078. A survey showing a surprise uptick in eurozone business growth for August was offset somewhat by trade war fears knocking future expectations to their weakest in over six years.

The pound jumped to a three-week high of $1.2273 overnight after traders interpreted comments from German Chancellor Angela Merkel to mean that a solution to the Irish border problem could be found before Britain leaves the European Union on October 31.

Merkel on Wednesday challenged Britain to come up with alternatives to the Irish border backstop within 30 days, but French President Emmanuel Macron cautioned there would be no renegotiation of the Brexit deal. Sterling last quoted at $1.2244, almost flat on the day.

China's yuan, which slid to fresh 11-1/2-year lows on Thursday despite support from major state-owned banks in both the spot and forwards markets, maintained its weak tone against the dollar amid worries about the deepening Sino-US trade war.

Onshore spot yuan ended the domestic session down 0.3% at 7.0875 per dollar, its weakest such close since March 14, 2008.

In early trade, the offshore yuan stood at 7.0924 to the dollar, little changed on the day.

Oil prices weakened overnight, with both Brent crude and US West Texas Intermediate down 0.6% each, on worries about the global economy.

Brent crude was last up 0.2% at $60.02 per barrel and WTI crude added 0.1% to $55.38.

Gold prices dipped on Thursday but held near the pivotal level of $1,500 per ounce, underpinned by continued demand for the precious metal amid uncertainties around monetary policy, trade and geopolitical tensions.

Spot gold was last down 0.2% at $1,496.00 an ounce.

Asian shares struggled to make any headway on Friday as weak US manufacturing activity and uncertainty over how much further the Federal Reserve would cut rates added to the general air of caution in markets buffeted by global growth fears.

Asian shares struggled to make any headway on Friday as weak US manufacturing activity and uncertainty over how much further the Federal Reserve would cut rates added to the general air of caution in markets buffeted by global growth fears. With political tumult in Hong Kong, Italy and Britain adding to the tense backdrop, investors were keenly waiting on a speech by Fed Chairman Jerome Powell later in the day at a gathering of central bankers in Jackson Hole. MSCI's broadest index of Asia-Pacific shares outside Japan edged 0.1% lower, though it was up 0.6% for the week and on track to break a four-week losing streak. Japan's benchmark Nikkei added 0.2% and Australian stocks eased 0.1%, while South Korean shares shed 0.3% after Seoul said it will scrap an intelligence-sharing agreement with Japan. "It's going to be another wait-and-see day for traders ahead of Powell's Jackson Hole speech. Investors are hoping for some soothing words from him," said Hirokazu Kabeya, chief global strategist at Daiwa Securities. Wall Street stocks were mixed on Thursday, with the S&P 500 closing little changed, while the Dow was up 0.2% and the Nasdaq falling 0.4%. In the US bond market, the closely watched two-year, 10-year Treasury yield curve briefly moved back into inversion overnight, a shift that also occurred last week and sent financial markets into a tailspin amid worries of a sharp global downturn. An inversion in the US yield curve has presaged several past US recessions, raising fears the decade-long expansion in the world's biggest economy might be nearing its end. Overnight, there were more signs of easing momentum as a survey showed US manufacturing activity contracted for the first time since September 2009, though better jobless claims data indicated a resilient labour market. All of that has made Powell's speech in Jackson Hole pivotal for markets as they look for any clues on future policy easing, after the Fed last month cut rates for the first time since the financial crisis. Any indications of hawkishness in the Fed chief's comments might hurt riskier assets, though the dollar stands to benefit. The greenback slipped on Thursday, but moved within narrow ranges. In early Asian trading, the dollar was up 0.1% against a basket of major currencies to 98.249. The euro also was little changed against US currency at $1.1078. A survey showing a surprise uptick in eurozone business growth for August was offset somewhat by trade war fears knocking future expectations to their weakest in over six years. The pound jumped to a three-week high of $1.2273 overnight after traders interpreted comments from German Chancellor Angela Merkel to mean that a solution to the Irish border problem could be found before Britain leaves the European Union on October 31. Merkel on Wednesday challenged Britain to come up with alternatives to the Irish border backstop within 30 days, but French President Emmanuel Macron cautioned there would be no renegotiation of the Brexit deal. Sterling last quoted at $1.2244, almost flat on the day. China's yuan, which slid to fresh 11-1/2-year lows on Thursday despite support from major state-owned banks in both the spot and forwards markets, maintained its weak tone against the dollar amid worries about the deepening Sino-US trade war. Onshore spot yuan ended the domestic session down 0.3% at 7.0875 per dollar, its weakest such close since March 14, 2008. In early trade, the offshore yuan stood at 7.0924 to the dollar, little changed on the day. Oil prices weakened overnight, with both Brent crude and US West Texas Intermediate down 0.6% each, on worries about the global economy. Brent crude was last up 0.2% at $60.02 per barrel and WTI crude added 0.1% to $55.38. Gold prices dipped on Thursday but held near the pivotal level of $1,500 per ounce, underpinned by continued demand for the precious metal amid uncertainties around monetary policy, trade and geopolitical tensions. Spot gold was last down 0.2% at $1,496.00 an ounce.

Asian stocks shaky before Fed Chairman Jerome Powell's speech as growth woes weigh

Asian stocks tracked the Wall Street rally on Monday and found an extra tailwind from a move by China's central bank to change the way a key interest rate benchmark is set, seen by analysts as reducing borrowing costs for companies.

The People's Bank of China (PBOC) on Saturday unveiled key interest rate reforms to help steer borrowing costs lower for companies and support a slowing economy caught in the grip of a bruising trade war with the United States.

That move helped Chinese stocks lead regional gains on Monday amid a broadly more upbeat investor mood. Hopes major economies will seek to prop up slowing growth with fresh stimulus have helped ease some of the recessionary fears unleashed in markets last week.

"The decline in loan rates bodes well for China's credit demand and growth outlook in the second half of 2019 to offset the impact of the ongoing trade disputes," wrote Zhaopeng Xing and Raymond Yeung, economists at ANZ.

"However, the reform is unlikely to have a stimulative effect on China's property markets with the authorities still insisting on tight regulations to prevent the crowding-out effect from high home prices."

In China, the Shanghai Composite Index rose 1.5%. MSCI's broadest index of Asia-Pacific shares outside Japan gained 1%.

Over recent weeks, recession worries - triggered by an inversion in the US bond yield curve - have led to a shakeout in financial markets. That has driven speculation of more support from policy makers, including from the US Federal Reserve which last month cut rates for the first time since the financial crisis.

Australian stocks added 0.9%, South Korea's KOSPI advanced 0.7% and Japan's Nikkei rose 0.7%.

Wall Street shares had rebounded on Friday after a report that Germany's coalition government was prepared to set aside its balanced budget rule in order to take on new debt and launch stimulus steps to counter a possible recession.

The yen, a gauge of risk sentiment due to its perceived status as a safe haven, weakened for its third successive session.

The Japanese currency last traded at 106.375 per dollar, having pulled back from a seven-month peak near 105.000 reached a week ago when events including unrest in Hong Kong and a meltdown in Argentina's markets triggered a fresh bout of anxiety in markets already shaken by the US-China trade war.

"Sentiment in the markets appeared headed for a one-way rout, but policy hopes following reports of the German stimulus have helped halt the steady deterioration," said Ayako Sera, senior market strategist at Sumitomo Mitsui Trust.

"As for steps by China, it needs to be understood that the latest measures are geared towards markets which are already regulated extensively. But China's latest move should nevertheless provide the market with relief."

Elsewhere in currencies, the dollar index against a basket of six major currencies hovered near a two-week high of 98.339 climbed on Friday. The index was supported as US Treasury yields bounced back from recent lows in the wake of German stimulus hopes.

The 10-year US Treasury yield stood at 1.582%, having pulled away from a three-year trough of 1.475% marked last week in the wake of global slowdown fears.

Falling yields last week caused the two-year/10-year Treasury curve to invert for the first since 2007, a phenomenon widely regarded as a recession signal that puts the Federal Reserve interest rate deliberations into focus.

"This week's main event is the Jackson Hole symposium and Fed Chairman (Jerome) Powell's speech," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.

Powell will deliver a speech on Friday at an annual meeting of central bankers in Jackson Hole, Wyoming.

"What Powell has to say is in focus as the discrepancy remains between what he said on interest rates and what the markets have come to expect the Fed will do," Ishikawa said.

Powell said after the Fed lowered rates in July that the easing was not the start of a series of cuts. But market expectations for the Fed to cut rates by another 25 basis points at the next policy meeting in September has topped 80%.

The euro was steady at $1.1092 while the Australian dollar was effectively flat at $0.6780.

Brent crude oil futures gained 1% to $59.22 per barrel, following in the tracks of improved equity markets, with an ebb in recession concerns curbing fears of weak global demand for commodities.

The longer-term outlook for the crude market remained sombre, however, with OPEC on Friday providing a bearish outlook for oil for the rest of 2019.

Asian stocks tracked the Wall Street rally on Monday and found an extra tailwind from a move by China's central bank to change the way a key interest rate benchmark is set, seen by analysts as reducing borrowing costs for companies.

Asian stocks tracked the Wall Street rally on Monday and found an extra tailwind from a move by China's central bank to change the way a key interest rate benchmark is set, seen by analysts as reducing borrowing costs for companies. The People's Bank of China (PBOC) on Saturday unveiled key interest rate reforms to help steer borrowing costs lower for companies and support a slowing economy caught in the grip of a bruising trade war with the United States. That move helped Chinese stocks lead regional gains on Monday amid a broadly more upbeat investor mood. Hopes major economies will seek to prop up slowing growth with fresh stimulus have helped ease some of the recessionary fears unleashed in markets last week. "The decline in loan rates bodes well for China's credit demand and growth outlook in the second half of 2019 to offset the impact of the ongoing trade disputes," wrote Zhaopeng Xing and Raymond Yeung, economists at ANZ. "However, the reform is unlikely to have a stimulative effect on China's property markets with the authorities still insisting on tight regulations to prevent the crowding-out effect from high home prices." In China, the Shanghai Composite Index rose 1.5%. MSCI's broadest index of Asia-Pacific shares outside Japan gained 1%. Over recent weeks, recession worries - triggered by an inversion in the US bond yield curve - have led to a shakeout in financial markets. That has driven speculation of more support from policy makers, including from the US Federal Reserve which last month cut rates for the first time since the financial crisis. Australian stocks added 0.9%, South Korea's KOSPI advanced 0.7% and Japan's Nikkei rose 0.7%. Wall Street shares had rebounded on Friday after a report that Germany's coalition government was prepared to set aside its balanced budget rule in order to take on new debt and launch stimulus steps to counter a possible recession. The yen, a gauge of risk sentiment due to its perceived status as a safe haven, weakened for its third successive session. The Japanese currency last traded at 106.375 per dollar, having pulled back from a seven-month peak near 105.000 reached a week ago when events including unrest in Hong Kong and a meltdown in Argentina's markets triggered a fresh bout of anxiety in markets already shaken by the US-China trade war. "Sentiment in the markets appeared headed for a one-way rout, but policy hopes following reports of the German stimulus have helped halt the steady deterioration," said Ayako Sera, senior market strategist at Sumitomo Mitsui Trust. "As for steps by China, it needs to be understood that the latest measures are geared towards markets which are already regulated extensively. But China's latest move should nevertheless provide the market with relief." Elsewhere in currencies, the dollar index against a basket of six major currencies hovered near a two-week high of 98.339 climbed on Friday. The index was supported as US Treasury yields bounced back from recent lows in the wake of German stimulus hopes. The 10-year US Treasury yield stood at 1.582%, having pulled away from a three-year trough of 1.475% marked last week in the wake of global slowdown fears. Falling yields last week caused the two-year/10-year Treasury curve to invert for the first since 2007, a phenomenon widely regarded as a recession signal that puts the Federal Reserve interest rate deliberations into focus. "This week's main event is the Jackson Hole symposium and Fed Chairman (Jerome) Powell's speech," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo. Powell will deliver a speech on Friday at an annual meeting of central bankers in Jackson Hole, Wyoming. "What Powell has to say is in focus as the discrepancy remains between what he said on interest rates and what the markets have come to expect the Fed will do," Ishikawa said. Powell said after the Fed lowered rates in July that the easing was not the start of a series of cuts. But market expectations for the Fed to cut rates by another 25 basis points at the next policy meeting in September has topped 80%. The euro was steady at $1.1092 while the Australian dollar was effectively flat at $0.6780. Brent crude oil futures gained 1% to $59.22 per barrel, following in the tracks of improved equity markets, with an ebb in recession concerns curbing fears of weak global demand for commodities. The longer-term outlook for the crude market remained sombre, however, with OPEC on Friday providing a bearish outlook for oil for the rest of 2019.

Asia stocks gain as China rates tweak lifts investor mood

Asian stocks took another beating on Friday (August 2) with investors piling into safe-haven assets after U.S. President Donald Trump said he would slap a 10% tariff on the remaining $300 billion of Chinese imports starting September 1

Trump's tariffs sends Asia stocks dipping

Asian stocks edged up on Tuesday as equity investors prepared for an expected US interest rate cut this week while heightened concerns in currency markets about a no-deal Brexit sent the pound to a 28-month low.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.15%.

South Korea's KOSPI advanced 0.2% and Japan's Nikkei added 0.7%. Australian stocks climbed as much as 0.7% to touch a record high, supported by buoyant mining shares and adding to the previous day's tech-driven gains.

The US Federal Reserve begins a two-day policy meeting later on Tuesday, at which it is widely expected to lower interest rates by 25 basis points. If implemented, it would be the central bank's first rate cut in a decade.

Prospective monetary easing by the Fed has been a key factor behind the recent bull run by global equities, particularly US stocks, which have notched up record highs over the past month.

"Up until now, many market participants had been on the sidelines while the markets factored in the likelihood of the Fed's rate cut," said Kota Hirayama, senior emerging markets economist at SMBC Nikko Securities, regarding gains by Asian stocks.

"But with the Fed decision looming close some participants appear to be shaking off the caution and buying."

Also drawing some attention were US-China trade negotiations due to begin in Shanghai on Tuesday, although expectations for progress during the two-day meeting are low with the markets hoping the two sides can at least detail commitments for "goodwill" gestures.

In currencies, the pound extended an overnight slump and fell to $1.2210, its lowest level since March 2017.

Sterling has suffered as investors scrambled to price in the possibility that a last-minute agreement to avert a no-deal Brexit may not be realised under British Prime Minister Boris Johnson, who has said the Brexit divorce was dead.

The British government said on Monday it assumed there would be a no-deal Brexit because a "stubborn" EU was refusing to renegotiate their departure.

The dollar index against at basket of six major currencies was a shade higher at 98.084 and not too far from 98.165, a two-month top scaled on Monday on the back of better-than-expected US GDP data.

The greenback was 0.1% higher at 108.900 yen after brushing a three-week high of 108.950.

Immediate focus for the yen was on the Bank of Japan's two-day policy meeting due to end later on Tuesday.

The BOJ is widely expected to sand pat on policy, although some expect it to tweak its forward guidance -a pledge central banks make on future monetary policy moves- with the central bank under increasing pressure to keep up with its dovish peers.

The euro was unchanged at $1.1142 after edging up 0.15% the previous day.

Crude oil prices added to the previous gains, when the stronger-than-expected US GDP strengthened the outlook for oil consumption by the world's largest economy.&nbsp;

US crude futures were up 0.6% at $57.22 per barrel and Brent crude added 0.5% to $64.03.

Asian stocks edged up on Tuesday as equity investors prepared for an expected US interest rate cut this week while heightened concerns in currency markets about a no-deal Brexit sent the pound to a 28-month low.

Asian stocks edged up on Tuesday as equity investors prepared for an expected US interest rate cut this week while heightened concerns in currency markets about a no-deal Brexit sent the pound to a 28-month low. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.15%. South Korea's KOSPI advanced 0.2% and Japan's Nikkei added 0.7%. Australian stocks climbed as much as 0.7% to touch a record high, supported by buoyant mining shares and adding to the previous day's tech-driven gains. The US Federal Reserve begins a two-day policy meeting later on Tuesday, at which it is widely expected to lower interest rates by 25 basis points. If implemented, it would be the central bank's first rate cut in a decade. Prospective monetary easing by the Fed has been a key factor behind the recent bull run by global equities, particularly US stocks, which have notched up record highs over the past month. "Up until now, many market participants had been on the sidelines while the markets factored in the likelihood of the Fed's rate cut," said Kota Hirayama, senior emerging markets economist at SMBC Nikko Securities, regarding gains by Asian stocks. "But with the Fed decision looming close some participants appear to be shaking off the caution and buying." Also drawing some attention were US-China trade negotiations due to begin in Shanghai on Tuesday, although expectations for progress during the two-day meeting are low with the markets hoping the two sides can at least detail commitments for "goodwill" gestures. In currencies, the pound extended an overnight slump and fell to $1.2210, its lowest level since March 2017. Sterling has suffered as investors scrambled to price in the possibility that a last-minute agreement to avert a no-deal Brexit may not be realised under British Prime Minister Boris Johnson, who has said the Brexit divorce was dead. The British government said on Monday it assumed there would be a no-deal Brexit because a "stubborn" EU was refusing to renegotiate their departure. The dollar index against at basket of six major currencies was a shade higher at 98.084 and not too far from 98.165, a two-month top scaled on Monday on the back of better-than-expected US GDP data. The greenback was 0.1% higher at 108.900 yen after brushing a three-week high of 108.950. Immediate focus for the yen was on the Bank of Japan's two-day policy meeting due to end later on Tuesday. The BOJ is widely expected to sand pat on policy, although some expect it to tweak its forward guidance -a pledge central banks make on future monetary policy moves- with the central bank under increasing pressure to keep up with its dovish peers. The euro was unchanged at $1.1142 after edging up 0.15% the previous day. Crude oil prices added to the previous gains, when the stronger-than-expected US GDP strengthened the outlook for oil consumption by the world's largest economy. US crude futures were up 0.6% at $57.22 per barrel and Brent crude added 0.5% to $64.03.

Asia stocks higher ahead of Fed, pound pressured by fresh Brexit pain

Asian stocks struggled to rebound on Tuesday as investors came to terms with sharply reduced expectations the Federal Reserve will deliver a large interest rate cut at the end of July.

Those views were bolstered after solid gains in US jobs for June and pushed down Wall Street for the second straight day.

MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.1% in early trade, after falling 0.6% the previous day. Japan's Nikkei rose 0.5% thanks in part to the yen's retreat against the dollar.

On Wall Street, the S&amp;P 500 lost 0.48% while the Nasdaq Composite dropped 0.78%, led by fall in Apple Inc.

Money market futures are still fully pricing in a 25 basis point cut at the Fed's next policy meeting on July 30-31, but have almost priced out a larger 50 basis point reduction.

"The headline payrolls figures was pretty strong but wages were tepid, so, on the whole, a 25 basis-point cut would be justified as a pre-emptive move and I think the current market pricing is fair," said Naoya Oshikubo, senior economist at Sumitomo Mitsui Trust Asset Management.

Investors' focus is shifting to Fed Chairman Jerome Powell's testimony before Congress later in the week for clues on monetary policy.

In the currency market, fading expectations of aggressive easing by the Fed helped the dollar.

The euro traded at $1.1215, near Monday's low of $1.1207, its weakest level since June 19.

The dollar changed hands at 108.75 yen, having risen up to 108.81 yen in the previous session, its highest in more than a month.

The British pound stood at 1.2518, not far from six-month lows of $1.2481 touched on Friday.

Oil prices were slightly softer as concerns about whether slowing global economic growth would hit oil demand eclipsed tensions over Iran's nuclear programme.

Brent crude futures fell 23 cents, or 0.36% to settle at $63.88 a barrel. US West Texas Intermediate (WTI) crude futures shed 19 cents, or 0.33% to settle at $57.47 a barrel.

Asian stocks struggled to rebound on Tuesday as investors came to terms with sharply reduced expectations the Federal Reserve will deliver a large interest rate cut at the end of July.

