Asian shares rose to new 19-month highs on Monday ahead of the expected signing on <a href="https://www.wionews.com/world/details-of-us-china-deal-to-be-published-after-signing-white-house-273483">Phase One</a>&nbsp;China-US&nbsp;trade deal, although markets have yet to see the details of the agreement.

<a href="https://www.wionews.com/business-economy/nifty-sensex-headed-for-weekly-gain-as-mideast-tensions-ease-273346">MSCI's broadest index</a> of Asia-Pacific shares outside Japan was 0.47 per cent&nbsp;higher, touching its highest point since June 2018. Japanese markets were closed for a holiday.

South Korea's trade-sensitive Kospi added 0.73 per cent&nbsp;and Hong Kong's Hang Seng was up 0.74 per cent, while Taiwan shares added 0.6 per cent&nbsp;in the first trading day after Taiwanese re-elected President <a href="https://www.wionews.com/world/hong-kongs-strengths-as-global-financial-hub-intact-despite-protests-carrie-lam-273828">Tsai Ing-wen</a> by a landslide on Saturday.

Mainland Chinese shares lagged the regional index after China's major equity indexes logged their sixth consecutive weekly rise last week, the longest such streak since the first quarter of 2019.

The benchmark <a href="https://www.wionews.com/business-economy/sensex-jumps-634-points-as-us-iran-tensions-ease-auto-and-realty-stocks-gain-273229">Shanghai Composite Index</a> ended the morning session up just 0.06 per cent.

Investors in China are looking ahead to trade and economic growth data due this week, which is expected to shed more light on some early signs of economic improvement after the country logged its slowest pace of growth in nearly three decades in the third quarter.

Japan's <a href="https://www.wionews.com/business-economy/asian-shares-erase-losses-as-mideast-tensions-ease-oil-ticks-up-273093">Nikkei</a> was closed for a holiday. It fell sharply early last week when Iran attacked bases hosting US&nbsp;military in Iraq, only to rally almost a thousand points when the two countries stepped back from hostilities.

E-Mini futures for the <a href="https://www.wionews.com/business-economy/global-markets-stocks-march-back-to-record-highs-as-middle-east-tensions-ease-273438">S&amp;P 500</a> edged up 0.28 per cent, to be just off all-time highs.

The main event of the week will be the signing of the Phase One&nbsp;trade deal between the United States and China on Wednesday. The Trump administration has invited at least 200 people to the White House for the ceremony.

"A calmer geopolitical backdrop and the signing of the US‑China Phase One&nbsp;agreement is, on balance, favourable for global growth," said Joseph Capurso, an FX strategist at CBA.

"However, the 86-page Phase One&nbsp;<a href="https://www.wionews.com/world/chinas-vice-premier-liu-to-sign-us-trade-deal-next-week-in-washington-273242">agreement</a> has not yet been made public.&nbsp;There are doubts how comprehensive the deal is, and whether the Phase One&nbsp;agreement will be implemented in full by both governments."

Washington has reserved the right to reimpose tariffs if it judges China is not abiding by the deal.

"If there is any surprise from the Phase One&nbsp;deal&nbsp;that may actually cause some kind of volatility," said Tommy Xie, economist and head of greater China research at OCBC in Singapore.

"People are really focused on whether China is really committed to purchasing additional $200 billion in goods and services from the US&nbsp;over the next two years, there's not much commitment from China yet."

Xie said China's fourth-quarter and 2019 full-year GDP figures, due on Friday, are also likely to draw close scrutiny as investors look for signs that improvements seen in recent manufacturing surveys are reflected in broader growth and investment figures.

<a href="https://www.wionews.com/business-economy/sp-500-snaps-win-streak-as-middle-east-tensions-push-down-wall-street-272037">Wall Street</a> slipped and bonds rallied on Friday when data showed US&nbsp;nonfarm payrolls missed forecasts with a rise of 145,000, while wages and hours worked were soft.

