New escalation has been seen in US-China battle. China has responded to Huawei trade ban. Watch this video to get complete details.

New escalation in US-China battle, China responds to Huawei trade ban

Washington's policy for 50 years has been designed to manage China's rise to great power status peacefully

Has the US-China cold war now begun?

The ties between Washington & Beijing are constantly getting strained, Do American firms in China looking to exit?

Ties between Washington & Beijing getting strained, American firms in China looking to exit?

Global markets heaved a sigh of relief when the world's two largest economies signed the first phase of the trade truce, ending an 18-month standoff that feared a further slowdown in the global economy. The deal didn't end the hundreds of billions of dollars of tariffs imposed by both the countries but some reliefs were provided to the Chinese.

The trade war first started when US President Donald Trump accused China of unfair trade practices and intellectual property theft. So, let's look at the key issues and see whether the phase 1 of this deal address them or not.

Tariffs

The good news for China is that the US agreed to reduce half of the total tariffs imposed on its goods in September 2019. However, both countries have not rolled back enormous tariffs imposed on each other's exports. This means Washington's tariffs on $360 billion Chinese goods and Beijing's $110 billion on US goods will continue. The US also agreed that it will not impose tariffs that were supposed to be put in place on December 15.

Intellectual property

China has long been accused of intellectual property theft even by the previous US administrations and was one of the main reasons for the confrontation. This truce deals with intellectual property issue as China has committed to protect trademark, patents and copyrights. China also vowed of stronger criminal and civil laws to punish intellectual property thefts and counterfeiting.

The deal also ensures that US-based pharmaceutical industries get more shields from China as far as patents are concerned.

American businesses have often complained of surrendering technology and trade secrets to China as a necessity to do business in the country. China pledged to eliminate any forced transfer of technology which includes removing pressures of licensing and administrative approvals.

Purchase of American goods

Through this deal, the US President wanted to push US exports to China which is significantly lower than Chinese exports to the US. China vowed that it will purchase $200 billion worth of goods from the US in the next two years. The list of purchase includes $32 billion of agricultural products, $52.4 billion of energy exports, $77.7 billion worth manufactured products and $37.9 billion of services.

China, however, claims that the buying will depend on the market demand and some analysts and experts are also sceptical whether American manufacturers and farmers can produce enough to meet Chinese demands.

China has also relaxed a number of health standards which earlier were used to prevent American imports. These changes will benefit US products, such as dairy, meat, seafood, poultry, among others.

Subsidies and cybersecurity

Trump has complained of China offering massive industrial subsidies to its domestic firms, making it difficult for American businesses to compete. These subsidies were especially granted to solar panel and steel industries. It was a major issue of conflict but the truce has no word on these subsidies.

The trade deal also doesn't comment on other concerning issues such as cybersecurity and Chinese control of cloud computing and data storage.

Currency manipulations

Ahead of signing of the first-phase deal, the US removed its currency manipulator tag from China. In the deal, China pledged that it will not manipulate its currency for gaining unfair trade advantage, a commitment the country made for years to G20 nations and are its obligations to the International Monetary Fund (IMF).

The US treasury earlier said that China has made “enforceable commitments to refrain from competitive devaluation” and said that it would publish relevant data on exchange rates and external balances.

Access to financial services

With the deal, the US says that its financial services companies have got a better access to Chinese markets. The deal binds China to address concerns of foreign equity limitations and discriminatory regulatory requirements.

Interestingly, China already started giving foreign financial companies more room from 2017. Also, US payment companies' entry in the Chinese market will not be easy as the market is majorly dominated by domestic firms.

Dispute resolving mechanism

The deal also says that future trade disputes be settled through bilateral consultations, which will initiate from working level and escalate to top-tier.

If bilateral engagement doesn't solve the differences, then the affected party can impose penalties or tariffs and the other country cannot in retaliation put more tariffs. In such an act of retaliation, any party can give written notice and the deal could be withdrawn.

Global markets heaved a sigh of relief when the world's two largest economies signed the first phase of the trade truce, ending an 18-month standoff that feared a further slowdown in the global economy.

Global markets heaved a sigh of relief when the world's two largest economies signed the first phase of the trade truce, ending an 18-month standoff that feared a further slowdown in the global economy. The deal didn't end the hundreds of billions of dollars of tariffs imposed by both the countries but some reliefs were provided to the Chinese. The trade war first started when US President Donald Trump accused China of unfair trade practices and intellectual property theft. So, let's look at the key issues and see whether the phase 1 of this deal address them or not. Tariffs The good news for China is that the US agreed to reduce half of the total tariffs imposed on its goods in September 2019. However, both countries have not rolled back enormous tariffs imposed on each other's exports. This means Washington's tariffs on $360 billion Chinese goods and Beijing's $110 billion on US goods will continue. The US also agreed that it will not impose tariffs that were supposed to be put in place on December 15. Intellectual property China has long been accused of intellectual property theft even by the previous US administrations and was one of the main reasons for the confrontation. This truce deals with intellectual property issue as China has committed to protect trademark, patents and copyrights. China also vowed of stronger criminal and civil laws to punish intellectual property thefts and counterfeiting. The deal also ensures that US-based pharmaceutical industries get more shields from China as far as patents are concerned. American businesses have often complained of surrendering technology and trade secrets to China as a necessity to do business in the country. China pledged to eliminate any forced transfer of technology which includes removing pressures of licensing and administrative approvals. Purchase of American goods Through this deal, the US President wanted to push US exports to China which is significantly lower than Chinese exports to the US. China vowed that it will purchase $200 billion worth of goods from the US in the next two years. The list of purchase includes $32 billion of agricultural products, $52.4 billion of energy exports, $77.7 billion worth manufactured products and $37.9 billion of services. China, however, claims that the buying will depend on the market demand and some analysts and experts are also sceptical whether American manufacturers and farmers can produce enough to meet Chinese demands. China has also relaxed a number of health standards which earlier were used to prevent American imports. These changes will benefit US products, such as dairy, meat, seafood, poultry, among others. Subsidies and cybersecurity Trump has complained of China offering massive industrial subsidies to its domestic firms, making it difficult for American businesses to compete. These subsidies were especially granted to solar panel and steel industries. It was a major issue of conflict but the truce has no word on these subsidies. The trade deal also doesn't comment on other concerning issues such as cybersecurity and Chinese control of cloud computing and data storage. Currency manipulations Ahead of signing of the first-phase deal, the US removed its currency manipulator tag from China. In the deal, China pledged that it will not manipulate its currency for gaining unfair trade advantage, a commitment the country made for years to G20 nations and are its obligations to the International Monetary Fund (IMF). The US treasury earlier said that China has made “enforceable commitments to refrain from competitive devaluation” and said that it would publish relevant data on exchange rates and external balances. Access to financial services With the deal, the US says that its financial services companies have got a better access to Chinese markets. The deal binds China to address concerns of foreign equity limitations and discriminatory regulatory requirements. Interestingly, China already started giving foreign financial companies more room from 2017. Also, US payment companies' entry in the Chinese market will not be easy as the market is majorly dominated by domestic firms. Dispute resolving mechanism The deal also says that future trade disputes be settled through bilateral consultations, which will initiate from working level and escalate to top-tier. If bilateral engagement doesn't solve the differences, then the affected party can impose penalties or tariffs and the other country cannot in retaliation put more tariffs. In such an act of retaliation, any party can give written notice and the deal could be withdrawn.

US China trade deal: What were the key issues and are they resolved?

&nbsp;A broad gauge of <a href="https://www.wionews.com/business-economy/global-markets-china-lifts-asian-shares-oil-up-on-drawdowns-mideast-tensions-270929">Asian share </a>markets rose to an 18-month high on Monday as Chinese equities gained, while oil touched three-month highs on a combination of US&nbsp;crude inventory drawdowns, trade optimism and unrest in the Middle East.

But European shares were expected to open lower as investors take a breather from recent rallies.

In early European trade, the pan-region Euro Stoxx 50 futures were down 0.16 per cent&nbsp;at 3,764, German DAX futures were down 0.22 per cent&nbsp;at 13,291.5 and FTSE futures were down 0.11&nbsp;per cent&nbsp;at 7,578.5.

MSCI's broadest index of Asia-Pacific shares outside Japan rose to its highest since June 19, 2018, before trimming gains. It was last up by 0.05 per cent.

Chinese blue chips, which had started the day lower, were up 1.13&nbsp;per cent&nbsp;in afternoon trade, bolstered by a report that 2019 retail sales are forecast to rise 8&nbsp;per cent&nbsp;and expectations that a new benchmark for floating-rate loans could lower borrowing costs and boost flagging economic growth.