Asian stocks struggled to rebound on Tuesday as investors came to terms with sharply reduced expectations the Federal Reserve will deliver a large interest rate cut at the end of July. Those views were bolstered after solid gains in US jobs for June and pushed down Wall Street for the second straight day. MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.1% in early trade, after falling 0.6% the previous day. Japan's Nikkei rose 0.5% thanks in part to the yen's retreat against the dollar. On Wall Street, the S&P 500 lost 0.48% while the Nasdaq Composite dropped 0.78%, led by fall in Apple Inc. Money market futures are still fully pricing in a 25 basis point cut at the Fed's next policy meeting on July 30-31, but have almost priced out a larger 50 basis point reduction. "The headline payrolls figures was pretty strong but wages were tepid, so, on the whole, a 25 basis-point cut would be justified as a pre-emptive move and I think the current market pricing is fair," said Naoya Oshikubo, senior economist at Sumitomo Mitsui Trust Asset Management. Investors' focus is shifting to Fed Chairman Jerome Powell's testimony before Congress later in the week for clues on monetary policy. In the currency market, fading expectations of aggressive easing by the Fed helped the dollar. The euro traded at $1.1215, near Monday's low of $1.1207, its weakest level since June 19. The dollar changed hands at 108.75 yen, having risen up to 108.81 yen in the previous session, its highest in more than a month. The British pound stood at 1.2518, not far from six-month lows of $1.2481 touched on Friday. Oil prices were slightly softer as concerns about whether slowing global economic growth would hit oil demand eclipsed tensions over Iran's nuclear programme. Brent crude futures fell 23 cents, or 0.36% to settle at $63.88 a barrel. US West Texas Intermediate (WTI) crude futures shed 19 cents, or 0.33% to settle at $57.47 a barrel.

Asian stocks hobbled by fading expectations for aggressive Fed rate cut

<a href="https://www.wionews.com/business-economy/gold-rises-as-focus-returns-to-growth-concerns-fed-rate-cut-233960/amp">Gold prices</a> ticked lower on Tuesday, as the dollar scaled to multi-week highs on reduced expectations of an aggressive US rate cut, although softer share markets capped the metal's losses.

Spot gold was down 0.2% at $1,393.03 per ounce as of 0740 GMT.

US&nbsp;gold futures fell 0.3% to $1,395.70 an ounce.

"Weakness in gold prices is largely due to an easing of rate cut expectations and bond yields are recovering. Markets continue to price in a 25 basis point cut but it looks like sentiment is easing and the dollar has rebounded," said Benjamin Lu, an analyst at Phillip Futures.

The dollar index hit a near three-week peak, making bullion expensive for holders of other currencies. The US Treasury yield curve hit its flattest level in more than a month after investors rolled back expectations for a sharp U.S. rate cut at the end of July. [USD/] [US/]

A week ago, the market forecast an 80.1% chance of a 25-basis-point cut, and a 19.9% chance of a 50-basis-point cut, according to CME Group's FedWatch tool. The chances are now 98% and 2%, respectively.

Adding to the reduced expectations for a larger cut, U.S. consumers in June lifted their inflation expectations for the first time in three months, New York Fed data showed on Monday.

However, the decline in gold prices was limited by weaker financial markets, with <a href="https://www.wionews.com/business-economy/asian-stocks-hobbled-by-fading-expectations-for-aggressive-fed-rate-cut-234146">Asian stocks</a> falling to their lowest in two-and-a-half weeks on Tuesday.

"We're seeing a lot of Fed policy uncertainty leak into the equation across risk assets in general. Equity markets falling is the most poignant example supporting gold prices," said Stephen Innes, managing partner at Vanguard Markets.

Market participants now await Fed Chairman Jerome Powell's two-day testimony before Congress, which starts on Wednesday for clues about a rate decrease.

Meanwhile, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.15% to 795.80 tonnes on Monday from 796.97 tonnes on Friday.

Hedge funds and money managers raised their bullish stance in COMEX gold in the week to July 2, the U.S. Commodity Futures Trading Commission (CFTC) said on Monday in a report delayed because of the US Independence Day holiday.

On the technical side, spot gold may end its correction around a support at $1,387 and then retest a resistance at $1,421 per ounce, according to Reuters technical analyst Wang Tao.

Among other precious metals, silver gained 0.1% to $15.04 per ounce.

Palladium slipped 0.4% to $1,555.32, and platinum fell 0.2% to $812.23

Gold prices ticked lower on Tuesday, as the dollar scaled to multi-week highs on reduced expectations of an aggressive US rate cut, although softer share markets capped the metal's losses.

Gold prices ticked lower on Tuesday, as the dollar scaled to multi-week highs on reduced expectations of an aggressive US rate cut, although softer share markets capped the metal's losses. Spot gold was down 0.2% at $1,393.03 per ounce as of 0740 GMT. US gold futures fell 0.3% to $1,395.70 an ounce. "Weakness in gold prices is largely due to an easing of rate cut expectations and bond yields are recovering. Markets continue to price in a 25 basis point cut but it looks like sentiment is easing and the dollar has rebounded," said Benjamin Lu, an analyst at Phillip Futures. The dollar index hit a near three-week peak, making bullion expensive for holders of other currencies. The US Treasury yield curve hit its flattest level in more than a month after investors rolled back expectations for a sharp U.S. rate cut at the end of July. [USD/] [US/] A week ago, the market forecast an 80.1% chance of a 25-basis-point cut, and a 19.9% chance of a 50-basis-point cut, according to CME Group's FedWatch tool. The chances are now 98% and 2%, respectively. Adding to the reduced expectations for a larger cut, U.S. consumers in June lifted their inflation expectations for the first time in three months, New York Fed data showed on Monday. However, the decline in gold prices was limited by weaker financial markets, with Asian stocks falling to their lowest in two-and-a-half weeks on Tuesday. "We're seeing a lot of Fed policy uncertainty leak into the equation across risk assets in general. Equity markets falling is the most poignant example supporting gold prices," said Stephen Innes, managing partner at Vanguard Markets. Market participants now await Fed Chairman Jerome Powell's two-day testimony before Congress, which starts on Wednesday for clues about a rate decrease. Meanwhile, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.15% to 795.80 tonnes on Monday from 796.97 tonnes on Friday. Hedge funds and money managers raised their bullish stance in COMEX gold in the week to July 2, the U.S. Commodity Futures Trading Commission (CFTC) said on Monday in a report delayed because of the US Independence Day holiday. On the technical side, spot gold may end its correction around a support at $1,387 and then retest a resistance at $1,421 per ounce, according to Reuters technical analyst Wang Tao. Among other precious metals, silver gained 0.1% to $15.04 per ounce. Palladium slipped 0.4% to $1,555.32, and platinum fell 0.2% to $812.23

Gold edges lower as dollar firms; weaker equities limit losses

Asian stocks struggled on Friday to follow Wall Street's euphoria about a possible US rate cut next month as anxiety over Sino-US trade negotiations clouded investor sentiment in the region.

Also tempering appetite in Asia were fresh worries about the Middle East, after Iran shot down a US military drone, raising fears of a military confrontation between Tehran and Washington and pushing the crude oil price higher.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1%. The index was up about 4% on the week, during which it brushed its highest level since May 8.

The Shanghai Composite Index rose 0.4%, Australian stocks declined 0.3% and Japan's Nikkei shed 0.2% amid the yen's big surge.

The S&amp;P 500 hit a record high on Thursday after this week's Federal Reserve meeting boosted expectations that the central bank will cut interest rates as soon as next month to keep the US-China trade war from stalling economic growth.

The Fed signalled easing after the conclusion of its policy-setting meeting on Wednesday, saying it was ready to battle growing global and domestic economic risks.

"There is no doubt that this week's FOMC meeting outcome is positive for the financial markets including those in Asia," said Kota Hirayama, senior emerging-market economist at SMBC Nikko Securities in Tokyo.

"That said, the FOMC alone won't be able to sustain Asian equities indefinitely until some kind of solution can be worked out for the US-China trade war at the G20, since the region is particularly vulnerable to the conflict."

Investors have pinned hopes on the United States and China reaching some sort of compromise at the sidelines of the G20 summit in Japan on June 28-29.

In currency markets, the prospect of US interest rates being lowered put the dollar squarely on the defensive.

The dollar index against a basket of six major currencies fell to a two-week low of 96.495. The index has shed roughly 1% this week.

The greenback has fallen 1.3% versus the yen this week and slid to a six-month low of 107.12 yen on Friday.

The euro was a touch higher at $1.1302 after popping up to an eight-day high of $1.1317 in the previous session. The single currency was headed for a weekly gain of 0.8%.

With the Fed expected to ease policy soon, and with other central banks such as the European Central Bank and the Bank of Japan seen following in their wake, government bonds were on a bullish footing.

The benchmark 10-year US Treasury yield surged in price and its yield fell below 2% for the first time in 2-1/2 years on Thursday. It last stood at 2.007%.

The German 10-year bond yield touched a record low of minus 0.329% this week while Japan's 10-year yield fell to a near three-year trough of minus 0.185% overnight.

"In euroland and Japan, central banks are pedal-to-the-metal to revive dead economies after a dozen years of subpar growth," wrote Carl Weinberg, chief international economist at High Frequency Economics.

"In North America, the game has been to throttle well-performing economies before they overheat with inflation consequences."

In oil markets, crude rose to three-week highs after Iran shot down a US military drone, raising fears of about fresh conflict in the Middle East and supply constraints.

US crude oil futures were up 0.68% at $57.46 per barrel after rallying more than 5% the previous day.

Spot gold advanced to a six-year high of $1,410.78 an ounce as the prospect of lower US interest rates helped boost the non-yielding precious metal. Gold has soared nearly 5% this week.

Asian stocks struggled on Friday to follow Wall Street's euphoria about a possible US rate cut next month as anxiety over Sino-US trade negotiations clouded investor sentiment in the region.

Asian stocks struggled on Friday to follow Wall Street's euphoria about a possible US rate cut next month as anxiety over Sino-US trade negotiations clouded investor sentiment in the region. Also tempering appetite in Asia were fresh worries about the Middle East, after Iran shot down a US military drone, raising fears of a military confrontation between Tehran and Washington and pushing the crude oil price higher. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1%. The index was up about 4% on the week, during which it brushed its highest level since May 8. The Shanghai Composite Index rose 0.4%, Australian stocks declined 0.3% and Japan's Nikkei shed 0.2% amid the yen's big surge. The S&P 500 hit a record high on Thursday after this week's Federal Reserve meeting boosted expectations that the central bank will cut interest rates as soon as next month to keep the US-China trade war from stalling economic growth. The Fed signalled easing after the conclusion of its policy-setting meeting on Wednesday, saying it was ready to battle growing global and domestic economic risks. "There is no doubt that this week's FOMC meeting outcome is positive for the financial markets including those in Asia," said Kota Hirayama, senior emerging-market economist at SMBC Nikko Securities in Tokyo. "That said, the FOMC alone won't be able to sustain Asian equities indefinitely until some kind of solution can be worked out for the US-China trade war at the G20, since the region is particularly vulnerable to the conflict." Investors have pinned hopes on the United States and China reaching some sort of compromise at the sidelines of the G20 summit in Japan on June 28-29. In currency markets, the prospect of US interest rates being lowered put the dollar squarely on the defensive. The dollar index against a basket of six major currencies fell to a two-week low of 96.495. The index has shed roughly 1% this week. The greenback has fallen 1.3% versus the yen this week and slid to a six-month low of 107.12 yen on Friday. The euro was a touch higher at $1.1302 after popping up to an eight-day high of $1.1317 in the previous session. The single currency was headed for a weekly gain of 0.8%. With the Fed expected to ease policy soon, and with other central banks such as the European Central Bank and the Bank of Japan seen following in their wake, government bonds were on a bullish footing. The benchmark 10-year US Treasury yield surged in price and its yield fell below 2% for the first time in 2-1/2 years on Thursday. It last stood at 2.007%. The German 10-year bond yield touched a record low of minus 0.329% this week while Japan's 10-year yield fell to a near three-year trough of minus 0.185% overnight. "In euroland and Japan, central banks are pedal-to-the-metal to revive dead economies after a dozen years of subpar growth," wrote Carl Weinberg, chief international economist at High Frequency Economics. "In North America, the game has been to throttle well-performing economies before they overheat with inflation consequences." In oil markets, crude rose to three-week highs after Iran shot down a US military drone, raising fears of about fresh conflict in the Middle East and supply constraints. US crude oil futures were up 0.68% at $57.46 per barrel after rallying more than 5% the previous day. Spot gold advanced to a six-year high of $1,410.78 an ounce as the prospect of lower US interest rates helped boost the non-yielding precious metal. Gold has soared nearly 5% this week.

Asian stocks fail to catch Wall Street's Fed rally as trade angst persists

Asian stock&nbsp;markets&nbsp;were mixed on Friday, with sentiment torn between investors worried that the <a href="https://www.wionews.com/world/china-says-us-must-show-sincerity-for-trade-talks-to-continue-221010">US-China trade war</a> was becoming more protracted, and others hope that the world's two largest economies would reach a settlement soon.

European stock&nbsp;markets&nbsp;looked slightly more optimistic. In early trade, futures for the pan-region Euro Stoxx 50 index and German DAX futures gained 0.4%, and London's FTSE futures were up 0.3%.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan bounced back to trade flat after hitting a four-month low earlier. The index is still on track for a third straight weekly loss, down 0.8% so far on the week.

Chinese equities firmed as some investors took advantage of cheap share prices. The Shanghai Composite gained 0.1% and the blue-chip CSI 300 rose 0.4% in afternoon trade. Hong Kong's Hang Seng added 0.3%.

Japan's Nikkei average was lower by 0.3%.

On Wall Street, the Dow Jones Industrial Average fell 1.1%, the S&amp;P 500 lost 1.2% and the Nasdaq Composite dropped 1.6%, as traders dumped cyclical names on fears that the escalating US-China trade war would stymie&nbsp;global&nbsp;economic growth.

US President Donald Trump said on Thursday that Washington's complaints against Huawei Technologies might be resolved within the framework of a US-China trade deal while calling the Chinese telecom giant "very dangerous."

Jasper Lawler, head of research at London Capital Group, said,&nbsp;&nbsp;"the fact that Trump is still talking about a trade agreement is offering some optimism to the&nbsp;markets."

"Traders have been focused on the damage to the&nbsp;global&nbsp;economy that a prolonged trade war could cause, so a break from the bad news is cautiously lifting sentiment," he wrote in a note on Friday, commenting on the expected higher European open.

Washington last week effectively banned US firms from doing business with Huawei, the world's largest networking gear maker, citing national security concerns.

The US Commerce Department said on Thursday it was proposing a new rule to impose anti-subsidy duties on products from countries that undervalue their currencies, in another move that could penalise Chinese products.

China's Commerce Ministry hit back on Thursday, with its spokesman saying "if the United States wants to continue trade talks, they should show sincerity and correct their wrong actions."

Masanari Takada, the cross-assets strategist at Nomura Securities in Tokyo, said the US-China trade conflict "has not yet fully dented the&nbsp;global&nbsp;investor sentiment, so there is no panic-selling. But at the same time, the sentiment will likely remain weak."

As flight-to-safety plays dominated&nbsp;global&nbsp;markets, the benchmark 10-year US Treasury note yield hit 2.292%, the lowest level since mid-October 2017, with the key parts of the yield curve inverted. The yield last stood at 2.3237%.

Chotaro Morita, the chief fixed-income strategist at SMBC Nikko Securities, said big falls shown in a fresh US manufacturing survey appear to reflect expectations of a breakdown in the US-China trade talks.

"In the last couple of years, the PMI has had a very small gap with hard data, such as industrial output. So if that holds true this time, we could see factory production plunging into negative levels (compared to a year ago)."

"Since the&nbsp;global&nbsp;financial crisis, US&nbsp;output has fallen only once: from 2015 to early 2016 when the shale industry was badly hit.&nbsp;Markets&nbsp;could start to fret over a&nbsp;global&nbsp;slowdown as they have done late last year."

The dollar index, which measures it against six major currencies, hit a high of 98.371 on Thursday US&nbsp;time. It was last quoted at 97.847, little changed on the day.

The euro on Thursday slumped to levels last seen in May 2017 as a recovery in eurozone business activity was weaker than expected. Early Friday, the currency was flat on the day at $1.1181.

Sterling weakened again on Thursday as pressure mounted on<a href="https://www.wionews.com/world/british-pm-theresa-may-expected-to-announce-her-departure-on-friday-report-220845"> British Prime Minister Theresa May</a> to name a date for her departure after a backlash over her last-ditch plans for Britain's exit from the European Union.

The pound was last traded at $1.2663, little changed on the day. Sterling suffered its 14th consecutive day of losses against the euro on Thursday, its longest losing streak on record. It stood at 0.8829 pounds to the euro.

Other major currencies were relatively calm. The dollar was holding at 109.59 yen, flat on the day.

In commodity&nbsp;markets, oil prices tumbled on Thursday as trade tensions dampened the demand outlook, with the crude benchmarks posting their biggest daily falls in six months.

Oil prices stabilised on Friday amid OPEC supply cuts and tensions in the Middle East.

US crude was last seen at $58.58 a barrel, up 1.16%, after Thursday's 5.7% fall that took it to the lowest in two months. Brent crude futures rebounded 1.18% to $68.56 per barrel, after falling 4.6% in the previous session.

Asian stock markets were mixed on Friday, with sentiment torn between investors worried that the US-China trade war was becoming more protracted, and others hope that the world's two largest economies would reach a settlement soon.

Asian stock markets were mixed on Friday, with sentiment torn between investors worried that the US-China trade war was becoming more protracted, and others hope that the world's two largest economies would reach a settlement soon. European stock markets looked slightly more optimistic. In early trade, futures for the pan-region Euro Stoxx 50 index and German DAX futures gained 0.4%, and London's FTSE futures were up 0.3%. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan bounced back to trade flat after hitting a four-month low earlier. The index is still on track for a third straight weekly loss, down 0.8% so far on the week. Chinese equities firmed as some investors took advantage of cheap share prices. The Shanghai Composite gained 0.1% and the blue-chip CSI 300 rose 0.4% in afternoon trade. Hong Kong's Hang Seng added 0.3%. Japan's Nikkei average was lower by 0.3%. On Wall Street, the Dow Jones Industrial Average fell 1.1%, the S&P 500 lost 1.2% and the Nasdaq Composite dropped 1.6%, as traders dumped cyclical names on fears that the escalating US-China trade war would stymie global economic growth. US President Donald Trump said on Thursday that Washington's complaints against Huawei Technologies might be resolved within the framework of a US-China trade deal while calling the Chinese telecom giant "very dangerous." Jasper Lawler, head of research at London Capital Group, said, "the fact that Trump is still talking about a trade agreement is offering some optimism to the markets." "Traders have been focused on the damage to the global economy that a prolonged trade war could cause, so a break from the bad news is cautiously lifting sentiment," he wrote in a note on Friday, commenting on the expected higher European open. Washington last week effectively banned US firms from doing business with Huawei, the world's largest networking gear maker, citing national security concerns. The US Commerce Department said on Thursday it was proposing a new rule to impose anti-subsidy duties on products from countries that undervalue their currencies, in another move that could penalise Chinese products. China's Commerce Ministry hit back on Thursday, with its spokesman saying "if the United States wants to continue trade talks, they should show sincerity and correct their wrong actions." Masanari Takada, the cross-assets strategist at Nomura Securities in Tokyo, said the US-China trade conflict "has not yet fully dented the global investor sentiment, so there is no panic-selling. But at the same time, the sentiment will likely remain weak." As flight-to-safety plays dominated global markets, the benchmark 10-year US Treasury note yield hit 2.292%, the lowest level since mid-October 2017, with the key parts of the yield curve inverted. The yield last stood at 2.3237%. Chotaro Morita, the chief fixed-income strategist at SMBC Nikko Securities, said big falls shown in a fresh US manufacturing survey appear to reflect expectations of a breakdown in the US-China trade talks. "In the last couple of years, the PMI has had a very small gap with hard data, such as industrial output. So if that holds true this time, we could see factory production plunging into negative levels (compared to a year ago)." "Since the global financial crisis, US output has fallen only once: from 2015 to early 2016 when the shale industry was badly hit. Markets could start to fret over a global slowdown as they have done late last year." The dollar index, which measures it against six major currencies, hit a high of 98.371 on Thursday US time. It was last quoted at 97.847, little changed on the day. The euro on Thursday slumped to levels last seen in May 2017 as a recovery in eurozone business activity was weaker than expected. Early Friday, the currency was flat on the day at $1.1181. Sterling weakened again on Thursday as pressure mounted on British Prime Minister Theresa May to name a date for her departure after a backlash over her last-ditch plans for Britain's exit from the European Union. The pound was last traded at $1.2663, little changed on the day. Sterling suffered its 14th consecutive day of losses against the euro on Thursday, its longest losing streak on record. It stood at 0.8829 pounds to the euro. Other major currencies were relatively calm. The dollar was holding at 109.59 yen, flat on the day. In commodity markets, oil prices tumbled on Thursday as trade tensions dampened the demand outlook, with the crude benchmarks posting their biggest daily falls in six months. Oil prices stabilised on Friday amid OPEC supply cuts and tensions in the Middle East. US crude was last seen at $58.58 a barrel, up 1.16%, after Thursday's 5.7% fall that took it to the lowest in two months. Brent crude futures rebounded 1.18% to $68.56 per barrel, after falling 4.6% in the previous session.