"This is the perfect employment report for the Fed to continue to run the economy 'hot', as views on the natural rate of unemployment continue to drop," said Alan Ruskin, Deutsche Bank's global head of FX strategy. "This is perfect for risky assets."&nbsp;

On Monday, the euro gained 0.06 per cent&nbsp;to $1.1126, up from a $1.1083 low on Friday. Support comes in around $1.1060, while the recent peak at $1.1239 marks stiff resistance.

The dollar was firm on the yen at 109.61 but faces tough resistance around 109.70 where rallies have repeatedly failed in the past couple of months.

Against a basket of currencies, the dollar was stuck at 97.357, well within the recent trading range of 96.355 to 97.817.

The pound dipped 0.18 per cent&nbsp;to $1.3035 after <a href="https://www.wionews.com/business-economy/bank-of-england-sam-woods-warns-financial-sector-may-crackdown-273799">Bank of England</a> policymaker Gertjan Vlieghe said he will vote for a cut in interest rates later this month, barring an "imminent and significant" improvement in the growth data.

Spot gold slipped 0.37 per cent to $1,556.30 per ounce, having hit a seven-year top last week of $1,610.90 at the height of <a href="https://www.wionews.com/world/do-not-kill-your-protesters-us-president-trump-to-iranian-authorities-273818">Iran-US&nbsp;tensions</a>.

Oil prices were slightly firmer after suffering the first weekly loss since late November.&nbsp;

<a href="https://www.wionews.com/business-economy/oil-edges-above-65-as-middle-east-concerns-support-273441">Brent crude</a> futures were up 6 cents at $65.04 a barrel, while US&nbsp;crude added 10 cents to $59.14 a barrel.

Asian shares rose to new 19-month highs on Monday ahead of the expected signing on Phase One China-US trade deal, although markets have yet to see the details of the agreement.

Asian shares rose to new 19-month highs on Monday ahead of the expected signing on Phase One China-US trade deal, although markets have yet to see the details of the agreement. MSCI's broadest index of Asia-Pacific shares outside Japan was 0.47 per cent higher, touching its highest point since June 2018. Japanese markets were closed for a holiday. South Korea's trade-sensitive Kospi added 0.73 per cent and Hong Kong's Hang Seng was up 0.74 per cent, while Taiwan shares added 0.6 per cent in the first trading day after Taiwanese re-elected President Tsai Ing-wen by a landslide on Saturday. Mainland Chinese shares lagged the regional index after China's major equity indexes logged their sixth consecutive weekly rise last week, the longest such streak since the first quarter of 2019. The benchmark Shanghai Composite Index ended the morning session up just 0.06 per cent. Investors in China are looking ahead to trade and economic growth data due this week, which is expected to shed more light on some early signs of economic improvement after the country logged its slowest pace of growth in nearly three decades in the third quarter. Japan's Nikkei was closed for a holiday. It fell sharply early last week when Iran attacked bases hosting US military in Iraq, only to rally almost a thousand points when the two countries stepped back from hostilities. E-Mini futures for the S&P 500 edged up 0.28 per cent, to be just off all-time highs. The main event of the week will be the signing of the Phase One trade deal between the United States and China on Wednesday. The Trump administration has invited at least 200 people to the White House for the ceremony. "A calmer geopolitical backdrop and the signing of the US‑China Phase One agreement is, on balance, favourable for global growth," said Joseph Capurso, an FX strategist at CBA. "However, the 86-page Phase One agreement has not yet been made public. There are doubts how comprehensive the deal is, and whether the Phase One agreement will be implemented in full by both governments." Washington has reserved the right to reimpose tariffs if it judges China is not abiding by the deal. "If there is any surprise from the Phase One deal that may actually cause some kind of volatility," said Tommy Xie, economist and head of greater China research at OCBC in Singapore. "People are really focused on whether China is really committed to purchasing additional $200 billion in goods and services from the US over the next two years, there's not much commitment from China yet." Xie said China's fourth-quarter and 2019 full-year GDP figures, due on Friday, are also likely to draw close scrutiny as investors look for signs that improvements seen in recent manufacturing surveys are reflected in broader growth and investment figures. Wall Street slipped and bonds rallied on Friday when data showed US nonfarm payrolls missed forecasts with a rise of 145,000, while wages and hours worked were soft. "This is the perfect employment report for the Fed to continue to run the economy 'hot', as views on the natural rate of unemployment continue to drop," said Alan Ruskin, Deutsche Bank's global head of FX strategy. "This is perfect for risky assets." On Monday, the euro gained 0.06 per cent to $1.1126, up from a $1.1083 low on Friday. Support comes in around $1.1060, while the recent peak at $1.1239 marks stiff resistance. The dollar was firm on the yen at 109.61 but faces tough resistance around 109.70 where rallies have repeatedly failed in the past couple of months. Against a basket of currencies, the dollar was stuck at 97.357, well within the recent trading range of 96.355 to 97.817. The pound dipped 0.18 per cent to $1.3035 after Bank of England policymaker Gertjan Vlieghe said he will vote for a cut in interest rates later this month, barring an "imminent and significant" improvement in the growth data. Spot gold slipped 0.37 per cent to $1,556.30 per ounce, having hit a seven-year top last week of $1,610.90 at the height of Iran-US tensions. Oil prices were slightly firmer after suffering the first weekly loss since late November. Brent crude futures were up 6 cents at $65.04 a barrel, while US crude added 10 cents to $59.14 a barrel.