But Australian shares finished 0.25 per cent&nbsp;lower as investors continued to consolidate recent gains.

Japan's Nikkei stock index finished its last trading day of the year down 0.76 per cent. The index gained 18.2per cent&nbsp;in 2019 after dropping 12.8 per cent&nbsp;last year. Easing trade war worries and reduced uncertainty over the United Kingdom's plans to leave the European Union after British elections returned a strong Conservative majority have offered a lift to global equities this month, helping the broad MSCI Asia index rise more than 6 per cent&nbsp;and putting it on track for its strongest month since January.

Kay Van-Petersen, the global macro strategist at <a href="https://www.wionews.com/business-economy/global-markets-china-lifts-asian-shares-oil-up-on-drawdowns-mideast-tensions-270929">Saxo Capital Markets</a>, said that limited liquidity near the year-end and the easing of US-China trade and Brexit uncertainties has "just left us drifting up higher. So even if there is a pullback.&nbsp;I don't think it's going to be significant by any means."

Global equity markets gained late last week, with the S&amp;P 500 and the Dow Jones Industrial Average closing at records on Friday.

The Dow ended 0.08 per cent&nbsp;higher at 28,645.26 and the S&amp;P edged up just 0.11 points to 3,240.02. The Nasdaq Composite lost steam at the close, falling 0.17 per cent&nbsp;to 9,006.62.

Oil also gained on Friday, with prices posting their fourth consecutive weekly gain to steady around their highest in three months.

On Monday, global benchmark Brent crude was up 0.31per cent&nbsp;to $68.37 per barrel, while US&nbsp;<a href="https://www.wionews.com/business-economy/crude-oil-prices-fall-1-on-fears-for-global-economy-233148">West Texas Intermediate</a> crude added 0.13 per cent&nbsp;to $61.80, reversing an earlier decline.

Oil's gains followed news of <a href="https://www.wionews.com/world/25-isis-terrorists-killed-in-us-airstrikes-in-iraq-175533">US&nbsp;airstrikes</a> in Iraq and Syria against Kataib Hezbollah, an Iran-backed militia group. US&nbsp;officials said Sunday that the attacks were successful, but warned that "additional actions" may be taken to defend US&nbsp;interests.

But Stephen Innes, strategist at AxiTrader, said that the rise of shale oil production in the United States would offset any geopolitical risks.

"Shale can really ramp up more volumes to accommodate any shortfall that could possibly be triggered by an escalation in Syria," he said, adding that an upsurge in populism in Iraq posed a larger risk to markets.

Iraq's oil ministry said on Sunday that the halting of oil production at Iraq's southern Nassiriya oilfield by protestors would not affect the country's exports and operations.

Oil prices were also supported by a bigger-than-expected decline in crude inventories in the United States, the world's biggest fuel consumer. Stockpiles fell by 5.5 million barrels in the week to December&nbsp;20, far exceeding a 1.7-million-barrel drop forecast in a Reuters poll, the government data showed on Friday.

Gold also continued its run-up, boosted by a weak dollar, after posting its best week in more than four months on Friday amid thin trading volumes.

The precious metal on Monday rose 0.3 per cent&nbsp;to $1,515 per ounce on the spot market.

In the currency markets, the dollar was 0.27&nbsp;per cent&nbsp;lower against the yen at 109.11 and the euro was up 0.23&nbsp;per cent&nbsp;on the day at $1.1201.

The dollar index, which tracks the greenback against a basket of six major currencies, was down 0.14&nbsp;per cent&nbsp;to 96.786.

The yield on benchmark 10-year Treasury notes was at 1.877 per cent&nbsp;compared with its US&nbsp;close of 1.873&nbsp;per cent&nbsp;on Friday, while the two-year yield edged down to 1.5812 per cent&nbsp;compared with a US&nbsp;close of 1.589 per cent.

A broad gauge of Asian share markets rose to an 18-month high on Monday as Chinese equities gained, while oil touched three-month highs on a combination of US crude inventory drawdowns, trade optimism and unrest in the Middle East.

A broad gauge of Asian share markets rose to an 18-month high on Monday as Chinese equities gained, while oil touched three-month highs on a combination of US crude inventory drawdowns, trade optimism and unrest in the Middle East. But European shares were expected to open lower as investors take a breather from recent rallies. In early European trade, the pan-region Euro Stoxx 50 futures were down 0.16 per cent at 3,764, German DAX futures were down 0.22 per cent at 13,291.5 and FTSE futures were down 0.11 per cent at 7,578.5. MSCI's broadest index of Asia-Pacific shares outside Japan rose to its highest since June 19, 2018, before trimming gains. It was last up by 0.05 per cent. Chinese blue chips, which had started the day lower, were up 1.13 per cent in afternoon trade, bolstered by a report that 2019 retail sales are forecast to rise 8 per cent and expectations that a new benchmark for floating-rate loans could lower borrowing costs and boost flagging economic growth. But Australian shares finished 0.25 per cent lower as investors continued to consolidate recent gains. Japan's Nikkei stock index finished its last trading day of the year down 0.76 per cent. The index gained 18.2per cent in 2019 after dropping 12.8 per cent last year. Easing trade war worries and reduced uncertainty over the United Kingdom's plans to leave the European Union after British elections returned a strong Conservative majority have offered a lift to global equities this month, helping the broad MSCI Asia index rise more than 6 per cent and putting it on track for its strongest month since January. Kay Van-Petersen, the global macro strategist at Saxo Capital Markets, said that limited liquidity near the year-end and the easing of US-China trade and Brexit uncertainties has "just left us drifting up higher. So even if there is a pullback. I don't think it's going to be significant by any means." Global equity markets gained late last week, with the S&P 500 and the Dow Jones Industrial Average closing at records on Friday. The Dow ended 0.08 per cent higher at 28,645.26 and the S&P edged up just 0.11 points to 3,240.02. The Nasdaq Composite lost steam at the close, falling 0.17 per cent to 9,006.62. Oil also gained on Friday, with prices posting their fourth consecutive weekly gain to steady around their highest in three months. On Monday, global benchmark Brent crude was up 0.31per cent to $68.37 per barrel, while US West Texas Intermediate crude added 0.13 per cent to $61.80, reversing an earlier decline. Oil's gains followed news of US airstrikes in Iraq and Syria against Kataib Hezbollah, an Iran-backed militia group. US officials said Sunday that the attacks were successful, but warned that "additional actions" may be taken to defend US interests. But Stephen Innes, strategist at AxiTrader, said that the rise of shale oil production in the United States would offset any geopolitical risks. "Shale can really ramp up more volumes to accommodate any shortfall that could possibly be triggered by an escalation in Syria," he said, adding that an upsurge in populism in Iraq posed a larger risk to markets. Iraq's oil ministry said on Sunday that the halting of oil production at Iraq's southern Nassiriya oilfield by protestors would not affect the country's exports and operations. Oil prices were also supported by a bigger-than-expected decline in crude inventories in the United States, the world's biggest fuel consumer. Stockpiles fell by 5.5 million barrels in the week to December 20, far exceeding a 1.7-million-barrel drop forecast in a Reuters poll, the government data showed on Friday. Gold also continued its run-up, boosted by a weak dollar, after posting its best week in more than four months on Friday amid thin trading volumes. The precious metal on Monday rose 0.3 per cent to $1,515 per ounce on the spot market. In the currency markets, the dollar was 0.27 per cent lower against the yen at 109.11 and the euro was up 0.23 per cent on the day at $1.1201. The dollar index, which tracks the greenback against a basket of six major currencies, was down 0.14 per cent to 96.786. The yield on benchmark 10-year Treasury notes was at 1.877 per cent compared with its US close of 1.873 per cent on Friday, while the two-year yield edged down to 1.5812 per cent compared with a US close of 1.589 per cent.

Global Markets: Asian shares at 18-month highs; Nikkei finishes year up 18%

A broad gauge of <a href="https://www.wionews.com/business-economy/asian-shares-near-18-month-high-bask-in-trade-deal-afterglow-269696">Asian share</a> markets rose to the highest in 18 months on Monday as Chinese equities gained, while oil hovered near three-month highs on a combination of US&nbsp;crude inventory drawdowns, trade optimism and unrest in the Middle East.

MSCI's broadest index of Asia-Pacific shares outside Japan was last up 0.2 per cent, turning around from an earlier loss. The index rose to its highest since June 19.