Asia stocks flat as trade worries linger, Europe to open higher

<a href="https://www.google.com/url?q=https://www.wionews.com/business-economy/asian-stocks-lifted-by-us-china-trade-talk-hopes-197048&amp;sa=U&amp;ved=0ahUKEwiZoYXHiNThAhUB4XMBHQL4A0kQFggIMAE&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw38o17yfMz2DQnFEgxt2-mZ">Asian stocks</a> ticked up on Tuesday, staying near a nine-month as hopes of stabilisation in the Chinese economy helped investors shrug off Wall Street's underperformance that followed disappointing bank earnings.

European shares are set to pick up, with futures of London and Frankfurt shares rising 0.2 to 0.3 per cent.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent, led by gains in China and India.

The index had risen to its highest level since July 2018 the previous day after strong export and banking data from China last week eased investors' concerns about the health of the world's second-largest economy.

Mainland Chinese shares rose 1.7 per cent, partly on brisk home prices data while India's NSE index rose 0.8 per cent to a record high, surpassing its previous peak hit earlier this month. Japan's Nikkei edged up 0.2 per cent.

"Recent Chinese data is boosting confidence in the Chinese economy while earnings have not been bad either," said Yukino Yamada, senior strategist at Daiwa Securities.

"Indian shares are rising on hopes on the country's elections. In the past they have tended to do well during a six-month period leading up to the election as well as one month after the election," she added.

Expectations that Chinese and US trade negotiators would strike a deal soon also underpinned markets.

The<a href="https://www.google.com/url?q=https://www.wionews.com/business-economy/global-markets-asia-stocks-advance-on-us-china-trade-relief-191131&amp;sa=U&amp;ved=0ahUKEwiZoYXHiNThAhUB4XMBHQL4A0kQFggLMAI&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw1gCqNxU-xCFvQdRxRugh64"> US-China</a> trade dispute, signs of slowing global corporate earnings and business investment have all put pressure on riskier assets in the past year, so investors have been quick to lap up positive news.

Wall Street lost ground on Monday, dragged down as underwhelming bank earnings curbed investor enthusiasm. But while all three major US stock indexes edged lower, the S&amp;P 500 remained within a per cent of its record high.

Safe havens such as bonds, which were on the defensive following the recent improvement in investor risk appetite, were given some reprieve.

The 10-year US Treasury yield was at 2.548 per cent, edging back from a four-week high of 2.574 per cent reached on Monday.

Spot gold was a shade lower at $1,286.21 an ounce and headed for its fourth straight days of losses.

Elsewhere in commodities, the recent rally in crude oil prices halted on the prospect of Russia and OPEC boosting production to fight for market share with the United States.&nbsp;

US West Texas Intermediate crude futures were down 0.15 per cent at $63.30 per barrel after losing nearly 0.8 per cent the previous day.

US crude had scaled a five-month high of $64.79 earlier this month.

Oil had rallied on tightening global supplies, as output has fallen in Iran and Venezuela amid signs the United States will further toughen sanctions on those two OPEC producers, and on the threat that renewed fighting could stop production in Libya.

Asian stocks ticked up on Tuesday, staying near a nine-month as hopes of stabilisation in the Chinese economy helped investors shrug off Wall Street's underperformance that followed disappointing bank earnings.

Asian stocks ticked up on Tuesday, staying near a nine-month as hopes of stabilisation in the Chinese economy helped investors shrug off Wall Street's underperformance that followed disappointing bank earnings. European shares are set to pick up, with futures of London and Frankfurt shares rising 0.2 to 0.3 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent, led by gains in China and India. The index had risen to its highest level since July 2018 the previous day after strong export and banking data from China last week eased investors' concerns about the health of the world's second-largest economy. Mainland Chinese shares rose 1.7 per cent, partly on brisk home prices data while India's NSE index rose 0.8 per cent to a record high, surpassing its previous peak hit earlier this month. Japan's Nikkei edged up 0.2 per cent. "Recent Chinese data is boosting confidence in the Chinese economy while earnings have not been bad either," said Yukino Yamada, senior strategist at Daiwa Securities. "Indian shares are rising on hopes on the country's elections. In the past they have tended to do well during a six-month period leading up to the election as well as one month after the election," she added. Expectations that Chinese and US trade negotiators would strike a deal soon also underpinned markets. The US-China trade dispute, signs of slowing global corporate earnings and business investment have all put pressure on riskier assets in the past year, so investors have been quick to lap up positive news. Wall Street lost ground on Monday, dragged down as underwhelming bank earnings curbed investor enthusiasm. But while all three major US stock indexes edged lower, the S&P 500 remained within a per cent of its record high. Safe havens such as bonds, which were on the defensive following the recent improvement in investor risk appetite, were given some reprieve. The 10-year US Treasury yield was at 2.548 per cent, edging back from a four-week high of 2.574 per cent reached on Monday. Spot gold was a shade lower at $1,286.21 an ounce and headed for its fourth straight days of losses. Elsewhere in commodities, the recent rally in crude oil prices halted on the prospect of Russia and OPEC boosting production to fight for market share with the United States. US West Texas Intermediate crude futures were down 0.15 per cent at $63.30 per barrel after losing nearly 0.8 per cent the previous day. US crude had scaled a five-month high of $64.79 earlier this month. Oil had rallied on tightening global supplies, as output has fallen in Iran and Venezuela amid signs the United States will further toughen sanctions on those two OPEC producers, and on the threat that renewed fighting could stop production in Libya.

Global Markets: Asia stocks cling to nine-month high on China hopes, Wall Street dented by earnings

The pound jumped and Asian shares rallied on Tuesday after the European Commission agreed to changes in a Brexit deal ahead of a vote in the British parliament on a divorce agreement.

European Commission head Jean-Claude Juncker agreed to additional assurances in an updated Brexit deal with British Prime Minister Theresa May on Monday, but warned UK lawmakers would not get a third chance to endorse it.

Sterling, which had risen ahead of the talks between May and Juncker, extended gains in hopes the changes may be enough to sway rebellious British lawmakers who have threatened to vote down May's plan again on Tuesday.

The pound was up 0.5 per cent, buying $1.3215 and taking its gains over two days to more than 1.5 per cent.

A lower likelihood of crashing out of the EU with no Brexit deal could help to inject some bullish sentiment into equity markets by eliminating one of the three major concerns of global investors, alongside trade and slowing global growth, said Greg McKenna, strategist at McKenna Macro.

"Take Brexit off the table and I think some of the real money flows that appear to have turned up late last week are likely to be there again. So I think it helps change the backdrop a little bit," he said.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 1.08 per cent, with early gains reinforced by a rise in Chinese shares and oil companies, which were buoyed by higher oil prices.

Chinese blue chips rose 1.3 per cent, extending the previous day's 2 per cent gain.

Despite slowing domestic economic growth and uncertainty about the outlook for trade negotiations between China and the United States, Chinese markets have been buoyed this year by investors' expectations of more stimulus to cushion any downturn.

The CSI300 index has risen more than 25 per cent this year.

But Oliver Jones, market economist at Capital Economics cautioned that the Chinese rally is "built on shaky foundations."

"The surge in China's mainland equity markets since the start of the year looks excessive, even allowing for renewed optimism about stimulus in China and the possibility of a US-China trade deal," he said in a note.

"Since we are anticipating more economic weakness in both China and the rest of the world regardless, we suspect that the Shanghai and Shenzhen markets will fall back sharply later in the year."

Australian shares were up 0.4per cent, while Japan's Nikkei stock index jumped 1.9 per cent, helped by a weaker yen.

The amended Brexit deal gave a further boost to investors' appetite for riskier assets, after global equity indexes climbed overnight on gains in technology stocks and expectations of more stimulus from China.

US shares rebounded from a week-long losing streak, with news that US chip supplier Nvidia Corp has agreed to buy Israeli chip designer Mellanox Technologies Ltd for $6.8 billion helping to boost tech shares.

A nearly 7 per cent gain in Nvidia shares helped to propel the Nasdaq Composite 2.02 per cent&nbsp;higher, to 7,558.06 points.

The Dow Jones Industrial Average rose 0.79 per cent, with gains tempered by a 5.3 per cent drop in Boeing shares after some airlines grounded the company's new 737 MAX 8 passenger jet following a second deadly crash of the airliner in five months.

The S&amp;P 500 gained 1.47 per cent to 2,783.3.

RISING YIELDS

The market's turn toward riskier assets lifted yields on US Treasury bonds, with benchmark 10-year Treasury notes at 2.6645 percent compared with its U.S. close of 2.641 per cent on Monday.

The two-year yield was at 2.4998 per cent compared with a US close of 2.477 per cent.

The dollar index, which measures the greenback against a basket of rivals, shed 0.2 per cent to 97.036. But rising risk appetite weighed on the safe-haven yen, pushing the dollar up 0.16 per cent to 111.37.

The euro was up 0.13 per cent on the day at $1.1262.

In commodity markets, oil prices rose on a combination of strong demand and supply cuts by the Organization of the Petrolum Exporting Countries (OPEC).

A political and economic crisis in OPEC-member Venezuela is also seen as lifting crude prices.

Venezuela's opposition-run congress on Monday declared a "state of alarm" over a five-day power blackout that has crippled the country's oil exports and left millions of citizens scrambling to find food and water.

US crude was up 0.5 per cent at $57.08 a barrel and Brent crude was 0.4 per cent higher at $66.84.

Spot gold jumped 0.2 per cent to $1,296.45 per ounce.

The pound jumped and Asian shares rallied on Tuesday after the European Commission agreed to changes in a Brexit deal ahead of a vote in the British parliament on a divorce agreement.

The pound jumped and Asian shares rallied on Tuesday after the European Commission agreed to changes in a Brexit deal ahead of a vote in the British parliament on a divorce agreement. European Commission head Jean-Claude Juncker agreed to additional assurances in an updated Brexit deal with British Prime Minister Theresa May on Monday, but warned UK lawmakers would not get a third chance to endorse it. Sterling, which had risen ahead of the talks between May and Juncker, extended gains in hopes the changes may be enough to sway rebellious British lawmakers who have threatened to vote down May's plan again on Tuesday. The pound was up 0.5 per cent, buying $1.3215 and taking its gains over two days to more than 1.5 per cent. A lower likelihood of crashing out of the EU with no Brexit deal could help to inject some bullish sentiment into equity markets by eliminating one of the three major concerns of global investors, alongside trade and slowing global growth, said Greg McKenna, strategist at McKenna Macro. "Take Brexit off the table and I think some of the real money flows that appear to have turned up late last week are likely to be there again. So I think it helps change the backdrop a little bit," he said. MSCI's broadest index of Asia-Pacific shares outside Japan was up 1.08 per cent, with early gains reinforced by a rise in Chinese shares and oil companies, which were buoyed by higher oil prices. Chinese blue chips rose 1.3 per cent, extending the previous day's 2 per cent gain. Despite slowing domestic economic growth and uncertainty about the outlook for trade negotiations between China and the United States, Chinese markets have been buoyed this year by investors' expectations of more stimulus to cushion any downturn. The CSI300 index has risen more than 25 per cent this year. But Oliver Jones, market economist at Capital Economics cautioned that the Chinese rally is "built on shaky foundations." "The surge in China's mainland equity markets since the start of the year looks excessive, even allowing for renewed optimism about stimulus in China and the possibility of a US-China trade deal," he said in a note. "Since we are anticipating more economic weakness in both China and the rest of the world regardless, we suspect that the Shanghai and Shenzhen markets will fall back sharply later in the year." Australian shares were up 0.4per cent, while Japan's Nikkei stock index jumped 1.9 per cent, helped by a weaker yen. The amended Brexit deal gave a further boost to investors' appetite for riskier assets, after global equity indexes climbed overnight on gains in technology stocks and expectations of more stimulus from China. US shares rebounded from a week-long losing streak, with news that US chip supplier Nvidia Corp has agreed to buy Israeli chip designer Mellanox Technologies Ltd for $6.8 billion helping to boost tech shares. A nearly 7 per cent gain in Nvidia shares helped to propel the Nasdaq Composite 2.02 per cent higher, to 7,558.06 points. The Dow Jones Industrial Average rose 0.79 per cent, with gains tempered by a 5.3 per cent drop in Boeing shares after some airlines grounded the company's new 737 MAX 8 passenger jet following a second deadly crash of the airliner in five months. The S&P 500 gained 1.47 per cent to 2,783.3. RISING YIELDS The market's turn toward riskier assets lifted yields on US Treasury bonds, with benchmark 10-year Treasury notes at 2.6645 percent compared with its U.S. close of 2.641 per cent on Monday. The two-year yield was at 2.4998 per cent compared with a US close of 2.477 per cent. The dollar index, which measures the greenback against a basket of rivals, shed 0.2 per cent to 97.036. But rising risk appetite weighed on the safe-haven yen, pushing the dollar up 0.16 per cent to 111.37. The euro was up 0.13 per cent on the day at $1.1262. In commodity markets, oil prices rose on a combination of strong demand and supply cuts by the Organization of the Petrolum Exporting Countries (OPEC). A political and economic crisis in OPEC-member Venezuela is also seen as lifting crude prices. Venezuela's opposition-run congress on Monday declared a "state of alarm" over a five-day power blackout that has crippled the country's oil exports and left millions of citizens scrambling to find food and water. US crude was up 0.5 per cent at $57.08 a barrel and Brent crude was 0.4 per cent higher at $66.84. Spot gold jumped 0.2 per cent to $1,296.45 per ounce.

Pound jumps, Asian shares rise after changes to Brexit deal

Asian stocks retreated Friday as concern grew over reports of an impasse in China-US trade talks in Beijing, and Wall Street was hit by weak US retail sales.

Bourses across the region posted losses as investors shrugged off news that US President Donald Trump would sign a massive spending bill to avert a government shutdown, while Chinese inflation eased more than expected.

Top US economic officials were due to meet President Xi Jinping in the Chinese capital as both sides aim to conclude trade talks with enough goodwill to extend a truce in their tariff war.

Trump's economic advisor Larry Kudlow said the talks were "covering all the ground" and "the vibe is good" though no decision had been taken on extending a March 1 deadline for tariff hikes.

But multiple reports said there had been little progress on thorny issues such as US demands that China cracks down on forced technology transfers and reduce subsidies that favour domestic companies.

The Wall Street Journal said China had offered to boost imports of US goods with promises of major purchases of semiconductors and other items, but that officials "remained deadlocked on a number of issues".

And Bloomberg News reported that the two sides had "failed to narrow the gap around structural reforms to China's economy that the US has requested".

Both cited anonymous sources.

Failure to resolve the dispute would initiate a sharp hike in US tariffs on $200 billion of Chinese goods which could slow the global economy.

Hong Kong shed 1.5 per cent, Tokyo dropped 1.2 per cent and Shanghai fell 0.7 per cent.

Seoul, Taipei, Wellington and Jakarta all posted losses too, though Sydney edged up.

Factory and consumer price inflation in China rose at a slower rate than expected in January, official data showed Friday.

The weak producer prices were "a concern since these are highly correlated with profit growth in the industry", Julian Evans-Pritchard of Capital Economics said in a research note.

Wall Street fell earlier after the Commerce Department reported US retail sales had dropped 1.2 per cent in December from the previous month, marking the largest month-to-month decrease since September 2009.

The report suggested American consumers had held back during a peak holiday shopping season that coincided with a plunge in the stock market.

The US Congress passed a spending bill to avert a government shutdown, and Trump has signalled he will sign it before a midnight Friday deadline.

But the positive news was offset as the American president alarmed lawmakers with a plan to declare a national emergency to fund his controversial wall on the Mexico border.

Meanwhile, oil continued to climb due to falling global output after the Organization of the Petroleum Exporting Countries cut output.

Asian stocks retreated Friday as concern grew over reports of an impasse in China-US trade talks in Beijing, and Wall Street was hit by weak US retail sales. Bourses across the region posted losses as investors shrugged off news that US President Donald Trump would sign a massive spending bill to avert a government shutdown, while Chinese inflation eased more than expected.

Asian stocks retreated Friday as concern grew over reports of an impasse in China-US trade talks in Beijing, and Wall Street was hit by weak US retail sales. Bourses across the region posted losses as investors shrugged off news that US President Donald Trump would sign a massive spending bill to avert a government shutdown, while Chinese inflation eased more than expected. Top US economic officials were due to meet President Xi Jinping in the Chinese capital as both sides aim to conclude trade talks with enough goodwill to extend a truce in their tariff war. Trump's economic advisor Larry Kudlow said the talks were "covering all the ground" and "the vibe is good" though no decision had been taken on extending a March 1 deadline for tariff hikes. But multiple reports said there had been little progress on thorny issues such as US demands that China cracks down on forced technology transfers and reduce subsidies that favour domestic companies. The Wall Street Journal said China had offered to boost imports of US goods with promises of major purchases of semiconductors and other items, but that officials "remained deadlocked on a number of issues". And Bloomberg News reported that the two sides had "failed to narrow the gap around structural reforms to China's economy that the US has requested". Both cited anonymous sources. Failure to resolve the dispute would initiate a sharp hike in US tariffs on $200 billion of Chinese goods which could slow the global economy. Hong Kong shed 1.5 per cent, Tokyo dropped 1.2 per cent and Shanghai fell 0.7 per cent. Seoul, Taipei, Wellington and Jakarta all posted losses too, though Sydney edged up. Factory and consumer price inflation in China rose at a slower rate than expected in January, official data showed Friday. The weak producer prices were "a concern since these are highly correlated with profit growth in the industry", Julian Evans-Pritchard of Capital Economics said in a research note. Wall Street fell earlier after the Commerce Department reported US retail sales had dropped 1.2 per cent in December from the previous month, marking the largest month-to-month decrease since September 2009. The report suggested American consumers had held back during a peak holiday shopping season that coincided with a plunge in the stock market. The US Congress passed a spending bill to avert a government shutdown, and Trump has signalled he will sign it before a midnight Friday deadline. But the positive news was offset as the American president alarmed lawmakers with a plan to declare a national emergency to fund his controversial wall on the Mexico border. Meanwhile, oil continued to climb due to falling global output after the Organization of the Petroleum Exporting Countries cut output.

Asian shares drop on trade talks fears, weak US retail

Asian stocks pulled ahead and safe-haven government bonds came under further pressure on Wednesday on optimism the United States and China might be able to hammer out a deal to resolve their nearly year-long trade dispute.&nbsp;

MSCI`s broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent.

South Korea`s KOSPI gained 0.5 per cent and Japan`s Nikkei climbed 1 per cent.

Asia took its cue from Wall Street, where the Dow and Nasdaq each rallied about 1.5 per cent overnight on optimism over U.S.-China trade negotiations and a tentative US congressional spending deal to avert another partial government shutdown.&nbsp;

US President Donald Trump said on Tuesday that he could see letting the March 1 deadline for reaching a trade agreement with China slide a little if the two sides were close to a complete deal.