Asian shares rise ahead of US-China 'phase one' trade deal

Indian shares rose on Friday, tracking global markets, as <a href="https://www.wionews.com/opinions/could-iran-us-tensions-mean-troubled-waters-ahead-in-the-strait-of-hormuz-273207">US-Iran tensions</a> abated and investors looked for domestic cues ahead of corporate earnings.

The NSE&nbsp;Nifty&nbsp;50 index inched up 0.16 per cent&nbsp;to 12,234.25 by 0413 GMT, while the benchmark <a href="https://www.wionews.com/business-economy/sensex-jumps-634-points-as-us-iran-tensions-ease-auto-and-realty-stocks-gain-273229">S&amp;P BSE Sensex</a> was 0.14 per cent&nbsp;higher at 41,511.58. The&nbsp;Nifty&nbsp;50 and Sensex are headed for a weekly gain of around 0.5 per cent&nbsp;each.

Meanwhile, easing oil prices came as a relief for investors in India, the world's third-biggest oil consumer. <a href="https://www.wionews.com/india-news/fresh-hike-in-petrol-diesel-prices-in-india-273300">Brent crude</a> was headed for its first decline in six weeks.&nbsp;

"There were some panic and fears from the global market which is fading out domestic cues are also not that negative, in fact, they are improving," said Shrikant Chouhan, technical analyst at Kotak Securities.

<a href="https://www.wionews.com/business-economy/sensex-nifty-surge-as-easing-middle-east-tensions-steady-crude-prices-273111">MSCI's broadest</a> gauge of the world's stocks in 49 countries rose a tad to hit an all-time high and its index of <a href="https://www.wionews.com/business-economy/asian-shares-erase-losses-as-mideast-tensions-ease-oil-ticks-up-273093">Asia-Pacific shares</a> outside Japan rose 0.18 per cent.&nbsp;

In India, IT heavyweight Infosys Ltd rose 1.44 per cent&nbsp;ahead of its third-quarter earnings due later in the day.

Shares of Indian private sector lender Yes Bank Ltd rose 1.37 per cent&nbsp;ahead of a board meeting on Friday to discuss a capital raise as it looks to stave off the impact of bad loans.

Airline stocks Interglobe Aviation Ltd and SpiceJet Ltd reacted positively to lower oil prices, rising 1.68 per cent&nbsp;and 0.94 per cent&nbsp;respectively.

Bharti Infratel Ltd and Dr Reddy's Laboratories Ltd were among the top gainers on the&nbsp;Nifty, rising 2.13 per cent&nbsp;and 2.06 per cent&nbsp;each.&nbsp;

Indian shares rose on Friday, tracking global markets, as US-Iran tensions abated and investors looked for domestic cues ahead of corporate earnings. The NSE Nifty 50 index inched up 0.