Chinese blue chips, which had started the day lower, were up 1.24&nbsp;per cent at the midday break, bolstered by a report that 2019 retail sales are forecast to rise 8&nbsp;per cent and expectations that a new benchmark for floating-rate loans could lower borrowing costs and boost flagging economic growth.

But Australian shares remained down 0.44 per cent as investors continued to consolidate recent gains. Japan's Nikkei stock index slid 0.58 per cent. Easing trade war worries and reduced uncertainty over the United Kingdom's plans to leave the European Union after British elections returned a strong Conservative majority have offered a lift to global equities this month, helping the broad MSCI Asia index rise more than 6 per cent and putting it on track for its strongest month since January.

Kay Van-Petersen, a global macro strategist at <a href="https://www.wionews.com/business-economy/asian-shares-climb-as-trump-says-us-china-trade-deal-near-264827">Saxo Capital Markets</a>, said that limited liquidity near the year-end and the easing of US-China trade and Brexit uncertainties has "just left us drifting up higher. So even if there is a pullback&nbsp;I don't think it's going to be significant by any means."

Global equity markets gained late last week, with the S&amp;P 500 and the Dow Jones Industrial Average closing at records on Friday.

The Dow ended 0.08per cent higher at 28,645.26 and the S&amp;P edged up just 0.11 points to 3,240.02. The Nasdaq Composite lost steam at the close, falling 0.17&nbsp;per cent&nbsp;to 9,006.62.

Oil also gained on Friday, with prices posting their fourth consecutive weekly gain to steady around their highest in three months.

On Monday, global benchmark Brent crude was up 0.18&nbsp;per cent to $68.28 per barrel, while US&nbsp;West Texas Intermediate crude added 0.05% to $61.75, reversing an earlier decline.

Oil's gains followed news of US&nbsp;airstrikes in Iraq and Syria against Kataib Hezbollah, an Iran-backed militia group. US&nbsp;officials said Sunday that the attacks were successful, but warned that "additional actions" may be taken to defend US&nbsp;interests.

But Stephen Innes, strategist at AxiTrader, said that the rise of shale oil production in the United States would offset any geopolitical risks.

"Shale can really ramp up more volumes to accommodate any shortfall that could possibly be triggered by an escalation in Syria," he said, adding that an upsurge in populism in Iraq posed a larger risk to markets.

Iraq's oil ministry said on Sunday that the halting of oil production at Iraq's southern Nassiriya oilfield by protestors would not affect the country's exports and operations.

Oil prices were also supported by a bigger-than-expected decline in crude inventories in the United States, the world's biggest fuel consumer. Stockpiles fell by 5.5 million barrels in the week to December&nbsp;20, far exceeding a 1.7-million-barrel drop forecast in a Reuters poll, the government data showed on Friday.

Gold also continued its run-up, after posting its best week in more than four months on Friday amid thin trading volumes, in a sign that some investors continue to see risks to global growth and US-China trade.

The precious metal on Monday rose 0.33&nbsp;per cent to $1,515.40 per ounce on the spot market.

In the currency market, the dollar was 0.30&nbsp;per cent lower against the yen at 109.08 and the euro was up 0.27 per cent on the day at $1.1194.

The dollar index, which tracks the greenback against a basket of six major currencies, was down 0.2&nbsp;per cent &nbsp;to 96.736.

The yield on benchmark 10-year Treasury notes was at 1.8752 per cent &nbsp;compared with its US&nbsp;close of 1.873&nbsp;per cent &nbsp;on Friday, while the two-year yield edged down to 1.5832 per cent&nbsp;compared with a US&nbsp;close of 1.589 per cent .

A broad gauge of Asian share markets rose to the highest in 18 months on Monday as Chinese equities gained, while oil hovered near three-month highs on a combination of US crude inventory drawdowns, trade optimism and unrest in the Middle East.

A broad gauge of Asian share markets rose to the highest in 18 months on Monday as Chinese equities gained, while oil hovered near three-month highs on a combination of US crude inventory drawdowns, trade optimism and unrest in the Middle East. MSCI's broadest index of Asia-Pacific shares outside Japan was last up 0.2 per cent, turning around from an earlier loss. The index rose to its highest since June 19. Chinese blue chips, which had started the day lower, were up 1.24 per cent at the midday break, bolstered by a report that 2019 retail sales are forecast to rise 8 per cent and expectations that a new benchmark for floating-rate loans could lower borrowing costs and boost flagging economic growth. But Australian shares remained down 0.44 per cent as investors continued to consolidate recent gains. Japan's Nikkei stock index slid 0.58 per cent. Easing trade war worries and reduced uncertainty over the United Kingdom's plans to leave the European Union after British elections returned a strong Conservative majority have offered a lift to global equities this month, helping the broad MSCI Asia index rise more than 6 per cent and putting it on track for its strongest month since January. Kay Van-Petersen, a global macro strategist at Saxo Capital Markets, said that limited liquidity near the year-end and the easing of US-China trade and Brexit uncertainties has "just left us drifting up higher. So even if there is a pullback I don't think it's going to be significant by any means." Global equity markets gained late last week, with the S&P 500 and the Dow Jones Industrial Average closing at records on Friday. The Dow ended 0.08per cent higher at 28,645.26 and the S&P edged up just 0.11 points to 3,240.02. The Nasdaq Composite lost steam at the close, falling 0.17 per cent to 9,006.62. Oil also gained on Friday, with prices posting their fourth consecutive weekly gain to steady around their highest in three months. On Monday, global benchmark Brent crude was up 0.18 per cent to $68.28 per barrel, while US West Texas Intermediate crude added 0.05% to $61.75, reversing an earlier decline. Oil's gains followed news of US airstrikes in Iraq and Syria against Kataib Hezbollah, an Iran-backed militia group. US officials said Sunday that the attacks were successful, but warned that "additional actions" may be taken to defend US interests. But Stephen Innes, strategist at AxiTrader, said that the rise of shale oil production in the United States would offset any geopolitical risks. "Shale can really ramp up more volumes to accommodate any shortfall that could possibly be triggered by an escalation in Syria," he said, adding that an upsurge in populism in Iraq posed a larger risk to markets. Iraq's oil ministry said on Sunday that the halting of oil production at Iraq's southern Nassiriya oilfield by protestors would not affect the country's exports and operations. Oil prices were also supported by a bigger-than-expected decline in crude inventories in the United States, the world's biggest fuel consumer. Stockpiles fell by 5.5 million barrels in the week to December 20, far exceeding a 1.7-million-barrel drop forecast in a Reuters poll, the government data showed on Friday. Gold also continued its run-up, after posting its best week in more than four months on Friday amid thin trading volumes, in a sign that some investors continue to see risks to global growth and US-China trade. The precious metal on Monday rose 0.33 per cent to $1,515.40 per ounce on the spot market. In the currency market, the dollar was 0.30 per cent lower against the yen at 109.08 and the euro was up 0.27 per cent on the day at $1.1194. The dollar index, which tracks the greenback against a basket of six major currencies, was down 0.2 per cent to 96.736. The yield on benchmark 10-year Treasury notes was at 1.8752 per cent compared with its US close of 1.873 per cent on Friday, while the two-year yield edged down to 1.5832 per cent compared with a US close of 1.589 per cent .

Global Markets: China lifts Asian shares; oil up on drawdowns, Mideast tensions

Japanese big manufacturers' business mood sank to a near seven-year low in the fourth quarter, a closely watched central bank survey showed, as the US-China trade war and soft global demand weighed on the export-reliant economy.

Companies expect conditions to remain unchanged or even worsen three months ahead, the Bank of Japan's "tankan" quarterly survey showed, suggesting that the fallout from the trade conflict could hurt broader sectors of the economy.

But there were some bright signs. Non-manufacturers' sentiment appeared to weather the hit from October's sales tax hike with companies maintaining robust capital expenditure plans, reinforcing market expectations the BOJ will hold off on expanding stimulus at next week's rate review.

"The tankan suggests that the economy is slowing rather than collapsing so the BOJ is unlikely to cut interest rates at next week's meeting," said Marcel Thieliant, senior Japan economist at Capital Economics.

The headline index for big manufacturers' sentiment stood at 0 in December, down from plus 5 in September and worse than a median market forecast of plus 2, the tankan showed on Friday.

It marked the fourth straight quarter of decline and hit the lowest reading since March 2013, a month before BOJ Governor Haruhiko Kuroda deployed his "bazooka" monetary stimulus to pull Japan out of deflation.

Underscoring the pain from the trade war, an index gauging big automakers' sentiment turned negative for the first time in more than three years.