Officials in Washington and Beijing had expressed hopes that a new round of talks which began this week would bring them nearer to easing their seven-month trade war.

"We are currently seeing negative sentiment which had built up over trade concerns and US fiscal issues being unwound," said Soichiro Monji, senior economist at Daiwa SB Investments in Tokyo.

"For risk assets to move purely on optimism, the US-China trade row will need to see some kind of a closure in March. A more permanent solution to avoid a US government shutdown is also necessary. It has to be remembered that we are not there yet."

US congressional negotiators cobbled together a tentative bipartisan border security deal late on Monday to avert another partial government shutdown. However, Trump on Tuesday expressed displeasure with the agreement and said he had yet to decide whether to support it.

With risk aversion ebbing for the time being, safe-haven government bonds were sold and their yields rose. The 10-year US Treasury note yield extended an overnight rise and edged up to a near one-week high of 2.694 per cent.

The dollar was on the defensive as investors shifted their money to riskier assets amid the US-China trade-talk hopes.&nbsp;

The dollar index stood at 96.701 after its eight-day winning run came to an end overnight to push it away from a two-month peak.

The euro was a shade higher at $1.1333 having gained 0.5 per cent the previous day, when it bounced from a three-month low of $1.1258. 
The dollar was steady at 110.53 yen.

In commodities, US crude oil futures were up 0.73 per cent at $53.49 per barrel after rallying 1.3 per cent on Tuesday.

Oil prices surged on Tuesday after OPEC figures showed it cut production sharply in January, and as lead member Saudi Arabia said it would reduce its output in March by an additional 500,000 barrels.&nbsp;

Asian stocks pulled ahead and safe-haven government bonds came under further pressure on Wednesday on optimism the United States and China might be able to hammer out a deal to resolve their nearly year-long trade dispute.

Asian stocks pulled ahead and safe-haven government bonds came under further pressure on Wednesday on optimism the United States and China might be able to hammer out a deal to resolve their nearly year-long trade dispute. MSCI`s broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent. South Korea`s KOSPI gained 0.5 per cent and Japan`s Nikkei climbed 1 per cent. Asia took its cue from Wall Street, where the Dow and Nasdaq each rallied about 1.5 per cent overnight on optimism over U.S.-China trade negotiations and a tentative US congressional spending deal to avert another partial government shutdown. US President Donald Trump said on Tuesday that he could see letting the March 1 deadline for reaching a trade agreement with China slide a little if the two sides were close to a complete deal. Officials in Washington and Beijing had expressed hopes that a new round of talks which began this week would bring them nearer to easing their seven-month trade war. "We are currently seeing negative sentiment which had built up over trade concerns and US fiscal issues being unwound," said Soichiro Monji, senior economist at Daiwa SB Investments in Tokyo. "For risk assets to move purely on optimism, the US-China trade row will need to see some kind of a closure in March. A more permanent solution to avoid a US government shutdown is also necessary. It has to be remembered that we are not there yet." US congressional negotiators cobbled together a tentative bipartisan border security deal late on Monday to avert another partial government shutdown. However, Trump on Tuesday expressed displeasure with the agreement and said he had yet to decide whether to support it. With risk aversion ebbing for the time being, safe-haven government bonds were sold and their yields rose. The 10-year US Treasury note yield extended an overnight rise and edged up to a near one-week high of 2.694 per cent. The dollar was on the defensive as investors shifted their money to riskier assets amid the US-China trade-talk hopes. The dollar index stood at 96.701 after its eight-day winning run came to an end overnight to push it away from a two-month peak. The euro was a shade higher at $1.1333 having gained 0.5 per cent the previous day, when it bounced from a three-month low of $1.1258. The dollar was steady at 110.53 yen. In commodities, US crude oil futures were up 0.73 per cent at $53.49 per barrel after rallying 1.3 per cent on Tuesday. Oil prices surged on Tuesday after OPEC figures showed it cut production sharply in January, and as lead member Saudi Arabia said it would reduce its output in March by an additional 500,000 barrels.

Asian stocks lifted by US-China trade talk hopes

Asian shares barely budged on Tuesday with investors looking to a new round of Sino-US trade talks as the world's two largest economies try to resolve a tariff dispute that has put a dent on global growth and corporate earnings.

MSCI's broadest index of Asia-Pacific shares outside Japan was unchanged in early trade. Japan's Nikkei was up 1.1 per cent after a market holiday on Monday.

US and Chinese officials expressed hopes on Monday that a new round of talks would bring them closer to easing their months-long trade war.

Beijing and Washington are trying to hammer out a deal before a March 1 deadline, without which US&nbsp;tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 per cent from 10 per cent.

"There will be no winner in a trade war. So at some point, they will likely strike a deal," said Mutsumi Kagawa, chief global strategist at Rakuten Securities.

The trade dispute has already started to impact global growth, hitting businesses confidence, factory activity and disrupting supply chains. The worry is that a protracted Sino-US tariff row could severely hurt corporate earnings globally.

Analysts are now expecting US corporate earnings for the current quarter to drop 0.2 per cent from last year, which would mark the first contraction since the second quarter of 2016.

In the currency market, the dollar held firm, has gained for eight straight sessions against a basket of six major currencies until Monday, its longest rally in two years.

Although the Federal Reserve's dovish turn dented the dollar earlier this year, some analysts noted the US currency still has the highest yield among major peers and that the Fed continues to shrink its balance sheet.

"We see the dollar's strength essentially stemming from the Fed's balance sheet reduction," said Makoto Noji, chief currency and foreign bond strategist at SMBC Nikko Securities.

Growing evidence of a loss of momentum in the global economy has also lifted the US currency, most recently led by the European Commission's downgrade of growth in Europe, making the dollar a better investment option by default.

The dollar's index rose to its highest levels in almost three months to 971.123 on Monday. It last stood at 97.062.

In contrast, the euro dropped to as low as $1.1267 on Monday, its weakest in 2-1/2 months, and last stood at $1.1278.

The dollar popped up to a six-week high of 110.51 yen.

While the dollar drew support from the relative strength of the US economy, its near-term direction hinges on the congressional negotiation on government spending.

A Democratic Senator said on Monday negotiators were working into the night in hopes of striking a deal on funding border security programs through September 30 and averting another round of federal agency shutdowns.

The talks resumed on Monday after having broken down over the weekend.

Oil prices ticked up slightly after falls on Monday as traders weigh support from OPEC-led supply restraint and a slowdown in the global economy.

US crude futures traded at $52.55 per barrel, up 0.27 percent.

Asian shares barely budged on Tuesday with investors looking to a new round of Sino-US trade talks as the world's two largest economies try to resolve a tariff dispute that has put a dent on global growth and corporate earnings.

Asian shares barely budged on Tuesday with investors looking to a new round of Sino-US trade talks as the world's two largest economies try to resolve a tariff dispute that has put a dent on global growth and corporate earnings. MSCI's broadest index of Asia-Pacific shares outside Japan was unchanged in early trade. Japan's Nikkei was up 1.1 per cent after a market holiday on Monday. US and Chinese officials expressed hopes on Monday that a new round of talks would bring them closer to easing their months-long trade war. Beijing and Washington are trying to hammer out a deal before a March 1 deadline, without which US tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 per cent from 10 per cent. "There will be no winner in a trade war. So at some point, they will likely strike a deal," said Mutsumi Kagawa, chief global strategist at Rakuten Securities. The trade dispute has already started to impact global growth, hitting businesses confidence, factory activity and disrupting supply chains. The worry is that a protracted Sino-US tariff row could severely hurt corporate earnings globally. Analysts are now expecting US corporate earnings for the current quarter to drop 0.2 per cent from last year, which would mark the first contraction since the second quarter of 2016. In the currency market, the dollar held firm, has gained for eight straight sessions against a basket of six major currencies until Monday, its longest rally in two years. Although the Federal Reserve's dovish turn dented the dollar earlier this year, some analysts noted the US currency still has the highest yield among major peers and that the Fed continues to shrink its balance sheet. "We see the dollar's strength essentially stemming from the Fed's balance sheet reduction," said Makoto Noji, chief currency and foreign bond strategist at SMBC Nikko Securities. Growing evidence of a loss of momentum in the global economy has also lifted the US currency, most recently led by the European Commission's downgrade of growth in Europe, making the dollar a better investment option by default. The dollar's index rose to its highest levels in almost three months to 971.123 on Monday. It last stood at 97.062. In contrast, the euro dropped to as low as $1.1267 on Monday, its weakest in 2-1/2 months, and last stood at $1.1278. The dollar popped up to a six-week high of 110.51 yen. While the dollar drew support from the relative strength of the US economy, its near-term direction hinges on the congressional negotiation on government spending. A Democratic Senator said on Monday negotiators were working into the night in hopes of striking a deal on funding border security programs through September 30 and averting another round of federal agency shutdowns. The talks resumed on Monday after having broken down over the weekend. Oil prices ticked up slightly after falls on Monday as traders weigh support from OPEC-led supply restraint and a slowdown in the global economy. US crude futures traded at $52.55 per barrel, up 0.27 percent.

Asian stocks subdued, focus on new round of Sino-US talks

Asian stocks rose across the board on Friday, buoyed by gains in US technology shares while investors awaited several key events next week including US-China trade talks.

The euro struggled near a six-week low versus the dollar following dovish-sounding comments from European Central Bank President Mario Draghi, who expressed concerns about the eurozone economy.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.95 per cent to scale its highest since December 4.

The index was headed for a gain of 0.6 per cent this week, with strong corporate earnings helping somewhat to counter growing concerns over slowing global economic growth.

The Shanghai Composite Index rose 0.6 per cent.

Tech-heavy South Korean shares added 0.9 per cent. Australian stocks climbed 0.8 per cent, lifted by higher prices of commodities such as iron ore and crude oil.

Japan's Nikkei advanced 1.4 per cent with technology companies boosted by a surge in their US peers.

"Investors who were already excited about the U.S. chip sector's earnings the day before got even more reassured after they saw how their stocks moved," said Shogo Maekawa, a global market strategist at JPMorgan Asset Management.

Maekawa added that a recovery in the global cyclical chip sector is taken as a silver-lining amid concerns about a global economic slowdown.

A synchronised global economic slowdown is underway and any escalation in the US-China trade war would trigger a sharper downturn, according to the latest Reuters polls of hundreds of economists from around the world.

"Equities may be drawing some support but the markets are bracing for next week's events," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.

"The US-China trade discussions will provide insight into how talks are progressing, while the British parliamentary voting is a key Brexit event. And there is also the FOMC (Federal Open Market Committee) meeting."

Chinese Vice Premier Liu He will visit the United States on January 30 and 31 for the next round of trade negotiations with Washington.

The two sides are "miles and miles" from resolving trade issues but there is a fair chance they will get a deal, US Commerce Secretary Wilbur Ross said on Thursday.

The British parliament will debate and vote on Prime Minister Theresa May's Brexit "plan B" on January 29, and the US Federal Reserve concludes a two-day policy setting meeting on January 30.

The Nasdaq had risen roughly 0.7 per cent on Thursday thanks to a rally by chipmakers, while the S&amp;P 500 edged higher and the Dow closed nominally lower as anxiety about slowing global growth and the Sino-U.S. trade dispute undercut a spate of strong earnings.

In currency markets, the euro was a shade firmer at $1.1316 but still in close reach of a six-week trough of $1.1289 plumbed overnight. The euro was down 0.4 per cent this week.

The single currency slid after ECB President Draghi acknowledged on Thursday that economic growth in the euro zone was likely to be weaker than earlier expected due to the fall-out from factors ranging from China's slowdown to Brexit.

Germany has dropped its economic growth forecast for 2019 to 1.0 per cent from 1.8 per cent due to slower global economic growth and uncertainty about Britain's exit from the European Union, the Handelsblatt newspaper reported on Thursday.

The ECB had left its policy stance unchanged as expected on Thursday and Draghi's downbeat comments added to speculation that the central bank will hold back on interest rate hikes that some market watchers had expected in October.

The pound was up 0.4 per cent at $1.3109 after brushing a two-month high of $1.3130, lifted after The Sun reported on Thursday that Northern Ireland's Democratic Unionist Party has privately decided to back Prime Minister May's Brexit deal next week if it includes a clear time limit to the Irish backstop.

The dollar nudged up 0.1 per cent to 109.74 yen and on track to end the week little changed.

The benchmark 10-year US Treasury note yield was slightly higher at 2.724 per cent after dropping to a one-week low as concerns over slowing global growth supported safe-haven government debt.

Crude oil extended gains after rallying the previous day as the United States threatened sanctions on Venezuela's crude exports as the country descended further into political and economic turmoil.

US crude oil futures were up 1.3 per cent at $53.82 per barrel after gaining 1 per cent on Thursday.

Asian stocks rose across the board on Friday, buoyed by gains in US technology shares while investors awaited several key events next week including US-China trade talks.

Asian stocks rose across the board on Friday, buoyed by gains in US technology shares while investors awaited several key events next week including US-China trade talks. The euro struggled near a six-week low versus the dollar following dovish-sounding comments from European Central Bank President Mario Draghi, who expressed concerns about the eurozone economy. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.95 per cent to scale its highest since December 4. The index was headed for a gain of 0.6 per cent this week, with strong corporate earnings helping somewhat to counter growing concerns over slowing global economic growth. The Shanghai Composite Index rose 0.6 per cent. Tech-heavy South Korean shares added 0.9 per cent. Australian stocks climbed 0.8 per cent, lifted by higher prices of commodities such as iron ore and crude oil. Japan's Nikkei advanced 1.4 per cent with technology companies boosted by a surge in their US peers. "Investors who were already excited about the U.S. chip sector's earnings the day before got even more reassured after they saw how their stocks moved," said Shogo Maekawa, a global market strategist at JPMorgan Asset Management. Maekawa added that a recovery in the global cyclical chip sector is taken as a silver-lining amid concerns about a global economic slowdown. A synchronised global economic slowdown is underway and any escalation in the US-China trade war would trigger a sharper downturn, according to the latest Reuters polls of hundreds of economists from around the world. "Equities may be drawing some support but the markets are bracing for next week's events," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management. "The US-China trade discussions will provide insight into how talks are progressing, while the British parliamentary voting is a key Brexit event. And there is also the FOMC (Federal Open Market Committee) meeting." Chinese Vice Premier Liu He will visit the United States on January 30 and 31 for the next round of trade negotiations with Washington. The two sides are "miles and miles" from resolving trade issues but there is a fair chance they will get a deal, US Commerce Secretary Wilbur Ross said on Thursday. The British parliament will debate and vote on Prime Minister Theresa May's Brexit "plan B" on January 29, and the US Federal Reserve concludes a two-day policy setting meeting on January 30. The Nasdaq had risen roughly 0.7 per cent on Thursday thanks to a rally by chipmakers, while the S&P 500 edged higher and the Dow closed nominally lower as anxiety about slowing global growth and the Sino-U.S. trade dispute undercut a spate of strong earnings. In currency markets, the euro was a shade firmer at $1.1316 but still in close reach of a six-week trough of $1.1289 plumbed overnight. The euro was down 0.4 per cent this week. The single currency slid after ECB President Draghi acknowledged on Thursday that economic growth in the euro zone was likely to be weaker than earlier expected due to the fall-out from factors ranging from China's slowdown to Brexit. Germany has dropped its economic growth forecast for 2019 to 1.0 per cent from 1.8 per cent due to slower global economic growth and uncertainty about Britain's exit from the European Union, the Handelsblatt newspaper reported on Thursday. The ECB had left its policy stance unchanged as expected on Thursday and Draghi's downbeat comments added to speculation that the central bank will hold back on interest rate hikes that some market watchers had expected in October. The pound was up 0.4 per cent at $1.3109 after brushing a two-month high of $1.3130, lifted after The Sun reported on Thursday that Northern Ireland's Democratic Unionist Party has privately decided to back Prime Minister May's Brexit deal next week if it includes a clear time limit to the Irish backstop. The dollar nudged up 0.1 per cent to 109.74 yen and on track to end the week little changed. The benchmark 10-year US Treasury note yield was slightly higher at 2.724 per cent after dropping to a one-week low as concerns over slowing global growth supported safe-haven government debt. Crude oil extended gains after rallying the previous day as the United States threatened sanctions on Venezuela's crude exports as the country descended further into political and economic turmoil. US crude oil futures were up 1.3 per cent at $53.82 per barrel after gaining 1 per cent on Thursday.

Asia stocks firm, euro sags after dovish ECB

<a href="http://www.wionews.com/business-economy/asia-stocks-shaken-by-plunge-in-crude-oil-growth-worries-177178">Asian stocks</a> edged up on Thursday as a steep slide in crude oil prices which had chilled investor sentiment slowed, while the pound and euro were supported after British Prime Minister Theresa May gained cabinet support for a Brexit deal.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.15 per cent. The index had declined 0.4 per cent the previous day as plunging oil prices heightened anxiety about the outlook for broad demand and global growth.

Australian stocks rose 0.15 per cent while Japan's Nikkei shed 0.5 per cent.

All the same, stock market gains in Asia were limited after Wall Street extended their recent decline.

The S&amp;P 500 fell for a fifth straight day overnight as financial stocks were hit by fears that banking industry regulations would tighten once the Democratic Party takes control of the House of Representatives.

US equities were also pressured by lingering concerns that earnings growth might be peaking, intensifying trade tensions and a slowing global economy - factors that had triggered a rout in riskier assets in October.

"If US stocks are to bounce back, economic indicators will be key," said Junichi Ishikawa, senior forex strategist at IG Securities in Tokyo.

"Immediate focus will be on today's US retail sales data, which will provide a view of how private consumption -the main component of economic growth- is faring."

US retail sales for October will be released at 1330 GMT.

In currencies, the pound and euro kept gains made after British Prime Minister May's cabinet gave backing on her Brexit deal. May now has to gain the support of parliament, though it is unclear whether she has enough votes to clinch approval.

The pound was a shade higher at $1.12987 after peaking at $1.3072 on Wednesday, when it tacked on 0.1 per cent.

The euro was little changed at $1.1311 having advanced 0.2 per cent overnight.

The single currency's upside was limited by uncertainty on how European Union officials would react to Italy's latest fiscal proposal after they rejected a version of it last month for violation of certain EU rules.

Italy on Wednesday re-submitted its draft 2019 budget to the European Commission with the same growth and deficit assumptions as a draft rejected for breaking European Union rules, stepping up its showdown with the EU over its fiscal policy.

The dollar index against a basket of six major currencies was 0.1 per cent lower at 97.213, nudged down by the firmer pound and euro.

US crude was a shade lower at $55.92 per barrel after gaining 1 per cent overnight, snapping a 12 day losing run on growing prospects that the Organization of the Petroleum Exporting Countries and allied producers would cut output.&nbsp;

With global demand concerns also causing the steepest one-day loss for oil in more than three years on Tuesday, the market reversed course after Reuters reported that OPEC and its partners were discussing a proposal to cut output by up to 1.4 million barrels per day (bpd), more than officials had mentioned previously.

Asian stocks edged up on Thursday as a steep slide in crude oil prices which had chilled investor sentiment slowed, while the pound and euro were supported after British Prime Minister Theresa May gained cabinet support for a Brexit deal.