Indian shares rose on Friday, tracking global markets, as US-Iran tensions abated and investors looked for domestic cues ahead of corporate earnings. The NSE Nifty 50 index inched up 0.16 per cent to 12,234.25 by 0413 GMT, while the benchmark S&P BSE Sensex was 0.14 per cent higher at 41,511.58. The Nifty 50 and Sensex are headed for a weekly gain of around 0.5 per cent each. Meanwhile, easing oil prices came as a relief for investors in India, the world's third-biggest oil consumer. Brent crude was headed for its first decline in six weeks. "There were some panic and fears from the global market which is fading out domestic cues are also not that negative, in fact, they are improving," said Shrikant Chouhan, technical analyst at Kotak Securities. MSCI's broadest gauge of the world's stocks in 49 countries rose a tad to hit an all-time high and its index of Asia-Pacific shares outside Japan rose 0.18 per cent. In India, IT heavyweight Infosys Ltd rose 1.44 per cent ahead of its third-quarter earnings due later in the day. Shares of Indian private sector lender Yes Bank Ltd rose 1.37 per cent ahead of a board meeting on Friday to discuss a capital raise as it looks to stave off the impact of bad loans. Airline stocks Interglobe Aviation Ltd and SpiceJet Ltd reacted positively to lower oil prices, rising 1.68 per cent and 0.94 per cent respectively. Bharti Infratel Ltd and Dr Reddy's Laboratories Ltd were among the top gainers on the Nifty, rising 2.13 per cent and 2.06 per cent each.

Nifty, Sensex headed for weekly gain as Mideast tensions ease

<a href="https://www.wionews.com/business-economy/global-markets-asian-shares-lower-as-investors-book-decade-end-profits-271229">Asian&nbsp;shares</a>&nbsp;gained for the fourth successive month in&nbsp;December&nbsp;as appetite for regional&nbsp;shares&nbsp;improved after the US&nbsp;and China agreed on a preliminary deal to end their 17-month long trade war.

The MSCI's broadest index of <a href="https://www.wionews.com/business-economy/global-markets-china-lifts-asian-shares-oil-up-on-drawdowns-mideast-tensions-270929">Asia-Pacific&nbsp;shares</a>&nbsp;gained 4.2 per cent&nbsp;in&nbsp;December, compared with the month's&nbsp;gains&nbsp;of about 3.4 per cent&nbsp;for the MSCI's&nbsp;global&nbsp;share index.

The United States and China agreed on a <a href="https://www.wionews.com/world/us-china-phase-one-trade-deal-to-be-signed-january-15-trump-271308">deal</a> on December 13 that reduces some US&nbsp;tariffs in exchange for what US&nbsp;officials said would be a big jump in Chinese purchases of American farm products and other goods. The deal is expected to be signed on January 15.

Asia-Pacific&nbsp;shares&nbsp;however,&nbsp;lagged behind&nbsp;global&nbsp;shares&nbsp;in the year and in the last decade.

MSCI's Asia-Pacific Index gained about 16 per cent&nbsp;in 2019 compared with 24 per cent&nbsp;for the World index.

New Zealand&nbsp;<a href="https://www.wionews.com/business-economy/gold-climbs-to-three-month-high-poised-for-best-year-since-2010-271231">shares</a>&nbsp;lead both 2019 and last decade's&nbsp;gains&nbsp;in the region. In US&nbsp;dollar terms, local&nbsp;shares&nbsp;gained 30.8 per cent&nbsp;in 2019 and 231 per cent&nbsp;in the last decade.

Asian shares gained for the fourth successive month in December as appetite for regional shares improved after the US and China agreed on a preliminary deal to end their 17-month long trade war.

Asian shares gained for the fourth successive month in December as appetite for regional shares improved after the US and China agreed on a preliminary deal to end their 17-month long trade war. The MSCI's broadest index of Asia-Pacific shares gained 4.2 per cent in December, compared with the month's gains of about 3.4 per cent for the MSCI's global share index. The United States and China agreed on a deal on December 13 that reduces some US tariffs in exchange for what US officials said would be a big jump in Chinese purchases of American farm products and other goods. The deal is expected to be signed on January 15. Asia-Pacific shares however, lagged behind global shares in the year and in the last decade. MSCI's Asia-Pacific Index gained about 16 per cent in 2019 compared with 24 per cent for the World index. New Zealand shares lead both 2019 and last decade's gains in the region. In US dollar terms, local shares gained 30.8 per cent in 2019 and 231 per cent in the last decade.