Some steel and cement makers also saw demand ahead of the 2020 Tokyo Olympic Games peak, a BOJ official told reporters.

"The weakness in automakers' sentiment is noteworthy. The global economy is taking longer to recover and that uncertainty is affecting Japanese companies," said Tsuyoshi Ueno, senior economist at NLI Research Institute.

A sales tax hike that rolled out in October weighed on Japan's service sector, with the index for big non-manufacturers sliding to plus 20 from plus 21 in September. But the reading exceeded a Refinitiv estimate of plus 17.

"Domestic demand wasn't hurt much by the sales tax hike so far. Public works projects to be earmarked under the government's spending package will underpin growth," said Mari Iwashita, chief market economist at Daiwa Securities.

Big firms plan to increase capital expenditure by 6.8% in the current business year ending in March 2020, up slightly from their plan made three months ago, the survey showed. It compared with a median market forecast of a 6.0% gain.

The reading backs the BOJ's view that robust corporate spending plans will keep domestic demand firm and help the economy weather heightening overseas risks, analysts say.

"Domestic demand may slow temporarily ... though in the long-term, it will stay resilient," BOJ Deputy Governor Masayoshi Amamiya said on Thursday, adding that now was the time to stand pat and carefully watch upcoming data.

Capital expenditure has been among the few bright spots in Japan's economy as companies continue to invest in high-tech and labour-saving technology to cope with a labour crunch.

Japan's economy expanded at a much faster pace than initially reported in the third quarter, as solid domestic demand and business spending offset the pain from weak exports and output.

But many analysts anticipate a slowdown this quarter as the October sales tax hike weighs on consumption.

The tankan's sentiment indexes are derived by subtracting the number of respondents who say conditions are poor from those who say they are good. A positive reading means optimists outnumber pessimists.

Japanese big manufacturers' business mood sank to a near seven-year low in the fourth quarter, a closely watched central bank survey showed, as the US-China trade war and soft global demand weighed on the export-reliant economy.

Japanese big manufacturers' business mood sank to a near seven-year low in the fourth quarter, a closely watched central bank survey showed, as the US-China trade war and soft global demand weighed on the export-reliant economy. Companies expect conditions to remain unchanged or even worsen three months ahead, the Bank of Japan's "tankan" quarterly survey showed, suggesting that the fallout from the trade conflict could hurt broader sectors of the economy. But there were some bright signs. Non-manufacturers' sentiment appeared to weather the hit from October's sales tax hike with companies maintaining robust capital expenditure plans, reinforcing market expectations the BOJ will hold off on expanding stimulus at next week's rate review. "The tankan suggests that the economy is slowing rather than collapsing so the BOJ is unlikely to cut interest rates at next week's meeting," said Marcel Thieliant, senior Japan economist at Capital Economics. The headline index for big manufacturers' sentiment stood at 0 in December, down from plus 5 in September and worse than a median market forecast of plus 2, the tankan showed on Friday. It marked the fourth straight quarter of decline and hit the lowest reading since March 2013, a month before BOJ Governor Haruhiko Kuroda deployed his "bazooka" monetary stimulus to pull Japan out of deflation. Underscoring the pain from the trade war, an index gauging big automakers' sentiment turned negative for the first time in more than three years. Some steel and cement makers also saw demand ahead of the 2020 Tokyo Olympic Games peak, a BOJ official told reporters. "The weakness in automakers' sentiment is noteworthy. The global economy is taking longer to recover and that uncertainty is affecting Japanese companies," said Tsuyoshi Ueno, senior economist at NLI Research Institute. A sales tax hike that rolled out in October weighed on Japan's service sector, with the index for big non-manufacturers sliding to plus 20 from plus 21 in September. But the reading exceeded a Refinitiv estimate of plus 17. "Domestic demand wasn't hurt much by the sales tax hike so far. Public works projects to be earmarked under the government's spending package will underpin growth," said Mari Iwashita, chief market economist at Daiwa Securities. Big firms plan to increase capital expenditure by 6.8% in the current business year ending in March 2020, up slightly from their plan made three months ago, the survey showed. It compared with a median market forecast of a 6.0% gain. The reading backs the BOJ's view that robust corporate spending plans will keep domestic demand firm and help the economy weather heightening overseas risks, analysts say. "Domestic demand may slow temporarily ... though in the long-term, it will stay resilient," BOJ Deputy Governor Masayoshi Amamiya said on Thursday, adding that now was the time to stand pat and carefully watch upcoming data. Capital expenditure has been among the few bright spots in Japan's economy as companies continue to invest in high-tech and labour-saving technology to cope with a labour crunch. Japan's economy expanded at a much faster pace than initially reported in the third quarter, as solid domestic demand and business spending offset the pain from weak exports and output. But many analysts anticipate a slowdown this quarter as the October sales tax hike weighs on consumption. The tankan's sentiment indexes are derived by subtracting the number of respondents who say conditions are poor from those who say they are good. A positive reading means optimists outnumber pessimists.

Japan business mood gloomiest in nearly seven years as trade war bites

China and the United States are in close communication on trade, its commerce ministry said on Thursday, declining to comment on possible retaliatory steps if Washington imposes more tariffs on Chinese goods this weekend.

The United States is due to impose tariffs on almost $160 billion of Chinese imports such as <a href="https://www.wionews.com/world/nintendo-to-officially-launch-its-switch-gaming-console-in-china-266103">video game consoles</a>, computer monitors and toys on Sunday.

US&nbsp;President<a href="https://www.wionews.com/world/amid-criticism-trump-signs-order-targeting-anti-semitism-at-universities-267765"> Donald Trump</a> is expected to meet top trade advisers on Thursday to discuss the move, sources told Reuters previously.

A decision to proceed with the levies could roil financial markets and scuttle <a href="https://www.wionews.com/opinions/us-china-trade-talks-free-trade-must-not-be-derailed-198923">US-China talks</a> to end the 17-month-long trade war between the world's two largest economies.

"The two sides' economic and trade teams are maintaining close communication," Gao Feng, a spokesman at the Chinese commerce ministry, told reporters at a regular briefing.

The countries agreed in October to conclude a preliminary trade agreement, but talks have failed to produce deals on agricultural purchases by China and rollbacks of existing tariffs imposed by the United States. Many analysts had expected a deal ahead of December&nbsp;15.

Beijing has said it would retaliate if the United States escalates the trade dispute.

In August, China said it would impose 5 per cent&nbsp;and 10&nbsp;per cent&nbsp;in additional tariffs on $75 billion of US&nbsp;goods in two batches. Tariffs on the first batch kicked in on September&nbsp;1, hitting US&nbsp;goods including soybeans, pork, beef, chemicals, and crude oil.

The tariffs on the second batch of products are due to be activated on December&nbsp;15, affecting goods ranging from corn and wheat to small aircraft and rare earth magnets.

China also said at the time that it will reinstitute on December&nbsp;15 an additional 25&nbsp;per cent&nbsp;tariff on US-made vehicles and 5&nbsp;per cent&nbsp;tariffs on auto parts that had been suspended at the beginning of 2019.

China and the United States are in close communication on trade, its commerce ministry said on Thursday, declining to comment on possible retaliatory steps if Washington imposes more tariffs on Chinese goods this weekend.

China and the United States are in close communication on trade, its commerce ministry said on Thursday, declining to comment on possible retaliatory steps if Washington imposes more tariffs on Chinese goods this weekend. The United States is due to impose tariffs on almost $160 billion of Chinese imports such as video game consoles, computer monitors and toys on Sunday. US President Donald Trump is expected to meet top trade advisers on Thursday to discuss the move, sources told Reuters previously. A decision to proceed with the levies could roil financial markets and scuttle US-China talks to end the 17-month-long trade war between the world's two largest economies. "The two sides' economic and trade teams are maintaining close communication," Gao Feng, a spokesman at the Chinese commerce ministry, told reporters at a regular briefing. The countries agreed in October to conclude a preliminary trade agreement, but talks have failed to produce deals on agricultural purchases by China and rollbacks of existing tariffs imposed by the United States. Many analysts had expected a deal ahead of December 15. Beijing has said it would retaliate if the United States escalates the trade dispute. In August, China said it would impose 5 per cent and 10 per cent in additional tariffs on $75 billion of US goods in two batches. Tariffs on the first batch kicked in on September 1, hitting US goods including soybeans, pork, beef, chemicals, and crude oil. The tariffs on the second batch of products are due to be activated on December 15, affecting goods ranging from corn and wheat to small aircraft and rare earth magnets. China also said at the time that it will reinstitute on December 15 an additional 25 per cent tariff on US-made vehicles and 5 per cent tariffs on auto parts that had been suspended at the beginning of 2019.