Asian stocks edged up on Thursday as a steep slide in crude oil prices which had chilled investor sentiment slowed, while the pound and euro were supported after British Prime Minister Theresa May gained cabinet support for a Brexit deal. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.15 per cent. The index had declined 0.4 per cent the previous day as plunging oil prices heightened anxiety about the outlook for broad demand and global growth. Australian stocks rose 0.15 per cent while Japan's Nikkei shed 0.5 per cent. All the same, stock market gains in Asia were limited after Wall Street extended their recent decline. The S&P 500 fell for a fifth straight day overnight as financial stocks were hit by fears that banking industry regulations would tighten once the Democratic Party takes control of the House of Representatives. US equities were also pressured by lingering concerns that earnings growth might be peaking, intensifying trade tensions and a slowing global economy - factors that had triggered a rout in riskier assets in October. "If US stocks are to bounce back, economic indicators will be key," said Junichi Ishikawa, senior forex strategist at IG Securities in Tokyo. "Immediate focus will be on today's US retail sales data, which will provide a view of how private consumption -the main component of economic growth- is faring." US retail sales for October will be released at 1330 GMT. In currencies, the pound and euro kept gains made after British Prime Minister May's cabinet gave backing on her Brexit deal. May now has to gain the support of parliament, though it is unclear whether she has enough votes to clinch approval. The pound was a shade higher at $1.12987 after peaking at $1.3072 on Wednesday, when it tacked on 0.1 per cent. The euro was little changed at $1.1311 having advanced 0.2 per cent overnight. The single currency's upside was limited by uncertainty on how European Union officials would react to Italy's latest fiscal proposal after they rejected a version of it last month for violation of certain EU rules. Italy on Wednesday re-submitted its draft 2019 budget to the European Commission with the same growth and deficit assumptions as a draft rejected for breaking European Union rules, stepping up its showdown with the EU over its fiscal policy. The dollar index against a basket of six major currencies was 0.1 per cent lower at 97.213, nudged down by the firmer pound and euro. US crude was a shade lower at $55.92 per barrel after gaining 1 per cent overnight, snapping a 12 day losing run on growing prospects that the Organization of the Petroleum Exporting Countries and allied producers would cut output. With global demand concerns also causing the steepest one-day loss for oil in more than three years on Tuesday, the market reversed course after Reuters reported that OPEC and its partners were discussing a proposal to cut output by up to 1.4 million barrels per day (bpd), more than officials had mentioned previously.

Asia edges up as oil slide slows; pound, euro firm on Brexit optimism

Asian stocks edged up on Wednesday as a late round of buying helped Wall Street indexes pare most of their earlier panic-driven losses, although crude oil struggled near two-month lows after Saudi Arabia flagged possible supply increases.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent following a decline of more than 2 per cent the previous day.

Global stocks suffered earlier this week on worries about US earnings, Italian government finances, US trade tensions and mounting pressure on Saudi Arabia over the death of dissident journalist Jamal Khashoggi.

South Korea's KOSPI added 0.5 per cent and Japan's Nikkei climbed 0.25 per cent.

Wall Street's three major indexes slumped early on Tuesday but ended well off the day's lows as investors snapped up beaten-down shares late in the session.&nbsp;

"Broader market sentiment remains fragile, but as last night's resilience by Wall Street shows, sentiment has not broken down completely," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.

"We may see more bouts of 'mini panic' until the U.S. midterm elections, but the bottom line is that the US economy is in good shape and that should prevent sentiment from breaking down."

The dollar flagged against the yen, which is often sought in times of risk aversion. The US currency was at 112.43 yen after dropping 0.35 per cent overnight.

The greenback was also held down on a decline in Treasury yields, as the recent risk aversion drove investors to safe haven government bonds. The 10-year Treasury note yield was at 3.171 per cent after stooping to a three-week low of 3.111 on Tuesday.

The pound was little changed at $1.2986 and near a three-week trough of $1.2937 brushed overnight.

Sterling briefly gained half a per cent against the dollar on Tuesday after a media report that the European Union could offer British Prime Minister Theresa May a UK-wide customs union to clinch a Brexit deal.

The pound's strength was fleeting, however, a sign the market remains unconvinced May can successfully sell any deal to her Conservative party colleagues and get it through parliament.

The euro was steady at $1.1472 after nudging up 0.05 per cent the previous day.

The dollar index against a basket of six major currencies was a shade lower at 95.924 after posting a modest loss the previous day.

In commodities, US crude futures traded at $66.33 per barrel after dropping roughly 4 per cent on Tuesday to a two-month low of $65.74.

Crude slid after Saudi Arabia said it could supply more crude quickly if needed, easing concerns ahead of US sanctions on Iran.&nbsp;

The recent sell-off in global equities has also raised worries about slowing growth curbing demand for crude.

Asian stocks edged up on Wednesday as a late round of buying helped Wall Street indexes pare most of their earlier panic-driven losses, although crude oil struggled near two-month lows after Saudi Arabia flagged possible supply increases.

Asian stocks edged up on Wednesday as a late round of buying helped Wall Street indexes pare most of their earlier panic-driven losses, although crude oil struggled near two-month lows after Saudi Arabia flagged possible supply increases. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent following a decline of more than 2 per cent the previous day. Global stocks suffered earlier this week on worries about US earnings, Italian government finances, US trade tensions and mounting pressure on Saudi Arabia over the death of dissident journalist Jamal Khashoggi. South Korea's KOSPI added 0.5 per cent and Japan's Nikkei climbed 0.25 per cent. Wall Street's three major indexes slumped early on Tuesday but ended well off the day's lows as investors snapped up beaten-down shares late in the session. "Broader market sentiment remains fragile, but as last night's resilience by Wall Street shows, sentiment has not broken down completely," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo. "We may see more bouts of 'mini panic' until the U.S. midterm elections, but the bottom line is that the US economy is in good shape and that should prevent sentiment from breaking down." The dollar flagged against the yen, which is often sought in times of risk aversion. The US currency was at 112.43 yen after dropping 0.35 per cent overnight. The greenback was also held down on a decline in Treasury yields, as the recent risk aversion drove investors to safe haven government bonds. The 10-year Treasury note yield was at 3.171 per cent after stooping to a three-week low of 3.111 on Tuesday. The pound was little changed at $1.2986 and near a three-week trough of $1.2937 brushed overnight. Sterling briefly gained half a per cent against the dollar on Tuesday after a media report that the European Union could offer British Prime Minister Theresa May a UK-wide customs union to clinch a Brexit deal. The pound's strength was fleeting, however, a sign the market remains unconvinced May can successfully sell any deal to her Conservative party colleagues and get it through parliament. The euro was steady at $1.1472 after nudging up 0.05 per cent the previous day. The dollar index against a basket of six major currencies was a shade lower at 95.924 after posting a modest loss the previous day. In commodities, US crude futures traded at $66.33 per barrel after dropping roughly 4 per cent on Tuesday to a two-month low of $65.74. Crude slid after Saudi Arabia said it could supply more crude quickly if needed, easing concerns ahead of US sanctions on Iran. The recent sell-off in global equities has also raised worries about slowing growth curbing demand for crude.

Asia stocks edge up as Wall Street shows resilience, oil near two-month lows

Asian shares fell on Tuesday as earnings season nerves in the US dented Wall Street, while a cocktail of negative drivers from Saudi Arabia's diplomatic isolation to concerns over Italy's budget and Brexit talks depressed sentiment.

Selling in the region erased gains made in the previous two sessions' rally, which were led by China stimulus hopes, with the MSCI's broadest index of Asia-Pacific shares outside Japan dropping 1.3 per cent.

South Korea's Kospi fell as much as 2.5 per cent and was on course to hit a 1-1/2-year low. In Japan, the Nikkei fell 2.3 per cent.

US stock futures dropped 0.8 per cent in early Tuesday trade. On Monday the S&amp;P 500 lost 0.43 per cent as investors kept a wary eye on earnings amid global growth worries. Enthusiasm over some of the upbeat results was also tempered by the growing political uncertainty around the world.

"In short, the world seems to be getting into chaos," said Akira Takei, bond fund manager at Asset Management One.

US President Donald Trump said on Monday he was not satisfied with what he had heard from Saudi Arabia about the killing of journalist Jamal Khashoggi at its consulate in Turkey.

Trump has expressed reluctance to punish the Saudis economically. But while Saudi Arabia has sought to shield its powerful crown prince from the killing, many officials have cast doubt on Riyadh's narrative.

Several countries, including Germany, Britain, France and Turkey, have pressed Saudi Arabia to provide all the facts.

An immediate market focus is on Turkish President Tayyip Erdogan, who said he will release information about the investigation in a speech on Tuesday.

Any signs of instability in Saudi Arabia, a major oil producer as well as a big investor in financial markets, could have wide-ranging repercussions.

"I would think this issue could drag on for some time," said Asset Management One's Takei.

In Europe, Italy told the European Commission on Monday it would stick to its contested 2019 budget plans in defiance of EU fiscal rules.

The European Commision will decide on its response on Tuesday.

The euro traded at $1.1466, having lost 0.44 per cent the previous day to edge near its October&nbsp;9tth low of $1.14325, its lowest level since mid-August.

Although Italian bond prices rose on relief after Moody's did not slap on a negative outlook as the market had feared, European stock markets were less enthused.

France's CAC closed at the lowest level in more than a year while Italian shares hit 1-1/2-year lows and Spanish shares ended at their weakest level since late 2016.

The British pound stood at $1.2965, hovering just above this month's low of $1.2922 on fears the Irish border issue and disagreements within Britain's ruling Conservatives over Brexit could see Prime Minister Theresa May face a serious leadership challenge.

The yen eased to 112.82 per dollar, touching its lowest levels in about two weeks.

The yuan was little changed but stood near Monday's 21-month low of 6.9445 per dollar in the onshore trade on expectations China will pursue looser monetary policy to cope with pressure from US President Trump on tariffs.

Chinese shares also lost steam after two days of strong gains following guidance from Chinese officials, including Vice Premier Liu He, to major investors to support the sagging stock market.

"Any stimulus by China should be viewed not as a boost but as a cushion against a slowing economy against external headwinds," said analysts at DBS in Singapore.

"This reality was better reflected in the Chinese yuan which continued to trade weaker against the central parity in both the onshore and offshore markets."

Oil prices fell on Tuesday after Saudi Arabia pledged to play a "responsible role" in energy markets, although sentiment remained nervous in the run-up to US&nbsp;sanctions against Iran's crude exports that start next month.

Saudi Arabia has pledged to keep markets supplied despite its increasing isolation over Khashoggi's killing, easing fears Riyadh may use oil production as its diplomatic weapons.

Front-month Brent crude oil futures were at $79.60 a barrel, down 0.3 per cent.

US West Texas Intermediate(WTI) crude futures were at $69.22 a barrel, dropping 0.2 per cent.

Asian shares fell on Tuesday as earnings season nerves in the US dented Wall Street, while a cocktail of negative drivers from Saudi Arabia's diplomatic isolation to concerns over Italy's budget and Brexit talks depressed sentiment.

Asian shares fell on Tuesday as earnings season nerves in the US dented Wall Street, while a cocktail of negative drivers from Saudi Arabia's diplomatic isolation to concerns over Italy's budget and Brexit talks depressed sentiment. Selling in the region erased gains made in the previous two sessions' rally, which were led by China stimulus hopes, with the MSCI's broadest index of Asia-Pacific shares outside Japan dropping 1.3 per cent. South Korea's Kospi fell as much as 2.5 per cent and was on course to hit a 1-1/2-year low. In Japan, the Nikkei fell 2.3 per cent. US stock futures dropped 0.8 per cent in early Tuesday trade. On Monday the S&P 500 lost 0.43 per cent as investors kept a wary eye on earnings amid global growth worries. Enthusiasm over some of the upbeat results was also tempered by the growing political uncertainty around the world. "In short, the world seems to be getting into chaos," said Akira Takei, bond fund manager at Asset Management One. US President Donald Trump said on Monday he was not satisfied with what he had heard from Saudi Arabia about the killing of journalist Jamal Khashoggi at its consulate in Turkey. Trump has expressed reluctance to punish the Saudis economically. But while Saudi Arabia has sought to shield its powerful crown prince from the killing, many officials have cast doubt on Riyadh's narrative. Several countries, including Germany, Britain, France and Turkey, have pressed Saudi Arabia to provide all the facts. An immediate market focus is on Turkish President Tayyip Erdogan, who said he will release information about the investigation in a speech on Tuesday. Any signs of instability in Saudi Arabia, a major oil producer as well as a big investor in financial markets, could have wide-ranging repercussions. "I would think this issue could drag on for some time," said Asset Management One's Takei. In Europe, Italy told the European Commission on Monday it would stick to its contested 2019 budget plans in defiance of EU fiscal rules. The European Commision will decide on its response on Tuesday. The euro traded at $1.1466, having lost 0.44 per cent the previous day to edge near its October 9tth low of $1.14325, its lowest level since mid-August. Although Italian bond prices rose on relief after Moody's did not slap on a negative outlook as the market had feared, European stock markets were less enthused. France's CAC closed at the lowest level in more than a year while Italian shares hit 1-1/2-year lows and Spanish shares ended at their weakest level since late 2016. The British pound stood at $1.2965, hovering just above this month's low of $1.2922 on fears the Irish border issue and disagreements within Britain's ruling Conservatives over Brexit could see Prime Minister Theresa May face a serious leadership challenge. The yen eased to 112.82 per dollar, touching its lowest levels in about two weeks. The yuan was little changed but stood near Monday's 21-month low of 6.9445 per dollar in the onshore trade on expectations China will pursue looser monetary policy to cope with pressure from US President Trump on tariffs. Chinese shares also lost steam after two days of strong gains following guidance from Chinese officials, including Vice Premier Liu He, to major investors to support the sagging stock market. "Any stimulus by China should be viewed not as a boost but as a cushion against a slowing economy against external headwinds," said analysts at DBS in Singapore. "This reality was better reflected in the Chinese yuan which continued to trade weaker against the central parity in both the onshore and offshore markets." Oil prices fell on Tuesday after Saudi Arabia pledged to play a "responsible role" in energy markets, although sentiment remained nervous in the run-up to US sanctions against Iran's crude exports that start next month. Saudi Arabia has pledged to keep markets supplied despite its increasing isolation over Khashoggi's killing, easing fears Riyadh may use oil production as its diplomatic weapons. Front-month Brent crude oil futures were at $79.60 a barrel, down 0.3 per cent. US West Texas Intermediate(WTI) crude futures were at $69.22 a barrel, dropping 0.2 per cent.

Asian stocks fall on Wall Street earnings fear, Khashoggi

Asian shares stumbled in holiday-thinned trading on Monday as China's decision to cancel talks with the United States reinforced fears of a protracted trade war with neither side willing to back down.

<a href="http://www.wionews.com/world/fresh-200-billion-us-tariffs-chinese-goods-take-effect-167350">Also</a><a href="http://www.wionews.com/world/fresh-200-billion-us-tariffs-chinese-goods-take-effect-167350"> Read:&nbsp;Fresh $200 billion US tariffs on Chinese goods take effect</a>

Oil prices jumped after top producers ruled out boosting crude output.

US stock futures were a touch weaker while MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.8 per cent. Hong Kong was the worst performer with its Hang Seng index down 1.3 per cent.

Most of Monday's limited action was in currencies, as share markets in major Asian centres Japan, China and South Korea were closed for a holiday. But with domestic trading in respective countries shut, even forex trading was light.

Investors were squarely focused on the China-US trade war as China added $60 billion of US products to its import tariff list, retaliating against US duties on $200 billion of Chinese goods that came into effect at 0401 GMT Monday.

China also cancelled mid-level trade talks with the United States, as well as a proposed visit to Washington by Vice Premier Liu He originally scheduled for this week, the Wall Street Journal reported.

The United States, meanwhile, does not have a date for further talks.

The intensifying dispute between the world's two biggest economies has spooked financial markets worried about the fallout on global growth.

The Japanese yen, which sees fund inflows during times of crisis, held above a recent two-month trough at 112.6 per dollar while the trade-sensitive Australian dollar slipped from a 3-1/2 week top to $0.7268.

"Both the US and China are digging in, and increasingly the subtext seems to be as much about advancing a trade ideology as it is about rescinding trade tariffs," said John Bilton, head of global multi-asset strategy at JPMorgan Asset Management.

"As a result, both the extent and depth of any economic impact are being recalibrated," Bilton said.

"So while we continue to be constructive on the global economy over the coming quarters, it is hard to see the current surge in US activity morphing into another period of coordinated global growth."

There was some optimism generally about Chinese growth as authorities in Beijing step up policy stimulus to offset the economic impact of the tariffs.

Chinese Premier Li Keqiang said over the weekend China will cut import and export costs for foreign firms as it looks to promote an image of being open for business.

Britain's negotiation with European Union will be another key issue for investors, with risks of a 'no deal' or 'hard Brexit' shooting up again.

Asian shares stumbled in holiday-thinned trading on Monday as China's decision to cancel talks with the United States reinforced fears of a protracted trade war with neither side willing to back down.

Asian shares stumbled in holiday-thinned trading on Monday as China's decision to cancel talks with the United States reinforced fears of a protracted trade war with neither side willing to back down. Also Read: Fresh $200 billion US tariffs on Chinese goods take effect Oil prices jumped after top producers ruled out boosting crude output. US stock futures were a touch weaker while MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.8 per cent. Hong Kong was the worst performer with its Hang Seng index down 1.3 per cent. Most of Monday's limited action was in currencies, as share markets in major Asian centres Japan, China and South Korea were closed for a holiday. But with domestic trading in respective countries shut, even forex trading was light. Investors were squarely focused on the China-US trade war as China added $60 billion of US products to its import tariff list, retaliating against US duties on $200 billion of Chinese goods that came into effect at 0401 GMT Monday. China also cancelled mid-level trade talks with the United States, as well as a proposed visit to Washington by Vice Premier Liu He originally scheduled for this week, the Wall Street Journal reported. The United States, meanwhile, does not have a date for further talks. The intensifying dispute between the world's two biggest economies has spooked financial markets worried about the fallout on global growth. The Japanese yen, which sees fund inflows during times of crisis, held above a recent two-month trough at 112.6 per dollar while the trade-sensitive Australian dollar slipped from a 3-1/2 week top to $0.7268. "Both the US and China are digging in, and increasingly the subtext seems to be as much about advancing a trade ideology as it is about rescinding trade tariffs," said John Bilton, head of global multi-asset strategy at JPMorgan Asset Management. "As a result, both the extent and depth of any economic impact are being recalibrated," Bilton said. "So while we continue to be constructive on the global economy over the coming quarters, it is hard to see the current surge in US activity morphing into another period of coordinated global growth." There was some optimism generally about Chinese growth as authorities in Beijing step up policy stimulus to offset the economic impact of the tariffs. Chinese Premier Li Keqiang said over the weekend China will cut import and export costs for foreign firms as it looks to promote an image of being open for business. Britain's negotiation with European Union will be another key issue for investors, with risks of a 'no deal' or 'hard Brexit' shooting up again.

Asian stocks stumble on China-US trade war

Buoyed by the BJP&#39;s electoral success in Gujarat and Himachal Pradesh, the Sensex on Tuesday rallied 143 points as it moved closer to an all-time high.

Firm Asian stocks on bets that US tax reforms Bill will go through supported the uptrend.

The NSE Nifty wrested control of the crucial 10,400-mark.

In the sectoral space, all indices were up, driven by auto and consumer durables, with gains of up to 1.22 per cent.

The 30-share BSE Sensex advanced 143.22 points, or 0.42 per cent, to 33,744.90. The gauge had rallied 548.64 points in the previous three sessions.

The 50-share NSE Nifty also went up 39.45 points, or 0.37 per cent, to 10,428.20.

Analysts said buying picked up after assembly elections results showed that BJP will return to power for the sixth straight term in Gujarat and topples the Congress to form government in Himachal Pradesh.

Major gainers were Tata Motors, M&amp;M, ICICI Bank, ONGC, Bajaj Auto and Maruti Suzuki, rising up to 1.59 per cent.

Firm Asian stocks on bets that US tax reforms Bill will go through supported the uptrend.

Buoyed by the BJP's electoral success in Gujarat and Himachal Pradesh, the Sensex on Tuesday rallied 143 points as it moved closer to an all-time high. Firm Asian stocks on bets that US tax reforms Bill will go through supported the uptrend. The NSE Nifty wrested control of the crucial 10,400-mark. In the sectoral space, all indices were up, driven by auto and consumer durables, with gains of up to 1.22 per cent. The 30-share BSE Sensex advanced 143.22 points, or 0.42 per cent, to 33,744.90. The gauge had rallied 548.64 points in the previous three sessions. The 50-share NSE Nifty also went up 39.45 points, or 0.37 per cent, to 10,428.20. Analysts said buying picked up after assembly elections results showed that BJP will return to power for the sixth straight term in Gujarat and topples the Congress to form government in Himachal Pradesh. Major gainers were Tata Motors, M&M, ICICI Bank, ONGC, Bajaj Auto and Maruti Suzuki, rising up to 1.59 per cent.