Though yearly gains lag, Asian shares outperformed global peers in December

Asian shares extended gains on Thursday and US stock futures jumped after China said it will hold trade talks with the United States in early October, raising hopes they can de-escalate their trade war before it inflicts further damage on the global economy.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.8%, while the Shanghai composite index surged 1.8%. Japan's Nikkei added 2.4%.

US stock futures reversed early losses and rose 1%.

The Chinese yuan jumped versus the dollar in offshore trade, while safe-haven assets such as gold and the yen fell.

China's confirmation of trade talks added to upbeat geopolitical news overnight. A parliamentary vote in Britain put the brakes on the nation's no-deal exit from the European Union, Hong Kong withdrew a contentious extradition bill that sparked recent protests and political turmoil in Italy appeared to be easing.

China's Commerce Ministry said its trade team will consult with their US counterparts in mid-September&nbsp;in preparation for negotiations in early October, hinting at progress in reducing trade friction.

Both sides had agreed to take actual actions to create favourable conditions, the ministry added, without giving more details.

"Since yesterday, there has been a limited downside in markets because of what happened in Hong Kong, but now the US-China talks are the story," said Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui Asset Management Co in Tokyo.

"It's the same about Brexit, which means less downside risk."

Hong Kong shares erased early losses to rise 0.5%. They had jumped in afternoon trade on Wednesday after leader Carrie Lam said she was withdrawing an extradition bill that had triggered months of often violent protests in the Asian financial hub.

In currency markets, sterling held onto gains against the dollar in Asia after rallying the most in more than five months on Wednesday after lawmakers voted to prevent Prime Minister Boris Johnson taking Britain out of the European Union without a deal on Oct. 31.

But, more than three years since the United Kingdom voted narrowly to leave the EU, the outcome of Brexit is still unclear, with possible outcomes ranging from a crash out of the EU to abandoning the whole endeavour.

Against the offshore yuan, the dollar fell 0.2% to 7.1324 yuan.

US Treasury yields extended gains in Asia and the yield curve steepened, both signs that investors were willing to take on riskier assets.

The 10-year yield rose to 1.4758%, while two-year yields rose to 1.4519%.

The spread between two- and 10-year Treasury yields, the most commonly used measure of the yield curve, rose to its highest since Aug&nbsp;21 on Wednesday but narrowed slightly in Asian trade.

The curve inverted on Aug 14 for the first time since 2007 when long-term yields traded below short-term yields, which is a widely accepted indicator of the coming recession.

US West Texas Intermediate crude also reversed losses to trade up 0.2%.

Asian shares extended gains on Thursday and US stock futures jumped after China said it will hold trade talks with the United States in early October, raising hopes they can de-escalate their trade war before it inflicts further damage on the global economy.