China says in close communication with US on trade as fresh tariffs loom

China's top diplomat Yang Jiechi told US&nbsp;Secretary of State Mike Pompeo in a phone call on Saturday that the United States should stop interfering in China's internal affairs, according to a report by state TV.

Citing the passing of the Uighur Human Rights Policy Act of 2019 and the Hong Kong Human Rights and Democracy Act of 2019, Yang said the <a href="https://www.wionews.com/world/chinese-media-blasts-us-for-uighur-bill-calls-for-action-266285">United States </a>had seriously violated international relations, and urged Washington to "correct its mistakes" and "immediately stop interfering in China's internal affairs".

The US&nbsp;House of Representatives passed legislation on Tuesday requiring a stronger response to Beijing's treatment of its Uighur Muslim minority.

UN&nbsp;experts and activists say China has detained possibly one million Uighurs in mass detention camps in Xinjiang, a region in China's far west.

China says the camps are part of an anti-terror crackdown and are providing vocational training. It denies any mistreatment of Uighurs.

The Uighur Act followed US&nbsp;legislation recently signed into law by President Donald Trump aimed at protecting human rights in <a href="https://www.wionews.com/world/china-slaps-sanctions-on-united-states-for-passing-hong-kong-rights-bill-265730">Hong Kong </a>amid a crackdown on pro-democracy protests.

What started as demonstrations against a now-withdrawn bill allowing extradition from Hong Kong to mainland China has morphed into calls for greater democratic freedoms and nearly six months of sometimes violent protests in Hong Kong. Beijing has condemned the unrest and blamed foreign interference.

Yang said US&nbsp;officials have repeatedly made statements that distorted and attacked China's political system and domestic and foreign policies, and interfered in China's internal affairs.

"China expresses its firm opposition and strongly condemns this," said Yang, according to the report.

 
&nbsp;

China's top diplomat Yang Jiechi told US Secretary of State Mike Pompeo in a phone call on Saturday that the United States should stop interfering in China's internal affairs, according to a report by state TV.

China's top diplomat Yang Jiechi told US Secretary of State Mike Pompeo in a phone call on Saturday that the United States should stop interfering in China's internal affairs, according to a report by state TV. Citing the passing of the Uighur Human Rights Policy Act of 2019 and the Hong Kong Human Rights and Democracy Act of 2019, Yang said the United States had seriously violated international relations, and urged Washington to "correct its mistakes" and "immediately stop interfering in China's internal affairs". The US House of Representatives passed legislation on Tuesday requiring a stronger response to Beijing's treatment of its Uighur Muslim minority. UN experts and activists say China has detained possibly one million Uighurs in mass detention camps in Xinjiang, a region in China's far west. China says the camps are part of an anti-terror crackdown and are providing vocational training. It denies any mistreatment of Uighurs. The Uighur Act followed US legislation recently signed into law by President Donald Trump aimed at protecting human rights in Hong Kong amid a crackdown on pro-democracy protests. What started as demonstrations against a now-withdrawn bill allowing extradition from Hong Kong to mainland China has morphed into calls for greater democratic freedoms and nearly six months of sometimes violent protests in Hong Kong. Beijing has condemned the unrest and blamed foreign interference. Yang said US officials have repeatedly made statements that distorted and attacked China's political system and domestic and foreign policies, and interfered in China's internal affairs. "China expresses its firm opposition and strongly condemns this," said Yang, according to the report.

US must stop interfering in our internal affairs: China's top diplomat tells Pompeo

The United States and&nbsp;China&nbsp;are moving&nbsp;closer&nbsp;to agreeing on the amount of tariffs to be rolled back in a&nbsp;phase-one&nbsp;trade&nbsp;deal,&nbsp;Bloomberg&nbsp;reported on Wednesday, citing sources.

US&nbsp;President Donald Trump on Tuesday had said a&nbsp;trade&nbsp;agreement with&nbsp;China&nbsp;might have to wait until after the US&nbsp;presidential election in November 2020, denting hopes of a resolution soon to a dispute that has weighed on the world economy.

The United States and China are moving closer to agreeing on the amount of tariffs to be rolled back in a phase-one trade deal, Bloomberg reported on Wednesday, citing sources.

The United States and China are moving closer to agreeing on the amount of tariffs to be rolled back in a phase-one trade deal, Bloomberg reported on Wednesday, citing sources. US President Donald Trump on Tuesday had said a trade agreement with China might have to wait until after the US presidential election in November 2020, denting hopes of a resolution soon to a dispute that has weighed on the world economy.

US and China move closer to phase-one trade deal: Sources

Global equities mostly retreated Tuesday after US President Donald Trump warned there was no deadline for doing a trade deal with China.

The announcement added to trade uncertainty already stoked by the United States reimposing tariffs on Argentina and Brazil, threatening France with steep levies -- and warning China of possible new measures if ongoing talks fall through.

Trump, in Britain for a NATO summit, warned that efforts to resolve a trade dispute could wait until after next November's US election.

"I have no deadline," Trump told reporters upon his arrival.

"In some ways I like the idea of waiting until after the election for the China deal."

Trump's trade war with China and on-again-off-again attempts to reach a deal have destabilised markets and stoked geopolitical tensions.

'Another turn lower'&nbsp;

"The chances of a deal by December 15 just took another turn lower," said Markets.com analyst Neil Wilson.

"After weeks of making generally positive noises on a deal being very close, there is a real sense now that a deal is not so very near at all and markets need to reprice," Wilson added.

As recently as last week Trump boasted that he was in the "final throes" of negotiating "one of the most important deals in trade ever".

But Washington has since courted Chinese anger by expressing support for Hong Kong protesters.

Optimism that Beijing and Washington will eventually hammer out a partial agreement as part of a wider deal had supported equities for weeks, helping Wall Street to set numerous records.

Wine and cheese&nbsp;

But investor sentiment was dealt a blow on Monday when Trump said he would reinstate tariffs on steel and aluminium from Argentina and Brazil whom he accused of manipulating their currencies and hurting US farmers.

Later, officials warned they would also hit France with up to 100 per cent levies on $2.4 billion in goods, saying a French digital tax was discriminatory against US tech firms such as Google, Apple and Amazon.

Sparkling wine, yoghurt and Roquefort cheese could be affected as soon as next month, while US Trade Representative Robert Lighthizer warned his office was also considering similar moves against Austria, Italy, and Turkey.

On Tuesday, France vowed a "strong" response to any tariffs.

Oil prices were firmer ahead of a key meeting of OPEC and other major producers, which is expected to see them maintain output cuts into June, with speculation they could go on until the end of 2020.

Key figures around 1645 GMT&nbsp;

London - FTSE 100: DOWN 1.8 percent at 7,158.76 points (close)

Frankfurt - DAX 30: UP 0.2 percent at 12,989.29 (close)

Paris - CAC 40: DOWN 1.0 percent at 5,727.22 (close)

EURO STOXX 50: DOWN 0.4 percent at 3,610.99

New York - Dow: DOWN 1.4 percent at 27,392.08

Tokyo - Nikkei 225: DOWN 0.6 percent at 23,379.81 (close)

Hong Kong - Hang Seng: DOWN 0.2 percent at 26,391.30 (close)

Shanghai - Composite: UP 0.3 percent at 2,884.70 (close)

Euro/dollar: UP at $1.1085 from $1.1078 at 2145 GMT

Pound/dollar: UP at $1.3000 from $1.2939

Euro/pound: DOWN at 85.25 pence from 85.63

Dollar/yen: DOWN at 108.56 from 108.98 yen

Brent North Sea crude: UP 0.2 percent at $61.03 per barrel

West Texas Intermediate: UP 0.2 percent at $56.08&nbsp;

Global equities mostly retreated Tuesday after US President Donald Trump warned there was no deadline for doing a trade deal with China. The announcement added to trade uncertainty already stoked by the United States reimposing tariffs on Argentina and Brazil, threatening France with steep levies -- and warning China of possible new measures if ongoing talks fall through.