Sensex builds on gains, climbs 143 points as BJP bags Gujarat, Himachal Pradesh

Most Asian markets on Thursday brushed off a Wall Street retreat, with analysts saying a threatened government shut-down by Donald Trump was unlikely, while focus turns to a key central bankers&#39; meeting.

In a firebrand speech to supporters the embattled US president warned he would bring an end to Federal business in a bid to push through his controversial Mexican border wall, while also threatening to tear up a trade agreement with Canada and Mexico.

The outburst fuelled concerns that the nascent administration is struggling to find consensus on Capitol Hill, even with his own Republican party, raising questions about his ability to push through promised tax cuts, deregulation and infrastructure spending.&nbsp;

It also led to a warning from Fitch that it would review its US sovereign rating if the government was shut down.

All three main indexes in New York ended in the red.

However, House Speaker Paul Ryan said there would not be any closure of government, while analysts also pointed out that such a crisis was unlikely and Trump was probably bluffing.

&quot;It&#39;s Congress which will decide on the debt ceiling limit and avoid the shutdown -- not the president,&rdquo; said AxiTrader chief market strategist Greg McKenna.

He was also confident Trump&#39;s economic agenda could be pushed through, adding: &quot;It&#39;s likely the Congress will need to work out what it wants to do on tax cuts. I&#39;m still expecting some progress there in the months ahead.&quot;

Asian markets mostly started in positive territory. Hong Kong rose 0.5 per cent, a third-successive gain as traders returned to work after a typhoon hit the city Wednesday.

Sydney rose 0.2 per cent, Singapore was 0.3 per cent higher and Seoul put on 0.5 per cent, while there were also gains in Taipei and Manila.

However, Tokyo eased 0.1 per cent by the break on the back of a stronger yen, while Shanghai dipped 0.2 per cent.

Attention is now on the Jackson Hole symposium in Wyoming, where the world&#39;s top bankers are gathering, with US Federal Reserve boss Janet Yellen and European Central Bank chief Mario Draghi on the list of priorities to watch.

With the US and eurozone economies both picking up, dealers are hoping for some pointers about the future of monetary policy.

The euro has rallied in recent weeks, hitting a near eight-year low against sterling, with the ECB expected at some point to start winding in its massive stimulus, while another round of upbeat economic data Wednesday ramped up those expectations.

&nbsp;Key figures around 0240 GMT&nbsp;

Tokyo - Nikkei 225: DOWN 0.1 per cent at 19,408.80 (break)

Hong Kong - Hang Seng: UP 0.5 per cent at 27,530.65

Shanghai - Composite: DOWN 0.2 per cent at 3,281.70

Euro/dollar: DOWN at $1.1806 from $1.1813 at 2030 GMT

Pound/euro: DOWN at 1.0835 euros from 1.0869 euros

Pound/dollar: DOWN at $1.2788 from $1.2801

Dollar/yen: UP at 109.20 yen from 108.98 yen

Oil - West Texas Intermediate: DOWN eight cents at $48.33 per barrel

Oil - Brent North Sea: DOWN eight cents at $52.49

New York - Dow: DOWN 0.4 per cent at 21,812.09 (close)

London - FTSE 100: FLAT at 7,382.65 (close)

In a firebrand speech to supporters the embattled US president warned he would bring an end to Federal business in a bid to push through his controversial Mexican border wall

Most Asian markets on Thursday brushed off a Wall Street retreat, with analysts saying a threatened government shut-down by Donald Trump was unlikely, while focus turns to a key central bankers' meeting. In a firebrand speech to supporters the embattled US president warned he would bring an end to Federal business in a bid to push through his controversial Mexican border wall, while also threatening to tear up a trade agreement with Canada and Mexico. The outburst fuelled concerns that the nascent administration is struggling to find consensus on Capitol Hill, even with his own Republican party, raising questions about his ability to push through promised tax cuts, deregulation and infrastructure spending. It also led to a warning from Fitch that it would review its US sovereign rating if the government was shut down. All three main indexes in New York ended in the red. However, House Speaker Paul Ryan said there would not be any closure of government, while analysts also pointed out that such a crisis was unlikely and Trump was probably bluffing. "It's Congress which will decide on the debt ceiling limit and avoid the shutdown -- not the president,” said AxiTrader chief market strategist Greg McKenna. He was also confident Trump's economic agenda could be pushed through, adding: "It's likely the Congress will need to work out what it wants to do on tax cuts. I'm still expecting some progress there in the months ahead." Asian markets mostly started in positive territory. Hong Kong rose 0.5 per cent, a third-successive gain as traders returned to work after a typhoon hit the city Wednesday. Sydney rose 0.2 per cent, Singapore was 0.3 per cent higher and Seoul put on 0.5 per cent, while there were also gains in Taipei and Manila. However, Tokyo eased 0.1 per cent by the break on the back of a stronger yen, while Shanghai dipped 0.2 per cent. Attention is now on the Jackson Hole symposium in Wyoming, where the world's top bankers are gathering, with US Federal Reserve boss Janet Yellen and European Central Bank chief Mario Draghi on the list of priorities to watch. With the US and eurozone economies both picking up, dealers are hoping for some pointers about the future of monetary policy. The euro has rallied in recent weeks, hitting a near eight-year low against sterling, with the ECB expected at some point to start winding in its massive stimulus, while another round of upbeat economic data Wednesday ramped up those expectations. Key figures around 0240 GMT Tokyo - Nikkei 225: DOWN 0.1 per cent at 19,408.80 (break) Hong Kong - Hang Seng: UP 0.5 per cent at 27,530.65 Shanghai - Composite: DOWN 0.2 per cent at 3,281.70 Euro/dollar: DOWN at $1.1806 from $1.1813 at 2030 GMT Pound/euro: DOWN at 1.0835 euros from 1.0869 euros Pound/dollar: DOWN at $1.2788 from $1.2801 Dollar/yen: UP at 109.20 yen from 108.98 yen Oil - West Texas Intermediate: DOWN eight cents at $48.33 per barrel Oil - Brent North Sea: DOWN eight cents at $52.49 New York - Dow: DOWN 0.4 per cent at 21,812.09 (close) London - FTSE 100: FLAT at 7,382.65 (close)

Asian markets brush off Trump threat of Mexico shutdown

Asian stocks edged up to fresh 19-month highs on Thursday, helped by an extended rally on Wall Street and strong US&nbsp;data though the Dollar stepped back after a recent bounce.

MSCI&#39;s broadest index of Asia-Pacific shares outside Japan&nbsp;was up 0.2 per cent, rising to its highest since July 2015. It is up by a tenth so far this year partly underpinned by more optimistic earnings expectations and a gradual unwinding of bearish emerging market bets.

Australian stocks&nbsp;advanced 0.4 per cent in early deals with looming jobs data the key event risk on the day. A strong showing would set the market up for further gains with technical indicators helping.

&quot;The index has now closed above the key technical resistance level at 5,800 which is a bullish sign opening up further gains in the coming months back towards 6,000,&quot; said James Woods, global investment analyst at Rivkin Securities in Sydney.

The Australian employment data is due at 00:30 GMT with market expectations centering around 10,000 jobs being created.

Wall Street pushed further into record-high territory on Wednesday, with the S&amp;P 500 notching a seven-session winning streak, helped by robust economic data and optimism that President Donald Trump will cut corporate taxes. That optimism was not shared in the currency markets with the dollar&#39;s recent bounce running out of steam as investors took profits even as fresh data showed a pick up in inflationary pressures.

US&nbsp;consumer prices recorded their biggest increase in nearly four years in January, backing expectations for the Federal Reserve to raise interest rates at a steady pace over the course of the year.

Fed Chair Janet Yellen, in her second day of economic testimony before Congress, offered no additional insight on the timing of the central bank&#39;s next rate hike after her comments a day earlier had hinted at a fairly hawkish policy stance.

Traders may also be leaning towards a rate increase delayed beyond the Fed&#39;s March meeting, with the futures markets only pricing a 27 per cent chance of a tightening next month.

The Dollar index, which measures the currency against a trade-weighted basket of six major peers, slipped to 101.02. It rallied to a one-month high of 101.76 on Wednesday.

In commodity markets, oil prices softened as record high US&nbsp;crude and gasoline inventories fed concerns about a global glut. US crude&nbsp;was down 0.15 per cent at $53.03 a barrel and Brent was flat at $55.75 a barrel.

(Reuters)

Wall Street pushed further into record-high territory, helped by robust economic data and optimism Trump will cut corporate taxes

Asian stocks edged up to fresh 19-month highs on Thursday, helped by an extended rally on Wall Street and strong US data though the Dollar stepped back after a recent bounce. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 per cent, rising to its highest since July 2015. It is up by a tenth so far this year partly underpinned by more optimistic earnings expectations and a gradual unwinding of bearish emerging market bets. Australian stocks advanced 0.4 per cent in early deals with looming jobs data the key event risk on the day. A strong showing would set the market up for further gains with technical indicators helping. "The index has now closed above the key technical resistance level at 5,800 which is a bullish sign opening up further gains in the coming months back towards 6,000," said James Woods, global investment analyst at Rivkin Securities in Sydney. The Australian employment data is due at 00:30 GMT with market expectations centering around 10,000 jobs being created. Wall Street pushed further into record-high territory on Wednesday, with the S&P 500 notching a seven-session winning streak, helped by robust economic data and optimism that President Donald Trump will cut corporate taxes. That optimism was not shared in the currency markets with the dollar's recent bounce running out of steam as investors took profits even as fresh data showed a pick up in inflationary pressures. US consumer prices recorded their biggest increase in nearly four years in January, backing expectations for the Federal Reserve to raise interest rates at a steady pace over the course of the year. Fed Chair Janet Yellen, in her second day of economic testimony before Congress, offered no additional insight on the timing of the central bank's next rate hike after her comments a day earlier had hinted at a fairly hawkish policy stance. Traders may also be leaning towards a rate increase delayed beyond the Fed's March meeting, with the futures markets only pricing a 27 per cent chance of a tightening next month. The Dollar index, which measures the currency against a trade-weighted basket of six major peers, slipped to 101.02. It rallied to a one-month high of 101.76 on Wednesday. In commodity markets, oil prices softened as record high US crude and gasoline inventories fed concerns about a global glut. US crude was down 0.15 per cent at $53.03 a barrel and Brent was flat at $55.75 a barrel. (Reuters)

Asian stocks at one-and-a-half year highs on robust Wall St; Dollar retreats

World stocks and bond yields rose on Monday, lifted by a re-emergence of so-called &quot;Trump trades&quot; as investors bet that the US&nbsp;president&#39;s tax reform plans will boost economic growth and corporate profits.

Following on from Friday&#39;s record high closes on Wall Street, Asian stocks rallied to 1-1/2-year peaks and European stocks rose for the fifth consecutive session on Monday, their longest winning stretch for two months.

The Japanese yen was the biggest underperformer among major currencies, as is typical when riskier assets like stocks are doing well.

Investors were also comforted by the two-day US-Japan summit held over the weekend apparently having ended smoothly without President Donald Trump talking tough on trade, currency and security issues.

&quot;Markets have continued Friday&#39;s upbeat theme,&quot; said Kathleen Brooks, research director at City Index in London, noting that the VIX measure of US&nbsp;stock market volatility closed last week below 11 for the third week in a row.

The last time this happened was over a decade ago.

&quot;This is another sign that, for now, the Trump trade is still on. It also suggests that even with the controversy Trump has caused since he took office, financial markets are still willing to give him the benefit of the doubt,&quot; Brooks said.

Europe&#39;s benchmark index of leading 300 shares was up 0.3 per cent at 1453 points, lifted by the mining and basic resources sectors. Basic resources rose 2.5 per cent to their highest since August 2014.

Germany&#39;s DAX was up 0.4 per cent, led by a 15 per cent rise in drugmaker Stada after the company said it had received two offers for the acquisition of the company, one of which is private equity group Cinven Partners LLP.

MSCI&#39;s broadest index of Asia-Pacific shares outside Japan gained 0.5 per cent, with resource-related stocks again the driving force, while Japan&#39;s Nikkei rose 0.4 per cent.

US&nbsp;futures pointed to a higher open on Wall Street. The S&amp;P 500, Dow Jones Industrials and Nasdaq Composite all posted record closing highs on Friday.

Conformity

Comments from Trump on Thursday that he plans to announce what he said would be the most ambitious tax reform plan since the Reagan era in the next few weeks rekindled hopes for big tax cuts.

Economic data from major economies has also been upbeat, including Friday&#39;s Chinese trade figures, while US&nbsp;corporate earnings have been also solid so far.

In the weekend meeting with Japanese Prime Minister Shinzo Abe, Trump held off from repeating harsh rhetoric that accused Japan of taking advantage of US&nbsp;security aid, stealing American jobs and &quot;playing money markets.&quot; Nor were currency issues discussed.

&quot;The US&nbsp;president has shown further signs of conformity in US&nbsp;foreign policy during his weekend summit with Japan&#39;s prime minister Abe,&quot; Rabobank analysts said in a note on Monday.

Those apparently cordial discussions drove the dollar as much as 0.9 per cent higher against the yen to 114.17 yen. It last stood at 113.65 yen, up 0.4 per cent on the day and extending its rebound from a 10-week low of 111.59 yen touched last week.

Figures on Monday showed that Japan&#39;s economy grew for a fourth straight quarter in the final three months of last year as a weaker yen supported exports, but doubts over the sustainability of the recovery persisted.

The euro&#39;s rise of 0.5 per cent against the yen to 121.00 yen, helped lift the European currency slightly against the dollar. The euro was last up 0.1 per cent at $1.0650, inching further away from Friday&#39;s three-week low of $1.0608.

The euro has been dogged by fears about a strong showing for French far-right leader Marine Le Pen ahead of a presidential election.

Ten-year US&nbsp;Treasury yields rose 3 basis points to 2.44 per cent.

In commodities, copper hit its highest levels since May 2015 after shipments were shut off from the world&#39;s two biggest copper mines - due to a strike in Chile and an export&#39;s ban by Indonesia.

It last traded at $6,129 per tonne, up 0.7 per cent on the day. On Friday it jumped more than 4 per cent, its biggest one-day rise in almost four years.

Oil prices dipped slightly after strong gains on Friday on reports that OPEC members delivered more than 90 per cent of the output cuts they pledged in a landmark deal that took effect in January.

International benchmark Brent crude futures fell 0.8 per cent to $56.25 per barrel.

(Reuters)

Following on from Friday's record high closes, Asian stocks rallied to 1-1/2-year peaks and European stocks rose for 5th consecutive session

World stocks and bond yields rose on Monday, lifted by a re-emergence of so-called "Trump trades" as investors bet that the US president's tax reform plans will boost economic growth and corporate profits. Following on from Friday's record high closes on Wall Street, Asian stocks rallied to 1-1/2-year peaks and European stocks rose for the fifth consecutive session on Monday, their longest winning stretch for two months. The Japanese yen was the biggest underperformer among major currencies, as is typical when riskier assets like stocks are doing well. Investors were also comforted by the two-day US-Japan summit held over the weekend apparently having ended smoothly without President Donald Trump talking tough on trade, currency and security issues. "Markets have continued Friday's upbeat theme," said Kathleen Brooks, research director at City Index in London, noting that the VIX measure of US stock market volatility closed last week below 11 for the third week in a row. The last time this happened was over a decade ago. "This is another sign that, for now, the Trump trade is still on. It also suggests that even with the controversy Trump has caused since he took office, financial markets are still willing to give him the benefit of the doubt," Brooks said. Europe's benchmark index of leading 300 shares was up 0.3 per cent at 1453 points, lifted by the mining and basic resources sectors. Basic resources rose 2.5 per cent to their highest since August 2014. Germany's DAX was up 0.4 per cent, led by a 15 per cent rise in drugmaker Stada after the company said it had received two offers for the acquisition of the company, one of which is private equity group Cinven Partners LLP. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.5 per cent, with resource-related stocks again the driving force, while Japan's Nikkei rose 0.4 per cent. US futures pointed to a higher open on Wall Street. The S&P 500, Dow Jones Industrials and Nasdaq Composite all posted record closing highs on Friday. Conformity Comments from Trump on Thursday that he plans to announce what he said would be the most ambitious tax reform plan since the Reagan era in the next few weeks rekindled hopes for big tax cuts. Economic data from major economies has also been upbeat, including Friday's Chinese trade figures, while US corporate earnings have been also solid so far. In the weekend meeting with Japanese Prime Minister Shinzo Abe, Trump held off from repeating harsh rhetoric that accused Japan of taking advantage of US security aid, stealing American jobs and "playing money markets." Nor were currency issues discussed. "The US president has shown further signs of conformity in US foreign policy during his weekend summit with Japan's prime minister Abe," Rabobank analysts said in a note on Monday. Those apparently cordial discussions drove the dollar as much as 0.9 per cent higher against the yen to 114.17 yen. It last stood at 113.65 yen, up 0.4 per cent on the day and extending its rebound from a 10-week low of 111.59 yen touched last week. Figures on Monday showed that Japan's economy grew for a fourth straight quarter in the final three months of last year as a weaker yen supported exports, but doubts over the sustainability of the recovery persisted. The euro's rise of 0.5 per cent against the yen to 121.00 yen, helped lift the European currency slightly against the dollar. The euro was last up 0.1 per cent at $1.0650, inching further away from Friday's three-week low of $1.0608. The euro has been dogged by fears about a strong showing for French far-right leader Marine Le Pen ahead of a presidential election. Ten-year US Treasury yields rose 3 basis points to 2.44 per cent. In commodities, copper hit its highest levels since May 2015 after shipments were shut off from the world's two biggest copper mines - due to a strike in Chile and an export's ban by Indonesia. It last traded at $6,129 per tonne, up 0.7 per cent on the day. On Friday it jumped more than 4 per cent, its biggest one-day rise in almost four years. Oil prices dipped slightly after strong gains on Friday on reports that OPEC members delivered more than 90 per cent of the output cuts they pledged in a landmark deal that took effect in January. International benchmark Brent crude futures fell 0.8 per cent to $56.25 per barrel. (Reuters)

Global Markets: 'Trump trades' on boost to economic growth come back with a bang

Asian markets were on tenterhooks on Wednesday as early state exit polls in the US&nbsp;presidential election showed wins for both candidates and no clear trend as yet, causing a nervous shift back to safe haven assets.

Asian stocks and US&nbsp;stock futures edged 0.5 per cent higher in volatile trade, while the Dollar slipped on the Yen and Euro as investors hedged against the risk of a shock win by Republican Donald Trump.

Both Trump and Democrat Hillary Clinton scored early victories in their bitter race, with Trump winning as expected in conservative Indiana, Kentucky and West Virginia and Clinton capturing liberal Vermont.

The victories in the four states were long predicted and not especially significant in a national race where opinion polls show Clinton has an edge.

Markets have tended to favour Clinton as a status quo candidate who would be considered a safe pair of hands at home on the world stage.

&quot;In contrast, a Trump victory would trigger massive uncertainty that would likely undermine risk assets at least initially, which in turn could preclude a Fed rate hike this year,&quot; warned Michelle Girard, chief US&nbsp;economist at RBS.

Much of the action was in the currency markets where the Mexican peso has become a touchstone for sentiment on the election as Trump&#39;s trade policies are seen as damaging to its export-heavy economy.

The dollar jumped 1.2 per cent on the peso as the early results were reported, after hitting its lowest in two months overnight.

The dollar backtracked 0.7 per cent on the safe haven yen to 104.48 Yen, while the Euro rose to $1.1048. Against a basket of currencies, the Dollar was off 0.2 per cent at 97.678.

Yields on 10-year US&nbsp;Treasury yields inched down to 1.849 per cent, after touching a high of 1.876 per cent.

In share markets, MSCI&#39;s broadest index of Asia-Pacific stocks outside Japan was still up 0.4 per cent, but the Nikkei rose 0.8 per cent.