Asian shares extended gains on Thursday and US stock futures jumped after China said it will hold trade talks with the United States in early October, raising hopes they can de-escalate their trade war before it inflicts further damage on the global economy. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.8%, while the Shanghai composite index surged 1.8%. Japan's Nikkei added 2.4%. US stock futures reversed early losses and rose 1%. The Chinese yuan jumped versus the dollar in offshore trade, while safe-haven assets such as gold and the yen fell. China's confirmation of trade talks added to upbeat geopolitical news overnight. A parliamentary vote in Britain put the brakes on the nation's no-deal exit from the European Union, Hong Kong withdrew a contentious extradition bill that sparked recent protests and political turmoil in Italy appeared to be easing. China's Commerce Ministry said its trade team will consult with their US counterparts in mid-September in preparation for negotiations in early October, hinting at progress in reducing trade friction. Both sides had agreed to take actual actions to create favourable conditions, the ministry added, without giving more details. "Since yesterday, there has been a limited downside in markets because of what happened in Hong Kong, but now the US-China talks are the story," said Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui Asset Management Co in Tokyo. "It's the same about Brexit, which means less downside risk." Hong Kong shares erased early losses to rise 0.5%. They had jumped in afternoon trade on Wednesday after leader Carrie Lam said she was withdrawing an extradition bill that had triggered months of often violent protests in the Asian financial hub. In currency markets, sterling held onto gains against the dollar in Asia after rallying the most in more than five months on Wednesday after lawmakers voted to prevent Prime Minister Boris Johnson taking Britain out of the European Union without a deal on Oct. 31. But, more than three years since the United Kingdom voted narrowly to leave the EU, the outcome of Brexit is still unclear, with possible outcomes ranging from a crash out of the EU to abandoning the whole endeavour. Against the offshore yuan, the dollar fell 0.2% to 7.1324 yuan. US Treasury yields extended gains in Asia and the yield curve steepened, both signs that investors were willing to take on riskier assets. The 10-year yield rose to 1.4758%, while two-year yields rose to 1.4519%. The spread between two- and 10-year Treasury yields, the most commonly used measure of the yield curve, rose to its highest since Aug 21 on Wednesday but narrowed slightly in Asian trade. The curve inverted on Aug 14 for the first time since 2007 when long-term yields traded below short-term yields, which is a widely accepted indicator of the coming recession. US West Texas Intermediate crude also reversed losses to trade up 0.2%.

Confirmation of US: China trade talks buoys global shares, investor spirit

<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

Asian share markets were painted red on Thursday as recession concerns sent bond yields spiralling lower across the globe, overwhelming central bank efforts to calm frayed nerves.

Sterling was also hit by another bout of Brexit blues after a round of votes in the UK parliament failed to produce any new plan to manage its divorce from the European Union.

A Reuters report that the United States and China had made progress in all areas in trade talks had a little obvious impact since sticking points still remained and there was no definite timetable for a deal.

MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.3 per cent, with South Korea down 0.7 per cent and Shanghai blue chips slipping 0.3 per cent.

Japan's Nikkei fell 1.7 per cent. US stocks could not escape the malaise with E-Mini futures for the S&amp;P 500 off 0.5 per cent.

Worries that the inversion of the US Treasury curve signalled a future recession only deepened as 10-year yields fell to a fresh 15-month low at 2.34 per cent.

"We think that the ongoing flattening, or outright inversion, of the curve is a bad sign for equities, as it usually has been in the past," said Oliver Jones, markets economist at Capital Economics.

"Arguments that the yield curve is no longer a reliable indicator seem to resurface every time it inverts, only to be subsequently proved wrong."

The latest lunge lower was led by German bunds where 10-year yields dived deeper into negative territory after European Central Bank President Mario Draghi said a hike in interest rates could be further delayed.

Plans to mitigate the side-effects of negative interest rates could also be considered, suggesting the central bank was preparing for an extended period below zero.

That shift came hot on the heels of a dovish surprise on Wednesday from the Reserve Bank of New Zealand, which abandoned its neutral bias to say the next rate move would likely be down.

Yields in both New Zealand and neighbour Australia quickly sank to record lows in response.

The RBNZ explicitly cited all the easing moves by other central banks as a reason for its turnaround since they had put unwanted upward pressure on the local dollar.

Easing goes global

That is one reason markets are wagering the Reserve Bank of Australia will also be forced to cut rates, simply to stop its currency from appreciating. Policy easing then becomes a self-fulfilling cycle across the world.

"The continued dovish shift by G7 central banks, ongoing support by the Chinese authorities, and the move by the RBNZ will keep pressure on the RBA to also move in the same direction, however reluctantly," said Su-Lin Ong, head of Australian and New Zealand strategy at RBC Capital Markets.

"It is, essentially, a global policy cycle."

The RBNZ's action had the desired effect on its currency, which was pinned at $0.6786 after diving 1.6 per cent overnight. The Aussie was on the defensive at $0.7078.

Draghi's comments likewise tugged the euro back to $1.1245, and left the US dollar firmer against a basket of its competitors at 96.909.

Only the yen held its own thanks to its safe-haven status and firmed to 110.20 per dollar.

Sterling had its own troubles as an offer by British Prime Minister Theresa May to quit to get her European Union deal through parliament failed, leaving uncertainty hanging over the Brexit process.