Global equities mostly retreated Tuesday after US President Donald Trump warned there was no deadline for doing a trade deal with China. The announcement added to trade uncertainty already stoked by the United States reimposing tariffs on Argentina and Brazil, threatening France with steep levies -- and warning China of possible new measures if ongoing talks fall through. Trump, in Britain for a NATO summit, warned that efforts to resolve a trade dispute could wait until after next November's US election. "I have no deadline," Trump told reporters upon his arrival. "In some ways I like the idea of waiting until after the election for the China deal." Trump's trade war with China and on-again-off-again attempts to reach a deal have destabilised markets and stoked geopolitical tensions. 'Another turn lower' "The chances of a deal by December 15 just took another turn lower," said Markets.com analyst Neil Wilson. "After weeks of making generally positive noises on a deal being very close, there is a real sense now that a deal is not so very near at all and markets need to reprice," Wilson added. As recently as last week Trump boasted that he was in the "final throes" of negotiating "one of the most important deals in trade ever". But Washington has since courted Chinese anger by expressing support for Hong Kong protesters. Optimism that Beijing and Washington will eventually hammer out a partial agreement as part of a wider deal had supported equities for weeks, helping Wall Street to set numerous records. Wine and cheese But investor sentiment was dealt a blow on Monday when Trump said he would reinstate tariffs on steel and aluminium from Argentina and Brazil whom he accused of manipulating their currencies and hurting US farmers. Later, officials warned they would also hit France with up to 100 per cent levies on $2.4 billion in goods, saying a French digital tax was discriminatory against US tech firms such as Google, Apple and Amazon. Sparkling wine, yoghurt and Roquefort cheese could be affected as soon as next month, while US Trade Representative Robert Lighthizer warned his office was also considering similar moves against Austria, Italy, and Turkey. On Tuesday, France vowed a "strong" response to any tariffs. Oil prices were firmer ahead of a key meeting of OPEC and other major producers, which is expected to see them maintain output cuts into June, with speculation they could go on until the end of 2020. Key figures around 1645 GMT London - FTSE 100: DOWN 1.8 percent at 7,158.76 points (close) Frankfurt - DAX 30: UP 0.2 percent at 12,989.29 (close) Paris - CAC 40: DOWN 1.0 percent at 5,727.22 (close) EURO STOXX 50: DOWN 0.4 percent at 3,610.99 New York - Dow: DOWN 1.4 percent at 27,392.08 Tokyo - Nikkei 225: DOWN 0.6 percent at 23,379.81 (close) Hong Kong - Hang Seng: DOWN 0.2 percent at 26,391.30 (close) Shanghai - Composite: UP 0.3 percent at 2,884.70 (close) Euro/dollar: UP at $1.1085 from $1.1078 at 2145 GMT Pound/dollar: UP at $1.3000 from $1.2939 Euro/pound: DOWN at 85.25 pence from 85.63 Dollar/yen: DOWN at 108.56 from 108.98 yen Brent North Sea crude: UP 0.2 percent at $61.03 per barrel West Texas Intermediate: UP 0.2 percent at $56.08

Global stocks rattled after Donald Trump says no 'deadline' on US-China trade deal

<a href="https://www.wionews.com/business-economy/oil-drops-as-us-inventory-build-record-output-rekindles-supply-worries-264998">Oil prices </a>tumbled Friday on expectations OPEC next week won't take aggressive action to boost oil prices, while global equities pulled back on trade war worries.&nbsp;

Both the US and European benchmark contracts for oil fell ahead of the December 5 meeting of the Organization of the Petroleum Exporting Countries in Vienna where analysts expect the cartel to stick with a current production agreement, but not to deepen cuts.

"The market may be disappointed that OPEC is not entertaining additional production cuts," said Andy Lipow of Lipow Oil Associates, adding that the group is "in a difficult position" given weak demand and higher output in the US and other regions.

Equity markets ended lower following a lackluster session. US bourses pulled back from records in a holiday-shortened session with low trading volumes.

Analysts said stocks were dragged lower by increased US-China trade friction as Beijing threatened unspecified retaliation after President Donald Trump signed into law legislation supporting Hong Kong pro-democracy protesters.

The market feels "a little angst" on US-China trade relations, although the modest drop suggests few fears that a preliminary US-China trade deal will fall apart, said Briefing.com analyst Patrick O'Hare, who added that low trading volume sharpened the decline.

The pullback also came as the holiday shopping season got started in earnest with the "Black Friday" promotions after Thanksgiving.&nbsp;

Walmart rose slightly, but most other leading US retailers fell, including Target and Amazon, as consumers shift ever more of their dollars to e-commerce from traditional stores.&nbsp;

Elsewhere, London underperformed its eurozone peers in response to a stronger pound which was boosted by expectations that Britain's ruling Conservatives will win next month's general election.

This would likely allow Prime Minister Boris Johnson to push through his Brexit agreement and avoid a no-deal divorce from the European Union.

On the corporate front, shares in Daimler dropped 1.5 per cent. on the Frankfurt bourse as the German luxury automaker said it would slash at least 10,000 jobs worldwide in a major cost-cutting drive to help finance the switch to electric cars.

Shares in UK online supermarket Ocado surged after the company announced a deal to provide artificial intelligence (AI) capabilities to Japanese retail giant Aeon.

Key figures around 1900 GMT&nbsp;

New York - Dow: DOWN 0.4 percent at 28,051.41 (close)

New York - S&amp;P 500: DOWN 0.4 percent at 3,140.98 (close)

New York - Nasdaq: DOWN 0.5 percent at 8,665.47 (close)

London - FTSE 100: DOWN 0.9 percent at 7,346.53 (close)

Frankfurt - DAX 30: DOWN 0.1 percent at 13,236.38 (close)

Paris - CAC 40: DOWN 0.1 percent at 5,905.17 (close)

EURO STOXX 50: FLAT at 3,703.58 (close)

Tokyo - Nikkei 225: DOWN 0.5 percent at 23,293.91 (close)

Hong Kong - Hang Seng: DOWN 2.0 percent at 26,346.49 (close)

Shanghai - Composite: DOWN 0.6 percent at 2,871.98 (close)

Euro/dollar: UP at $1.1017 from $1.1009&nbsp;

Pound/dollar: UP at $1.2933 from $1.2912

Euro/pound: DOWN at 85.18 pence from 85.27

Dollar/yen: DOWN at 109.47 yen from 109.51

Brent North Sea crude: DOWN 2.3 percent at $62.43 per barrel

West Texas Intermediate: DOWN 5.1 percent at $55.17 per barrel

Oil prices tumbled Friday on expectations OPEC next week won't take aggressive action to boost oil prices, while global equities pulled back on trade war worries.

Oil prices tumbled Friday on expectations OPEC next week won't take aggressive action to boost oil prices, while global equities pulled back on trade war worries. Both the US and European benchmark contracts for oil fell ahead of the December 5 meeting of the Organization of the Petroleum Exporting Countries in Vienna where analysts expect the cartel to stick with a current production agreement, but not to deepen cuts. "The market may be disappointed that OPEC is not entertaining additional production cuts," said Andy Lipow of Lipow Oil Associates, adding that the group is "in a difficult position" given weak demand and higher output in the US and other regions. Equity markets ended lower following a lackluster session. US bourses pulled back from records in a holiday-shortened session with low trading volumes. Analysts said stocks were dragged lower by increased US-China trade friction as Beijing threatened unspecified retaliation after President Donald Trump signed into law legislation supporting Hong Kong pro-democracy protesters. The market feels "a little angst" on US-China trade relations, although the modest drop suggests few fears that a preliminary US-China trade deal will fall apart, said Briefing.com analyst Patrick O'Hare, who added that low trading volume sharpened the decline. The pullback also came as the holiday shopping season got started in earnest with the "Black Friday" promotions after Thanksgiving. Walmart rose slightly, but most other leading US retailers fell, including Target and Amazon, as consumers shift ever more of their dollars to e-commerce from traditional stores. Elsewhere, London underperformed its eurozone peers in response to a stronger pound which was boosted by expectations that Britain's ruling Conservatives will win next month's general election. This would likely allow Prime Minister Boris Johnson to push through his Brexit agreement and avoid a no-deal divorce from the European Union. On the corporate front, shares in Daimler dropped 1.5 per cent. on the Frankfurt bourse as the German luxury automaker said it would slash at least 10,000 jobs worldwide in a major cost-cutting drive to help finance the switch to electric cars. Shares in UK online supermarket Ocado surged after the company announced a deal to provide artificial intelligence (AI) capabilities to Japanese retail giant Aeon. Key figures around 1900 GMT New York - Dow: DOWN 0.4 percent at 28,051.41 (close) New York - S&P 500: DOWN 0.4 percent at 3,140.98 (close) New York - Nasdaq: DOWN 0.5 percent at 8,665.47 (close) London - FTSE 100: DOWN 0.9 percent at 7,346.53 (close) Frankfurt - DAX 30: DOWN 0.1 percent at 13,236.38 (close) Paris - CAC 40: DOWN 0.1 percent at 5,905.17 (close) EURO STOXX 50: FLAT at 3,703.58 (close) Tokyo - Nikkei 225: DOWN 0.5 percent at 23,293.91 (close) Hong Kong - Hang Seng: DOWN 2.0 percent at 26,346.49 (close) Shanghai - Composite: DOWN 0.6 percent at 2,871.98 (close) Euro/dollar: UP at $1.1017 from $1.1009 Pound/dollar: UP at $1.2933 from $1.2912 Euro/pound: DOWN at 85.18 pence from 85.27 Dollar/yen: DOWN at 109.47 yen from 109.51 Brent North Sea crude: DOWN 2.3 percent at $62.43 per barrel West Texas Intermediate: DOWN 5.1 percent at $55.17 per barrel