Wall Street had added somewhat to Monday&#39;s stellar gains with the Dow ending up 0.4 per cent. The S&amp;P 500 gained 0.38 per cent and the Nasdaq 0.53 per cent.

Shane Oliver, head of investment strategy at fund manager AMP Capital, said the most positive outcome for US&nbsp;equities would be a Clinton win with a split Congress.

&quot;Historically, since 1927 US&nbsp;total share returns have been strongest at an average 16.7 per cent per year when there has been a Democrat president and Republican control of the House, the Senate or both.&quot;

The return only averaged 8.9 per cent when the Republicans controlled the presidency and Congress.

In commodity markets, gold edged up to $1,278.46 an ounce as the Dollar eased.

Oil took a knock from data showing a surprisingly large rise in crude stocks. US&nbsp;crude eased 19 cents to $44.79, while Brent was untraded early in the Asian day.

(Reuters)

Asian stocks and US stock futures edged 0.5 per cent higher in volatile trade, while the Dollar slipped on the Yen and Euro

Asian markets were on tenterhooks on Wednesday as early state exit polls in the US presidential election showed wins for both candidates and no clear trend as yet, causing a nervous shift back to safe haven assets. Asian stocks and US stock futures edged 0.5 per cent higher in volatile trade, while the Dollar slipped on the Yen and Euro as investors hedged against the risk of a shock win by Republican Donald Trump. Both Trump and Democrat Hillary Clinton scored early victories in their bitter race, with Trump winning as expected in conservative Indiana, Kentucky and West Virginia and Clinton capturing liberal Vermont. The victories in the four states were long predicted and not especially significant in a national race where opinion polls show Clinton has an edge. Markets have tended to favour Clinton as a status quo candidate who would be considered a safe pair of hands at home on the world stage. "In contrast, a Trump victory would trigger massive uncertainty that would likely undermine risk assets at least initially, which in turn could preclude a Fed rate hike this year," warned Michelle Girard, chief US economist at RBS. Much of the action was in the currency markets where the Mexican peso has become a touchstone for sentiment on the election as Trump's trade policies are seen as damaging to its export-heavy economy. The dollar jumped 1.2 per cent on the peso as the early results were reported, after hitting its lowest in two months overnight. The dollar backtracked 0.7 per cent on the safe haven yen to 104.48 Yen, while the Euro rose to $1.1048. Against a basket of currencies, the Dollar was off 0.2 per cent at 97.678. Yields on 10-year US Treasury yields inched down to 1.849 per cent, after touching a high of 1.876 per cent. In share markets, MSCI's broadest index of Asia-Pacific stocks outside Japan was still up 0.4 per cent, but the Nikkei rose 0.8 per cent. Wall Street had added somewhat to Monday's stellar gains with the Dow ending up 0.4 per cent. The S&P 500 gained 0.38 per cent and the Nasdaq 0.53 per cent. Shane Oliver, head of investment strategy at fund manager AMP Capital, said the most positive outcome for US equities would be a Clinton win with a split Congress. "Historically, since 1927 US total share returns have been strongest at an average 16.7 per cent per year when there has been a Democrat president and Republican control of the House, the Senate or both." The return only averaged 8.9 per cent when the Republicans controlled the presidency and Congress. In commodity markets, gold edged up to $1,278.46 an ounce as the Dollar eased. Oil took a knock from data showing a surprisingly large rise in crude stocks. US crude eased 19 cents to $44.79, while Brent was untraded early in the Asian day. (Reuters)

Dollar spooked in Asia as US polls too close to call

World stocks, the dollar and oil fell on Wednesday, while safe-haven assets such as gold and the Swiss franc rose as investors were rattled by signs the US presidential race was tightening just days before the vote.

Investors were beginning to rethink their long-held bets of a November 8 victory for Democratic candidate Hillary Clinton amid signs her Republican rival Donald Trump could be closing the gap, deepening the recent decline across major stock markets.

Asian stocks hit a seven-week low on Wednesday, while European bourses followed Wall Street&#39;s lead overnight and slid to a four-month low.

Bonds rose alongside gold, the Swiss franc and Japanese yen, with the yield on 10-year US Treasuries falling for the third day in a row. British gilts, which have recently been slammed by uncertainty surrounding the post-Brexit UK outlook, surged too.

&quot;The lead up to the US presidential election was always expected to be lively but the events of the last couple of days have seriously taken their toll on investor sentiment,&quot; said Craig Erlam, senior market analyst at Oanda in London.

Investor anxiety has deepened in recent sessions over a possible Trump victory given uncertainty on the Republican candidate&#39;s stance on key issues including foreign policy, trade relations and immigrants, while Clinton is viewed as a candidate of the status quo.

Europe&#39;s index of leading 300 shares was last down 0.4 per cent, having earlier hit a four-month low of 1,313 points. Britain&#39;s Britain&#39;s FTSE and Germany&#39;s DAX fell 0.4 and 0.7 per cent, respectively.

MSCI&#39;s broadest index of Asia-Pacific shares outside Japan dropped 1.1 per cent to seven-week lows while the yen&#39;s rise to a two-week high helped push Japan&#39;s Nikkei down 1.8 percent.

US stock futures recovered earlier losses, pointing to a fall of only 0.1 per cent at the open. This would still signify a fresh four-month low for Wall Street.

Pricing a Trump victory

The tumultuous presidential race appeared to tighten after news that the Federal Bureau of Investigation was reviewing more emails as part of a probe into Clinton&#39;s use of a private email server.

While Clinton held a five-percentage-point lead over Trump, according to a Reuters/Ipsos opinion poll released on Monday, some other polls showed her Republican rival ahead by 1-2 percentage points.

Barclays strategists estimate that a rise in Trump&#39;s polling odds to 50 per cent could see the S&amp;P 500 fall 4-5 percent, and potentially as much as 10-11 percent if he wins.

This has unnerved markets and the CBOE volatility index, often seen as investors&#39; fear gauge, rose to a two-month high above 20 percent.

The tension in markets came as the Federal Reserve holds its two-day policy meeting, with its statement due later on Wednesday. While traders do not expect a rate hike just a week ahead of the presidential election, they are looking for signs that the Fed will move in December.

Investors have grown increasingly confident in recent weeks that the Fed will follow through next month, attaching an 80 percent probability to such a move, according to fed funds futures pricing.

But currency traders have sold the dollar this week in part because they suspect Trump would prefer a weaker dollar given his protectionist stance on international trade, and in part because the uncertainty surrounding a Trump win might lead to a more dovish stance from the Fed in the months ahead.

The dollar fell again on Wednesday, after posting its biggest one-day fall on Tuesday in two months.

The euro rose 0.4 per cent to touch $1.11 for the first time in more than three weeks. It is up about two per cent from its 7-1/2-month low of $1.0851 hit last week.

Against the yen, the dollar fell 0.8 percent to 103.24 yen from three-month high of 105.54 yen set on Friday.

&quot;If you had a long dollar position on the view that the dollar would gain because Clinton would win, you would surely close that position because her victory is less certain,&quot; said Koichi Yoshikawa, executive director of financial markets at Standard Chartered Bank.

Other safe-haven assets also rose. The Swiss franc hit a four-month high of 1.0750 francs per euro, its highest level since late June, while gold reached a four-week high of $1,297 per ounce.

Oil prices fell for the fourth day in a row, sliding to one-month lows. Brent crude futures fell more than 1 percent to $47.53 per barrel, and US crude was down as low as $46.06. Oil has lost 10 percent in the last two weeks.

(Reuters)

Investors fear Trump's victory because of his uncertain stance on issues of foreign policy, trade relations and immigrants

World stocks, the dollar and oil fell on Wednesday, while safe-haven assets such as gold and the Swiss franc rose as investors were rattled by signs the US presidential race was tightening just days before the vote. Investors were beginning to rethink their long-held bets of a November 8 victory for Democratic candidate Hillary Clinton amid signs her Republican rival Donald Trump could be closing the gap, deepening the recent decline across major stock markets. Asian stocks hit a seven-week low on Wednesday, while European bourses followed Wall Street's lead overnight and slid to a four-month low. Bonds rose alongside gold, the Swiss franc and Japanese yen, with the yield on 10-year US Treasuries falling for the third day in a row. British gilts, which have recently been slammed by uncertainty surrounding the post-Brexit UK outlook, surged too. "The lead up to the US presidential election was always expected to be lively but the events of the last couple of days have seriously taken their toll on investor sentiment," said Craig Erlam, senior market analyst at Oanda in London. Investor anxiety has deepened in recent sessions over a possible Trump victory given uncertainty on the Republican candidate's stance on key issues including foreign policy, trade relations and immigrants, while Clinton is viewed as a candidate of the status quo. Europe's index of leading 300 shares was last down 0.4 per cent, having earlier hit a four-month low of 1,313 points. Britain's Britain's FTSE and Germany's DAX fell 0.4 and 0.7 per cent, respectively. MSCI's broadest index of Asia-Pacific shares outside Japan dropped 1.1 per cent to seven-week lows while the yen's rise to a two-week high helped push Japan's Nikkei down 1.8 percent. US stock futures recovered earlier losses, pointing to a fall of only 0.1 per cent at the open. This would still signify a fresh four-month low for Wall Street. Pricing a Trump victory The tumultuous presidential race appeared to tighten after news that the Federal Bureau of Investigation was reviewing more emails as part of a probe into Clinton's use of a private email server. While Clinton held a five-percentage-point lead over Trump, according to a Reuters/Ipsos opinion poll released on Monday, some other polls showed her Republican rival ahead by 1-2 percentage points. Barclays strategists estimate that a rise in Trump's polling odds to 50 per cent could see the S&P 500 fall 4-5 percent, and potentially as much as 10-11 percent if he wins. This has unnerved markets and the CBOE volatility index, often seen as investors' fear gauge, rose to a two-month high above 20 percent. The tension in markets came as the Federal Reserve holds its two-day policy meeting, with its statement due later on Wednesday. While traders do not expect a rate hike just a week ahead of the presidential election, they are looking for signs that the Fed will move in December. Investors have grown increasingly confident in recent weeks that the Fed will follow through next month, attaching an 80 percent probability to such a move, according to fed funds futures pricing. But currency traders have sold the dollar this week in part because they suspect Trump would prefer a weaker dollar given his protectionist stance on international trade, and in part because the uncertainty surrounding a Trump win might lead to a more dovish stance from the Fed in the months ahead. The dollar fell again on Wednesday, after posting its biggest one-day fall on Tuesday in two months. The euro rose 0.4 per cent to touch $1.11 for the first time in more than three weeks. It is up about two per cent from its 7-1/2-month low of $1.0851 hit last week. Against the yen, the dollar fell 0.8 percent to 103.24 yen from three-month high of 105.54 yen set on Friday. "If you had a long dollar position on the view that the dollar would gain because Clinton would win, you would surely close that position because her victory is less certain," said Koichi Yoshikawa, executive director of financial markets at Standard Chartered Bank. Other safe-haven assets also rose. The Swiss franc hit a four-month high of 1.0750 francs per euro, its highest level since late June, while gold reached a four-week high of $1,297 per ounce. Oil prices fell for the fourth day in a row, sliding to one-month lows. Brent crude futures fell more than 1 percent to $47.53 per barrel, and US crude was down as low as $46.06. Oil has lost 10 percent in the last two weeks. (Reuters)

Global stocks fall over chances of Trump's victory in US elections

Most Asian share markets tumbled on Monday while the US dollar added to gains made after Federal Reserve chair Janet Yellen indicated a US interest rate increase remains on the cards for this year. 
 
European markets also looked set for a weak start, with financial spreadbetters expecting Germany&#39;s DAX to open down 0.7 per cent, and the blue-chip Euro Stoxx 50 to begin the day 0.6 per&nbsp; cent lower. British markets are closed for a holiday. 
 
The broadest index of MSCI, a US-based provider of investment decision support tools to investment institutions worldwide, of Asia-Pacific shares outside Japan extended losses to 1 per cent. 
 
Japan&#39;s Nikkei bucked the trend, closing 2.3 per cent higher, the biggest one-day gain in three weeks, as the yen weakened against the resurgent dollar. 
 
China&#39;s CSI 300 index and the Shanghai Composite slipped 0.2 per cent. Hong Kong&#39;s Hang Seng shed 0.4 per cent. 
 
The case for a US rate hike has strengthened in recent months, with a lot of new jobs being created, and economic growth looks likely to continue at a moderate pace, Yellen said in a speech at the Fed&#39;s annual monetary policy conference in Jackson Hole, Wyoming, on Friday. 
 
While Yellen did not give guidance on what the central bank needs to see before raising rates, she said the Fed already thinks it is close to meeting its goals of maximum employment and stable prices. She described consumer spending as &quot;solid&quot; but noted that US business investment was weak and exports hurt by a strong dollar. 
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<h5>While Yellen did not give guidance on what the central bank needs to see before raising rates, she said the Fed already thinks it is close to meeting its goals of maximum employment and stable prices.</h5>
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<div class="share-blockquote"><a class="twitter popup" href="http://twitter.com/intent/tweet?text=While Yellen did not give guidance on what the central bank needs to see before raising rates, she said the Fed already thinks it is close to meeting its goals of maximum employment and stable prices." target="_blank">&nbsp;</a></div>
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Comments by the Fed&#39;s No. 2 policymaker, vice chair Stanley Fischer, following Yellen&#39;s speech also bolstered the case for a hike this year. 
 
Asked on CNBC whether a rate hike in September and more than one policy tightening before year-end should be expected, Fischer said Yellen&#39;s comments were &quot;consistent with answering yes&quot; to both questions, albeit still data-dependent. 
 
Among the first data to be scrutinised will be US consumer confidence for August, due on Tuesday; productivity, manufacturing and construction figures on Thursday; and August non-farm payrolls data rounding out the week on Friday. 
 
Global factory activity surveys will also be released on Thursday. 
 
Traders have modestly raised expectations for US rate increases this year, but remain cautious. 
 
The odds of a hike in September rose to 33 per cent following the comments, from 21 per cent on Thursday, according to CME Group&#39;s FedWatch tool. Traders were pricing in a 59.1 per cent chance of a hike in December, up from 51.8 per cent on Thursday. 
 
&quot;While the move towards another Fed rate hike will likely cause bouts of consternation in investment markets, I don&rsquo;t see the same degree of uncertainty that we saw around last year&rsquo;s Fed rate hike,&quot; Shane Oliver, head of investment strategy at AMP Capital in Sydney, wrote in a note. 
 
&quot;It&#39;s clear from the Fed&#39;s actions this year that it is aware of global risks, the impact of its own actions on those risks and any potential blow back to the U.S. economy and of the impact of a rising U.S. dollar in doing some of its work for it.&quot; 
 
The comments from Yellen and Fischer dragged Wall Street lower at the close. 
 
But they proved a boon for the US currency, with the dollar index, which tracks the greenback against six global peers, jumping 0.8 percent on Friday. It held steady at 95.552 on Monday. 
 
The dollar rose 0.5 per cent to a two-week high of 102.34 yen on Monday. That followed gains of 1.3 per cent on Friday, its biggest one-day advance in almost seven weeks. 
 
Japanese household spending and retail sales data for July are due on Tuesday. Investors are seeking some sign that Prime Minister Shinzo Abe&#39;s massive stimulus programmes are having an effect, after figures on Friday showed a decline in consumer prices by the most in three years in July. 
 
The euro was flat at $1.120 after tumbling 0.8 per cent on Friday, its biggest one-day slide since July 15. 
 
In commodities, crude prices retreated on the rally in the dollar and concerns about growing output after exports from Iraq in August exceeded July levels. 
 
Iran also said late last week that it would only cooperate in upcoming producer talks in September if other exporters recognized Tehran&#39;s right to regain market share lost during international sanctions that were only lifted in January. 
 
US crude futures dropped 1.5 per cent to $46.95. 
 
Global benchmark Brent crude retreated 1.2 per cent to $49.31. 
 
The stronger dollar also weighed on gold. Spot gold slipped 0.2 per cent to $1,318.10, after earlier touching a five-week low. 
 
(Reuters)

Federal Reserve chair Janet Yellen had indicated a US interest rate increase remains on the cards for this year

Most Asian share markets tumbled on Monday while the US dollar added to gains made after Federal Reserve chair Janet Yellen indicated a US interest rate increase remains on the cards for this year. European markets also looked set for a weak start, with financial spreadbetters expecting Germany's DAX to open down 0.7 per cent, and the blue-chip Euro Stoxx 50 to begin the day 0.6 per cent lower. British markets are closed for a holiday. The broadest index of MSCI, a US-based provider of investment decision support tools to investment institutions worldwide, of Asia-Pacific shares outside Japan extended losses to 1 per cent. Japan's Nikkei bucked the trend, closing 2.3 per cent higher, the biggest one-day gain in three weeks, as the yen weakened against the resurgent dollar. China's CSI 300 index and the Shanghai Composite slipped 0.2 per cent. Hong Kong's Hang Seng shed 0.4 per cent. The case for a US rate hike has strengthened in recent months, with a lot of new jobs being created, and economic growth looks likely to continue at a moderate pace, Yellen said in a speech at the Fed's annual monetary policy conference in Jackson Hole, Wyoming, on Friday. While Yellen did not give guidance on what the central bank needs to see before raising rates, she said the Fed already thinks it is close to meeting its goals of maximum employment and stable prices. She described consumer spending as "solid" but noted that US business investment was weak and exports hurt by a strong dollar. While Yellen did not give guidance on what the central bank needs to see before raising rates, she said the Fed already thinks it is close to meeting its goals of maximum employment and stable prices. Comments by the Fed's No. 2 policymaker, vice chair Stanley Fischer, following Yellen's speech also bolstered the case for a hike this year. Asked on CNBC whether a rate hike in September and more than one policy tightening before year-end should be expected, Fischer said Yellen's comments were "consistent with answering yes" to both questions, albeit still data-dependent. Among the first data to be scrutinised will be US consumer confidence for August, due on Tuesday; productivity, manufacturing and construction figures on Thursday; and August non-farm payrolls data rounding out the week on Friday. Global factory activity surveys will also be released on Thursday. Traders have modestly raised expectations for US rate increases this year, but remain cautious. The odds of a hike in September rose to 33 per cent following the comments, from 21 per cent on Thursday, according to CME Group's FedWatch tool. Traders were pricing in a 59.1 per cent chance of a hike in December, up from 51.8 per cent on Thursday. "While the move towards another Fed rate hike will likely cause bouts of consternation in investment markets, I don’t see the same degree of uncertainty that we saw around last year’s Fed rate hike," Shane Oliver, head of investment strategy at AMP Capital in Sydney, wrote in a note. "It's clear from the Fed's actions this year that it is aware of global risks, the impact of its own actions on those risks and any potential blow back to the U.S. economy and of the impact of a rising U.S. dollar in doing some of its work for it." The comments from Yellen and Fischer dragged Wall Street lower at the close. But they proved a boon for the US currency, with the dollar index, which tracks the greenback against six global peers, jumping 0.8 percent on Friday. It held steady at 95.552 on Monday. The dollar rose 0.5 per cent to a two-week high of 102.34 yen on Monday. That followed gains of 1.3 per cent on Friday, its biggest one-day advance in almost seven weeks. Japanese household spending and retail sales data for July are due on Tuesday. Investors are seeking some sign that Prime Minister Shinzo Abe's massive stimulus programmes are having an effect, after figures on Friday showed a decline in consumer prices by the most in three years in July. The euro was flat at $1.120 after tumbling 0.8 per cent on Friday, its biggest one-day slide since July 15. In commodities, crude prices retreated on the rally in the dollar and concerns about growing output after exports from Iraq in August exceeded July levels. Iran also said late last week that it would only cooperate in upcoming producer talks in September if other exporters recognized Tehran's right to regain market share lost during international sanctions that were only lifted in January. US crude futures dropped 1.5 per cent to $46.95. Global benchmark Brent crude retreated 1.2 per cent to $49.31. The stronger dollar also weighed on gold. Spot gold slipped 0.2 per cent to $1,318.10, after earlier touching a five-week low. (Reuters)

Most Asia stocks slide on Fed officials' rate comments, dollar firms

Asian stocks turned lower today and the Yen surged after the Bank of Japan (BOJ) refrained from taking further stimulus steps, hours after the Federal Reserve&#39;s (Fed&#39;s) own review had struck a cautious note on its policy outlook. 
 