That left the pound down at $1.3170, having been as high as $1.3269 at one point on Wednesday.

In commodity markets, palladium was the focus of attention after sliding 7 per cent on Wednesday as its meteoric rally finally ran into profit-taking. It was down 0.4 per cent on Thursday.

Gold was relatively sedated at $1,308.37 per ounce.

Oil prices nursed modest losses after data showed US crude inventories grew more than expected last week as a Texas chemical spill hampered exports.

US crude was last down 21 cents at $59.14 a barrel, while Brent crude futures lost 21 cents to $67.62.

Asian share markets were painted red on Thursday as recession concerns sent bond yields spiralling lower across the globe, overwhelming central bank efforts to calm frayed nerves.

Asian share markets were painted red on Thursday as recession concerns sent bond yields spiralling lower across the globe, overwhelming central bank efforts to calm frayed nerves. Sterling was also hit by another bout of Brexit blues after a round of votes in the UK parliament failed to produce any new plan to manage its divorce from the European Union. A Reuters report that the United States and China had made progress in all areas in trade talks had a little obvious impact since sticking points still remained and there was no definite timetable for a deal. MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.3 per cent, with South Korea down 0.7 per cent and Shanghai blue chips slipping 0.3 per cent. Japan's Nikkei fell 1.7 per cent. US stocks could not escape the malaise with E-Mini futures for the S&P 500 off 0.5 per cent. Worries that the inversion of the US Treasury curve signalled a future recession only deepened as 10-year yields fell to a fresh 15-month low at 2.34 per cent. "We think that the ongoing flattening, or outright inversion, of the curve is a bad sign for equities, as it usually has been in the past," said Oliver Jones, markets economist at Capital Economics. "Arguments that the yield curve is no longer a reliable indicator seem to resurface every time it inverts, only to be subsequently proved wrong." The latest lunge lower was led by German bunds where 10-year yields dived deeper into negative territory after European Central Bank President Mario Draghi said a hike in interest rates could be further delayed. Plans to mitigate the side-effects of negative interest rates could also be considered, suggesting the central bank was preparing for an extended period below zero. That shift came hot on the heels of a dovish surprise on Wednesday from the Reserve Bank of New Zealand, which abandoned its neutral bias to say the next rate move would likely be down. Yields in both New Zealand and neighbour Australia quickly sank to record lows in response. The RBNZ explicitly cited all the easing moves by other central banks as a reason for its turnaround since they had put unwanted upward pressure on the local dollar. Easing goes global That is one reason markets are wagering the Reserve Bank of Australia will also be forced to cut rates, simply to stop its currency from appreciating. Policy easing then becomes a self-fulfilling cycle across the world. "The continued dovish shift by G7 central banks, ongoing support by the Chinese authorities, and the move by the RBNZ will keep pressure on the RBA to also move in the same direction, however reluctantly," said Su-Lin Ong, head of Australian and New Zealand strategy at RBC Capital Markets. "It is, essentially, a global policy cycle." The RBNZ's action had the desired effect on its currency, which was pinned at $0.6786 after diving 1.6 per cent overnight. The Aussie was on the defensive at $0.7078. Draghi's comments likewise tugged the euro back to $1.1245, and left the US dollar firmer against a basket of its competitors at 96.909. Only the yen held its own thanks to its safe-haven status and firmed to 110.20 per dollar. Sterling had its own troubles as an offer by British Prime Minister Theresa May to quit to get her European Union deal through parliament failed, leaving uncertainty hanging over the Brexit process. That left the pound down at $1.3170, having been as high as $1.3269 at one point on Wednesday. In commodity markets, palladium was the focus of attention after sliding 7 per cent on Wednesday as its meteoric rally finally ran into profit-taking. It was down 0.4 per cent on Thursday. Gold was relatively sedated at $1,308.37 per ounce. Oil prices nursed modest losses after data showed US crude inventories grew more than expected last week as a Texas chemical spill hampered exports. US crude was last down 21 cents at $59.14 a barrel, while Brent crude futures lost 21 cents to $67.62.

Bond yields spiral lower, take stocks along for the ride

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