Oil prices tumble ahead of OPEC meeting, global stocks fall

Indian markets ended with massive gains on Friday due to positive cues from US-China trade agreement. &nbsp;

<a href="https://www.wionews.com/business-economy/sensex-nifty-track-broader-asia-higher-metal-stocks-gain-264364">BSE Sensex</a> ended with a lifetime high of 40,889.23&nbsp;points after grabbing 529.82 points or 1.31 per cent over the previous close. NSE Nifty gained 164.10 points or 1.38 per cent to settle at 12,078.50 points.&nbsp;

Earlier, the 30-share-index touched a record high of 40,931.71 points intraday.&nbsp;

On Saturday, US national security adviser Robert O'Brien said an initial trade deal with China was still possible by the end of 2019.&nbsp;

Bharti Airtel was the biggest gainer in the Sensex pack with a rise of 7.20 per cent in its share value after telecom companies moved to Supreme Court regarding payment of Rs 92,000 crore dues to Department of Telecom.&nbsp;

Tata Steel, IndusInd Bank, Axis Bank, HDFC, Maruti and Tata Motors were the major gainers in the Sensex pack. In the Nifty pack, Bharti Airtel,&nbsp;Bharti Infratel, Tata Steel and Hindalco were the top earners. Only two stocks in the 30-share index ended on red.&nbsp;

The Nifty Metal index rose 3.48 per cent at the day's highest level, which is its biggest percentage jump in more than five weeks.

On Friday, BSE Sensex closed 40,359.4o, while Nifty ended at 11,914.40.

Indian markets ended with massive gains on Friday due to positive cues from US-China trade agreement. BSE Sensex ended with a lifetime high of 40,889.23 points after grabbing 529.

Indian markets ended with massive gains on Friday due to positive cues from US-China trade agreement. BSE Sensex ended with a lifetime high of 40,889.23 points after grabbing 529.82 points or 1.31 per cent over the previous close. NSE Nifty gained 164.10 points or 1.38 per cent to settle at 12,078.50 points. Earlier, the 30-share-index touched a record high of 40,931.71 points intraday. On Saturday, US national security adviser Robert O'Brien said an initial trade deal with China was still possible by the end of 2019. Bharti Airtel was the biggest gainer in the Sensex pack with a rise of 7.20 per cent in its share value after telecom companies moved to Supreme Court regarding payment of Rs 92,000 crore dues to Department of Telecom. Tata Steel, IndusInd Bank, Axis Bank, HDFC, Maruti and Tata Motors were the major gainers in the Sensex pack. In the Nifty pack, Bharti Airtel, Bharti Infratel, Tata Steel and Hindalco were the top earners. Only two stocks in the 30-share index ended on red. The Nifty Metal index rose 3.48 per cent at the day's highest level, which is its biggest percentage jump in more than five weeks. On Friday, BSE Sensex closed 40,359.4o, while Nifty ended at 11,914.40.

Indian markets end big as BSE Sensex hits lifetime high

Wall Street advanced on Friday as both Washington and Beijing made positive comments on the potential for a trade deal between the world's two biggest economies and upbeat domestic economic data helped to ease investor worries.

US&nbsp;President <a href="https://www.wionews.com/world/frustrated-trump-lashes-out-at-impeachment-probe-263974">Donald Trump</a> told Fox News a trade deal was "potentially very close" following <a href="https://www.wionews.com/world/want-to-work-out-preliminary-trade-deal-with-united-states-not-afraid-of-retaliating-chinese-president-jinping-263827">remarks by President Xi Jinping</a> that Beijing wanted to work out an initial agreement.

The S&amp;P 500 and the Dow showed their biggest daily gains in a lacklustre week marked by uncertainty, with a report suggesting the delay of a trade truce to 2020 and US&nbsp;lawmakers passing two bills <a href="https://www.wionews.com/world/hong-kong-would-be-obliterated-in-14-minutes-if-not-for-me-donald-trump-263961">supporting protesters in Hong Kong</a>, which could complicate US-China talks.

Strategists said it helped that Trump was vague on Friday about whether he would sign or veto the bills.

Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia, attributed Friday's gains to strong US&nbsp;manufacturing data as well as the improving mood on trade. He said investors were cautious about the apparent trade progress, however.

“President Trump saying it's close is news we’ve heard before. How close is close? Close but not quite or close but I could change my mind?" he said. "That’s what’s keeping the market on its heels at the moment, keeping the move a little bit more timid.”

Manufacturing output accelerated in November to its fastest pace in seven months and services activity picked up more than expected.

The Dow Jones Industrial Average&nbsp;rose 109.33 points, or 0.39 per cent, to 27,875.62, the S&amp;P 500&nbsp;gained 6.75 points, or 0.22 per cent, to 3,110.29 and the Nasdaq Composite&nbsp;added 13.67 points, or 0.16 per cent, to 8,519.89.

Still, the S&amp;P snapped its six-week winning streak, while the tech-heavy Nasdaq registered its first weekly drop in eight weeks and the Dow showed a weekly loss after four weeks of gains. A largely better-than-expected third-quarter corporate earnings season contributed to recent rallies.

Seven of the 11 major S&amp;P 500 sectors closed higher, led by a 0.76 per cent&nbsp;gain in financials&nbsp;and a 0.65 per cent&nbsp;rise in consumer discretionary.

Nordstrom Inc&nbsp;rose 10.6 per cent&nbsp;after the retailer raised its 2019 forecast and reported third-quarter profit above expectations. Gap Inc&nbsp;shares rose 4.4 per cent&nbsp;as the retailer beat lowered quarterly profit estimates days after it cut its annual forecast and replaced its longtime chief executive officer.

Shares of Tesla Inc&nbsp;fell 6 per cent&nbsp;as Wall Street questioned the look of its newly unveiled electric pickup truck, whose "armored glass" windows<a href="https://www.wionews.com/business-economy/tesla-suffer-mishap-during-launch-of-electric-cybertruck-263848"> shattered in a demonstration</a>.

Intuit Inc&nbsp;dropped 4.2 per cent&nbsp;after the income-tax filing software maker forecast second-quarter profit below estimates.

Advancing issues outnumbered declining ones on the NYSE by a 1.50-to-1 ratio; on Nasdaq, a 1.40-to-1 ratio favoured advancers.

The S&amp;P 500 posted 17 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 60 new highs and 84 new lows.

On US&nbsp;exchanges, 5.96 billion shares changed hands compared with the 7.03 billion average for the last 20 sessions.

Wall Street advanced on Friday as both Washington and Beijing made positive comments on the potential for a trade deal between the world's two biggest economies and upbeat domestic economic data helped to ease investor worries.