The Dollar was already under pressure after the Fed left interest rates unchanged overnight and became slightly less hawkish. While signalling that it still expected two rate hikes this year, the Fed also said slower economic growth would crimp the pace of monetary policy tightening in future years. 
 
Spreadbetters expected Europe to follow Asia&#39;s lead and saw a lower open for Britain&#39;s Financial Times Stock Exchange (FTSE), Germany&#39;s Deutscher Aktienindex (DAX) and France&#39;s Cotation Assist?e en Continu (CAC).&nbsp; 
 
The BOJ kept monetary policy steady and stuck to its optimistic view of the economy today even as renewed yen rises and slumping stock prices threaten to derail a fragile economic recovery. 
 
While the BOJ&#39;s decision did not come as a big surprise, expectations that the central bank will take action next month increased. But for now uncertainty over whether Britain will vote to quit the European Union is strengthening the Yen because of the Japanese currency&#39;s safe-haven status. 
 
&quot;The Bank of Japan are in a pickle and more than most will be really hoping that the UK don&#39;t vote to &#39;leave,&#39; or USD/JPY will be trading below 100 Yen and they will have to do something amazingly punchy just to stabilise assets,&quot; wrote Chris Weston, chief market strategist at IG in Melbourne. 
 
&quot;On the other hand, even if the UK votes to &#39;remain&#39; and risk assets undergo some sort of relief rally, domestic inflation expectations shouldn&#39;t pick up greatly and they may need to ease in this scenario anyhow.&quot; 
Morgan Stanley Capital International&#39;s (MSCI) broadest index of Asia-Pacific shares outside Japan was last down 0.9 per cent.&nbsp; 
 
Japan&#39;s Nikkei hit a two-month intraday low and was last down 2.6 per cent. 
 
South Korea&#39;s Kospi lost 0.8 per cent and Hong Kong&#39;s Hang Seng dropped 1.9 per cent. 
 
On the whole, investors were still cautious on worries Britain may vote to leave the European Union, which saw US stocks fall for a fifth straight session overnight despite the Fed&#39;s subdued view on interest rates. 
 
While the US central bank kept policy steady as widely expected and lowered its economic projections, it did signal that it still planned to raise rates twice in 2016. 
 
However, the Fed&#39;s conviction appeared shakier with six of its 17 policymakers projecting just one increase this year. Only one Fed policymaker had done so when economic forecasts were last issued in March. 
 
&quot;Although the Fed&#39;s projection tout two rate hikes, a rate hike in July is highly unlikely, which makes it questionable whether the Fed can raise rates twice in its three policy meetings left by the end of year,&quot; said Daisuke Uno, chief strategist at Sumitomo Mitsui Bank. 
 
The greenback was down 1.5 per cent at 104.400 Yen after hitting 104.320, its lowest since September 2014. 
 
The Yen also hit its highest level since January 2013 against the Euro and a four-year peak versus the Australian Dollar. 
 
The Euro inched up 0.1 per cent to $1.1272 after gaining 0.5 per cent overnight.&nbsp; 
 
The 10-year Treasury note yield slipped to a four-month trough of 1.545 per cent and added pressure on the Dollar. 
 
The recent bout of global risk aversion generated by Brexit fears have boosted safe-havens like government debt, sending the German and Japanese benchmark 10-year yields to record lows this week. 
 
The Brexit concerns also saw US crude oil fall 1 per cent to $47.52 a barrel, on track for a sixth straight day of losses. Brent crude was down 0.8 per cent at $48.59 a barrel. 
 
Spot gold touched $1,301.40 an ounce, highest since May 3, thanks to the Fed&#39;s seemingly more cautious approach to monetary tightening. Higher interest rates tend to diminish the appeal of non-yielding gold. 
(Reuters)

Bank of Japan's uncertainty over whether Britain would vote to quit the EU is strengthening the yen due to its safe-haven status

Asian stocks turned lower today and the Yen surged after the Bank of Japan (BOJ) refrained from taking further stimulus steps, hours after the Federal Reserve's (Fed's) own review had struck a cautious note on its policy outlook. The Dollar was already under pressure after the Fed left interest rates unchanged overnight and became slightly less hawkish. While signalling that it still expected two rate hikes this year, the Fed also said slower economic growth would crimp the pace of monetary policy tightening in future years. Spreadbetters expected Europe to follow Asia's lead and saw a lower open for Britain's Financial Times Stock Exchange (FTSE), Germany's Deutscher Aktienindex (DAX) and France's Cotation Assist?e en Continu (CAC). The BOJ kept monetary policy steady and stuck to its optimistic view of the economy today even as renewed yen rises and slumping stock prices threaten to derail a fragile economic recovery. While the BOJ's decision did not come as a big surprise, expectations that the central bank will take action next month increased. But for now uncertainty over whether Britain will vote to quit the European Union is strengthening the Yen because of the Japanese currency's safe-haven status. "The Bank of Japan are in a pickle and more than most will be really hoping that the UK don't vote to 'leave,' or USD/JPY will be trading below 100 Yen and they will have to do something amazingly punchy just to stabilise assets," wrote Chris Weston, chief market strategist at IG in Melbourne. "On the other hand, even if the UK votes to 'remain' and risk assets undergo some sort of relief rally, domestic inflation expectations shouldn't pick up greatly and they may need to ease in this scenario anyhow." Morgan Stanley Capital International's (MSCI) broadest index of Asia-Pacific shares outside Japan was last down 0.9 per cent. Japan's Nikkei hit a two-month intraday low and was last down 2.6 per cent. South Korea's Kospi lost 0.8 per cent and Hong Kong's Hang Seng dropped 1.9 per cent. On the whole, investors were still cautious on worries Britain may vote to leave the European Union, which saw US stocks fall for a fifth straight session overnight despite the Fed's subdued view on interest rates. While the US central bank kept policy steady as widely expected and lowered its economic projections, it did signal that it still planned to raise rates twice in 2016. However, the Fed's conviction appeared shakier with six of its 17 policymakers projecting just one increase this year. Only one Fed policymaker had done so when economic forecasts were last issued in March. "Although the Fed's projection tout two rate hikes, a rate hike in July is highly unlikely, which makes it questionable whether the Fed can raise rates twice in its three policy meetings left by the end of year," said Daisuke Uno, chief strategist at Sumitomo Mitsui Bank. The greenback was down 1.5 per cent at 104.400 Yen after hitting 104.320, its lowest since September 2014. The Yen also hit its highest level since January 2013 against the Euro and a four-year peak versus the Australian Dollar. The Euro inched up 0.1 per cent to $1.1272 after gaining 0.5 per cent overnight. The 10-year Treasury note yield slipped to a four-month trough of 1.545 per cent and added pressure on the Dollar. The recent bout of global risk aversion generated by Brexit fears have boosted safe-havens like government debt, sending the German and Japanese benchmark 10-year yields to record lows this week. The Brexit concerns also saw US crude oil fall 1 per cent to $47.52 a barrel, on track for a sixth straight day of losses. Brent crude was down 0.8 per cent at $48.59 a barrel. Spot gold touched $1,301.40 an ounce, highest since May 3, thanks to the Fed's seemingly more cautious approach to monetary tightening. Higher interest rates tend to diminish the appeal of non-yielding gold. (Reuters)

Yen surges after Bank of Japan refrains from offering more stimulus, Asian stocks down

Asian stocks declined on Thursday, led by sliding Japanese equities, while a weaker Dollar lifted&nbsp;commodities such as gold and crude oil.

Spreadbetters expected a lower open for Britain&#39;s Financial Times Stock Exchange(FTSE), Germany&#39;s DAX and France&#39;s CAC with a stronger Euro seen weighing on European shares.

The New Zealand Dollar soared to a one-year high after the nation&#39;s central bank kept interest rates steady as expected, even as some in the market had wagered on a cut.

Morgan Stanley Capital International&#39;s (MSCI)&nbsp;broadest index of Asia-Pacific shares outside Japan was down 0.2 per cent after rising by as much as 0.3 per cent earlier to a six-week high.

Nikkei pulled back 1.3 per cent, hurt by a stronger Yen. Financial markets in Hong Kong and China were closed for holidays.

South Korea&#39;s Kospi lost 0.3 per cent. The index briefly rose to a 2016 high after the Bank of Korea (BOK) unexpectedly cut its policy rate to a record low 1.25 per cent amid weak inflation and stagnant exports. The BOK may also be looking to cushion the economy as the government drives a major overhaul of the struggling shipping and shipbuilding industries that could see large job losses.

&quot;Many expected the US&nbsp;Federal Reserve to hike rates in June or July but after the May (US) jobs data a June hike now seems impossible. The BOK probably thought taking action before the Fed&#39;s rate hike would be safer,&quot; said Lee Sur-bee, fixed income analyst at Samsung Securities.

On Wall Street, Dow gained 0.4 per cent overnight, rising above 18,000 for the first time since April as a weaker dollar lifted some commodity-related shares.

The greenback slipped 0.4 per cent to 106.58 Yen, nearing a one-month low of 106.35 hit on Monday in the wake of the jobs report.

Euro rose to a one-month peak of $1.1416, with the latest uptick coming after the European Central Bank began buying corporate debt for its bond purchase program in a bid to boost the euro zone economy.

The New Zealand dollar was the region&#39;s outperformer, rallying about 1.7 per cent to a one-year high of $0.7148 after the Reserve Bank of New Zealand held interest rates steady while retaining an easing bias.

Kiwi surged as not all in the market had expected the central bank to stand pat.

&quot;We were surprised, we were calling for a rate cut. We still see one so the next opportunity is August. A key reason for that is persistent strength in the exchange rate,&quot; said Jane Turner, senior economist at ASB Bank.

&quot;The Reserve Bank is relying on a lower New Zealand Dollar to achieve their inflation target and based on where the exchange rate is now, they&#39;re not going to achieve that without cutting the cash rate further.&quot;

In commodities, US&nbsp;crude oil extended overnight gains to reach an 11-month high of $51.67 a barrel. In addition to a weaker Dollar, supply worries caused by a sabotage of oil facilities in major producer Nigeria has boosted oil.

Brent crude rose as high as $52.86 a barrel, highest since October 2015.

Spot gold advanced to a three-week high of $1,266.01 an ounce, while aluminium climbed to a one-month high of $1,614.50 a tonne. Copper also inched higher.

Asian stocks fall due to decreasing Japanese equities while New Zealand Dollar outperformed with a hike of 1.7 per cent.

Asian stocks declined on Thursday, led by sliding Japanese equities, while a weaker Dollar lifted commodities such as gold and crude oil. Spreadbetters expected a lower open for Britain's Financial Times Stock Exchange(FTSE), Germany's DAX and France's CAC with a stronger Euro seen weighing on European shares. The New Zealand Dollar soared to a one-year high after the nation's central bank kept interest rates steady as expected, even as some in the market had wagered on a cut. Morgan Stanley Capital International's (MSCI) broadest index of Asia-Pacific shares outside Japan was down 0.2 per cent after rising by as much as 0.3 per cent earlier to a six-week high. Nikkei pulled back 1.3 per cent, hurt by a stronger Yen. Financial markets in Hong Kong and China were closed for holidays. South Korea's Kospi lost 0.3 per cent. The index briefly rose to a 2016 high after the Bank of Korea (BOK) unexpectedly cut its policy rate to a record low 1.25 per cent amid weak inflation and stagnant exports. The BOK may also be looking to cushion the economy as the government drives a major overhaul of the struggling shipping and shipbuilding industries that could see large job losses. "Many expected the US Federal Reserve to hike rates in June or July but after the May (US) jobs data a June hike now seems impossible. The BOK probably thought taking action before the Fed's rate hike would be safer," said Lee Sur-bee, fixed income analyst at Samsung Securities. On Wall Street, Dow gained 0.4 per cent overnight, rising above 18,000 for the first time since April as a weaker dollar lifted some commodity-related shares. The greenback slipped 0.4 per cent to 106.58 Yen, nearing a one-month low of 106.35 hit on Monday in the wake of the jobs report. Euro rose to a one-month peak of $1.1416, with the latest uptick coming after the European Central Bank began buying corporate debt for its bond purchase program in a bid to boost the euro zone economy. The New Zealand dollar was the region's outperformer, rallying about 1.7 per cent to a one-year high of $0.7148 after the Reserve Bank of New Zealand held interest rates steady while retaining an easing bias. Kiwi surged as not all in the market had expected the central bank to stand pat. "We were surprised, we were calling for a rate cut. We still see one so the next opportunity is August. A key reason for that is persistent strength in the exchange rate," said Jane Turner, senior economist at ASB Bank. "The Reserve Bank is relying on a lower New Zealand Dollar to achieve their inflation target and based on where the exchange rate is now, they're not going to achieve that without cutting the cash rate further." In commodities, US crude oil extended overnight gains to reach an 11-month high of $51.67 a barrel. In addition to a weaker Dollar, supply worries caused by a sabotage of oil facilities in major producer Nigeria has boosted oil. Brent crude rose as high as $52.86 a barrel, highest since October 2015. Spot gold advanced to a three-week high of $1,266.01 an ounce, while aluminium climbed to a one-month high of $1,614.50 a tonne. Copper also inched higher.

Japan assists lowering Asian stocks, New Zealand Dollar soars high

Asian stocks rose to a five-week high on Tuesday after US&nbsp;Federal Reserve chair Janet Yellen gave a largely upbeat assessment of the US&nbsp;economic outlook, while the Dollar declined on easing expectations of interest rate increases in coming months.

Financial spreadbetters predicted Britain&#39;s Financial Times Stock Exchange&nbsp;(FTSE) 100 would open down 0.10 per cent, Germany&#39;s DAX will&nbsp;gain 0.15 percent, and France&#39;s CAC 40 to open flat.

&nbsp;Morgan Stanley Capital International&#39;s (MSCI)&nbsp;broadest index of Asia-Pacific shares outside Japan rose more than 1 per cent, taking its gains to 6 per cent in two weeks, as investors judged the Fed&#39;s cautious stance as well-suited to equities.

In Asia, Hong Kong led regional stock markets, rising 1 per cent as investors hunted for bargains in one of the cheapest equity markets in the region.

Japan&#39;s Nikkei ended up 0.6 per cent as attention turned to whether the Bank of Japan will ease policy again next week, as strength in the yen crimps the economy.

&quot;Yellen&#39;s comments yesterday downplayed the impact of the jobs data last week and gave a cautious sense of optimism on the outlook for the U.S. economy,&quot; said Fan Cheuk Wan, head of Asia investment strategy at HSBC Private Bank.

&quot;Her comments point towards the world remaining stuck in a low-growth and low-yield environment which should be positive for risky assets and keep the dollar soft,&quot; Wan added.

The Fed chief said last month&#39;s jobs report was &quot;disappointing&quot; but warned against attaching too much significance to the payrolls data in isolation.

Still, Yellen was careful not to give any hints about the timing of a next rate increase, in contrast to a speech on May 27, when she said such a move would probably be appropriate &quot;in coming months.&quot;

World markets cheered her comments, with US&nbsp;stocks closing a shade below a recent record.

Money market futures reduced bets on a July rate hike further, to around 20 per cent, from 30 pe rcent before Yellen&#39;s comments. They were pricing in about a 60 per cent chance of a rate hike by July before Friday&#39;s weak payrolls data.

With the Fed suggesting it was in no rush to increase interest rates, bond yields slipped with 10-year US&nbsp;Treasury yields retreating to 1.74 per cent from 1.84 per cent last week. Benchmark yields are down 63 basis points so far this year.

Lower yields on government debt translated into further inflows into relatively higher-yielding corporate debt, with an index of Asian bonds tracked by JP Morgan rising to fresh highs.

Inflows into Asia-focused equity funds also showed a noticeable pickup in recent weeks, according to Thomson Reuters data.

The Dollar index against a basket of other major currencies hit a four-week low of 93.745 before bouncing back to 94.066.

The euro eased to $1.13590 after having scaled a four-week high of $1.3930, while the yen also stepped back to 107.545 per Dollar from Monday&#39;s five-week high of 106.35.

The Australian Dollar climbed to a one-month high of $0.7426 after the Reserve Bank of Australia kept rates steady at a policy meeting and investors scaled back expectations of a near-term cut.

Elsewhere, oil prices held firm after crippling attacks on Nigeria&#39;s oil industry and fresh draws in US&nbsp;crude stockpiles.

Global crude benchmark Brent futures hit a seven-month high of $50.83 per barrel on Monday before easing to $50.46 early on Tuesday.

US&nbsp;West Texas Intermediate (WTI) crude stood firm in Asia at $49.60 per barrel, after rising 2.2 percent on Monday, its largest gain in three weeks.

Asian stocks soared after Janet Yellen, US Fed chair, found the US economic outlook to be satisfactory.

Asian stocks rose to a five-week high on Tuesday after US Federal Reserve chair Janet Yellen gave a largely upbeat assessment of the US economic outlook, while the Dollar declined on easing expectations of interest rate increases in coming months. Financial spreadbetters predicted Britain's Financial Times Stock Exchange (FTSE) 100 would open down 0.10 per cent, Germany's DAX will gain 0.15 percent, and France's CAC 40 to open flat. Morgan Stanley Capital International's (MSCI) broadest index of Asia-Pacific shares outside Japan rose more than 1 per cent, taking its gains to 6 per cent in two weeks, as investors judged the Fed's cautious stance as well-suited to equities. In Asia, Hong Kong led regional stock markets, rising 1 per cent as investors hunted for bargains in one of the cheapest equity markets in the region. Japan's Nikkei ended up 0.6 per cent as attention turned to whether the Bank of Japan will ease policy again next week, as strength in the yen crimps the economy. "Yellen's comments yesterday downplayed the impact of the jobs data last week and gave a cautious sense of optimism on the outlook for the U.S. economy," said Fan Cheuk Wan, head of Asia investment strategy at HSBC Private Bank. "Her comments point towards the world remaining stuck in a low-growth and low-yield environment which should be positive for risky assets and keep the dollar soft," Wan added. The Fed chief said last month's jobs report was "disappointing" but warned against attaching too much significance to the payrolls data in isolation. Still, Yellen was careful not to give any hints about the timing of a next rate increase, in contrast to a speech on May 27, when she said such a move would probably be appropriate "in coming months." World markets cheered her comments, with US stocks closing a shade below a recent record. Money market futures reduced bets on a July rate hike further, to around 20 per cent, from 30 pe rcent before Yellen's comments. They were pricing in about a 60 per cent chance of a rate hike by July before Friday's weak payrolls data. With the Fed suggesting it was in no rush to increase interest rates, bond yields slipped with 10-year US Treasury yields retreating to 1.74 per cent from 1.84 per cent last week. Benchmark yields are down 63 basis points so far this year. Lower yields on government debt translated into further inflows into relatively higher-yielding corporate debt, with an index of Asian bonds tracked by JP Morgan rising to fresh highs. Inflows into Asia-focused equity funds also showed a noticeable pickup in recent weeks, according to Thomson Reuters data. The Dollar index against a basket of other major currencies hit a four-week low of 93.745 before bouncing back to 94.066. The euro eased to $1.13590 after having scaled a four-week high of $1.3930, while the yen also stepped back to 107.545 per Dollar from Monday's five-week high of 106.35. The Australian Dollar climbed to a one-month high of $0.7426 after the Reserve Bank of Australia kept rates steady at a policy meeting and investors scaled back expectations of a near-term cut. Elsewhere, oil prices held firm after crippling attacks on Nigeria's oil industry and fresh draws in US crude stockpiles. Global crude benchmark Brent futures hit a seven-month high of $50.83 per barrel on Monday before easing to $50.46 early on Tuesday. US West Texas Intermediate (WTI) crude stood firm in Asia at $49.60 per barrel, after rising 2.2 percent on Monday, its largest gain in three weeks.

Asian stocks rise, Dollar eases as US economic outlook gets thumbs up from Fed

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