Wall Street advanced on Friday as both Washington and Beijing made positive comments on the potential for a trade deal between the world's two biggest economies and upbeat domestic economic data helped to ease investor worries. US President Donald Trump told Fox News a trade deal was "potentially very close" following remarks by President Xi Jinping that Beijing wanted to work out an initial agreement. The S&P 500 and the Dow showed their biggest daily gains in a lacklustre week marked by uncertainty, with a report suggesting the delay of a trade truce to 2020 and US lawmakers passing two bills supporting protesters in Hong Kong, which could complicate US-China talks. Strategists said it helped that Trump was vague on Friday about whether he would sign or veto the bills. Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia, attributed Friday's gains to strong US manufacturing data as well as the improving mood on trade. He said investors were cautious about the apparent trade progress, however. “President Trump saying it's close is news we’ve heard before. How close is close? Close but not quite or close but I could change my mind?" he said. "That’s what’s keeping the market on its heels at the moment, keeping the move a little bit more timid.” Manufacturing output accelerated in November to its fastest pace in seven months and services activity picked up more than expected. The Dow Jones Industrial Average rose 109.33 points, or 0.39 per cent, to 27,875.62, the S&P 500 gained 6.75 points, or 0.22 per cent, to 3,110.29 and the Nasdaq Composite added 13.67 points, or 0.16 per cent, to 8,519.89. Still, the S&P snapped its six-week winning streak, while the tech-heavy Nasdaq registered its first weekly drop in eight weeks and the Dow showed a weekly loss after four weeks of gains. A largely better-than-expected third-quarter corporate earnings season contributed to recent rallies. Seven of the 11 major S&P 500 sectors closed higher, led by a 0.76 per cent gain in financials and a 0.65 per cent rise in consumer discretionary. Nordstrom Inc rose 10.6 per cent after the retailer raised its 2019 forecast and reported third-quarter profit above expectations. Gap Inc shares rose 4.4 per cent as the retailer beat lowered quarterly profit estimates days after it cut its annual forecast and replaced its longtime chief executive officer. Shares of Tesla Inc fell 6 per cent as Wall Street questioned the look of its newly unveiled electric pickup truck, whose "armored glass" windows shattered in a demonstration. Intuit Inc dropped 4.2 per cent after the income-tax filing software maker forecast second-quarter profit below estimates. Advancing issues outnumbered declining ones on the NYSE by a 1.50-to-1 ratio; on Nasdaq, a 1.40-to-1 ratio favoured advancers. The S&P 500 posted 17 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 60 new highs and 84 new lows. On US exchanges, 5.96 billion shares changed hands compared with the 7.03 billion average for the last 20 sessions.

Wall Street rises with US-China trade mood, upbeat economic data

Oil prices pulled back from their highest levels in nearly two months on Friday amid lingering doubts on whether the United States and China will be able to reach a partial <a href="https://www.wionews.com/world/want-to-work-out-preliminary-trade-deal-with-united-states-not-afraid-of-retaliating-chinese-president-jinping-263827">trade deal </a>that would lift some pressure on the global economy.

That was more than enough to offset news of a likely extension of production cuts by major producers that drove prices higher in the previous session.

Brent crude futures dropped 34 cents, or 0.53%, to $63.63 a barrel by 0745 GMT, while West Texas Intermediate (WTI) crude futures fell 31 cents, also down 0.53%, to $58.27 per barrel.

China has invited top US&nbsp;trade negotiators for a new round of face-to-face talks in Beijing amid continued efforts to strike at least a limited deal, the Wall Street Journal reported on Thursday citing unidentified sources.

"The key factor for the demand outlook for oil is the (US-China) trade negotiation currently going on," said Michael McCarthy, chief market strategist at CMC Markets and Stockbroking in Sydney.

"With oil near the top of recent trading ranges it's no surprise to see a bit of selling pressure during the session today."

Prices had touched their highest since late September on Thursday after Reuters reported that the Organization of the Petroleum Exporting Countries (OPEC) and Russia are likely to extend existing production cuts by another three months to mid-2020 when they meet on Dec. 5.

Oil was also buoyed by comments from China's commerce ministry on Thursday that it will strive to reach an initial agreement with the United States to end the pair's long-running trade war, allaying fears that talks might be unravelling. However, the completion of a phase one deal could slide into next year.

News that last week saw the biggest drawdown in three months for US&nbsp;crude stock stockpiles at Cushing, Oklahoma also underpinned prices earlier this week. Cushing is the delivery point for WTI futures.

Elsewhere, traders are also keeping a keen eye on the impact on oil production at OPEC countries Iran and Iraq amid ongoing protests.

Several major economies - the United States, France and Germany - will release manufacturing data later today which could impact the market, McCarthy said.

Oil prices pulled back from their highest levels in nearly two months on Friday amid lingering doubts on whether the United States and China will be able to reach a partial trade deal that would lift some pressure on the global economy.

Oil prices pulled back from their highest levels in nearly two months on Friday amid lingering doubts on whether the United States and China will be able to reach a partial trade deal that would lift some pressure on the global economy. That was more than enough to offset news of a likely extension of production cuts by major producers that drove prices higher in the previous session. Brent crude futures dropped 34 cents, or 0.53%, to $63.63 a barrel by 0745 GMT, while West Texas Intermediate (WTI) crude futures fell 31 cents, also down 0.53%, to $58.27 per barrel. China has invited top US trade negotiators for a new round of face-to-face talks in Beijing amid continued efforts to strike at least a limited deal, the Wall Street Journal reported on Thursday citing unidentified sources. "The key factor for the demand outlook for oil is the (US-China) trade negotiation currently going on," said Michael McCarthy, chief market strategist at CMC Markets and Stockbroking in Sydney. "With oil near the top of recent trading ranges it's no surprise to see a bit of selling pressure during the session today." Prices had touched their highest since late September on Thursday after Reuters reported that the Organization of the Petroleum Exporting Countries (OPEC) and Russia are likely to extend existing production cuts by another three months to mid-2020 when they meet on Dec. 5. Oil was also buoyed by comments from China's commerce ministry on Thursday that it will strive to reach an initial agreement with the United States to end the pair's long-running trade war, allaying fears that talks might be unravelling. However, the completion of a phase one deal could slide into next year. News that last week saw the biggest drawdown in three months for US crude stock stockpiles at Cushing, Oklahoma also underpinned prices earlier this week. Cushing is the delivery point for WTI futures. Elsewhere, traders are also keeping a keen eye on the impact on oil production at OPEC countries Iran and Iraq amid ongoing protests. Several major economies - the United States, France and Germany - will release manufacturing data later today which could impact the market, McCarthy said.

Oil topples from two-month high on concern over US-China trade deal

China will strive to reach an initial <a href="https://www.wionews.com/world/united-states-china-trade-deal-may-not-be-signed-this-year-263497">trade agreement </a>with the United States as both sides keep communication channels open, the Chinese commerce ministry said on Thursday, in an attempt to allay fears talks might be unraveling.

China is willing to work with the United States to resolve each other's core concerns on the basis of equality and mutual respect, and will try hard to reach a "phase one" deal, Gao Feng, spokesman at the ministry, told reporters.

"This is in line with the interests of both China and the <a href="https://www.wionews.com/business-economy/donald-trump-says-us-is-still-talking-to-china-on-trade-263477">United States</a>, and of the world," Gao said.

Economists warn that the prolonged trade dispute between China and the United States is escalating risks to the global economy by disrupting supply chains, discouraging investment and dampening business confidence.

Completion of a phase one deal could slide into next year, trade experts and people close to the White House told Reuters previously, as Beijing presses for more extensive tariff rollbacks and the US&nbsp;administration counters with heightened demands of its own.

Officials from Beijing had suggested that Chinese President Xi Jinping and US&nbsp;counterpart Donald Trump might sign a deal in early December.

Some experts said the next date to watch was Dec&nbsp;15, when US&nbsp;tariffs on about $156 billion in Chinese goods are set to take effect, including holiday gift items such as electronics and Christmas decorations.

In a dinner speech in Beijing on Wednesday, Chinese Vice Premier Liu He said he was "cautiously optimistic" on a phase one deal, Bloomberg News said, citing people who attended the event ahead of a forum organised by Bloomberg LP.

Liu, China's chief negotiator at the trade talks, separately told one of the attendees that he was "confused" about the US&nbsp;demands, but was confident the first phase of a deal could be completed nevertheless, Bloomberg added.

Gao, when asked about sticking points and whether they were related to Washington's demand for China to buy more US&nbsp;farm goods and the tariff rollbacks, said he did not have more information to disclose beyond the fact that both parties would continue to communicate, and "outside rumours are not accurate."

A former Chinese commerce minister told Reuters that both sides should return to the time when the trade war first started.

"We should return to the point of origin and cancel all tariffs," Wei Jianguo said on the sidelines of the Bloomberg forum.

Wei said he was hopeful for a phase one pact, in light of the pressure on both the US&nbsp;and Chinese economies as the trade war dragged on.

"Now, Trump himself is cognizant about the needs of the (upcoming US) elections, and the US&nbsp;economy has also suffered great losses," he said.

"Under such circumstances, it is entirely possible to reach a phased agreement."

Hong Kong issue

A fresh row between Washington and Beijing over US&nbsp;legislation on Hong Kong has also threatened to undermine their trade talks and delay a phase one deal that investors had initially hoped to be signed by now.

The US&nbsp;House of Representatives on Wednesday passed two bills to back protesters in Hong Kong and send a warning to China about human rights, with Trump expected to sign them into law.

The measure, which has angered Beijing, would require the State Department to certify at least once a year that Hong Kong retains enough autonomy to qualify for the special US&nbsp;trading consideration that helped it become a world financial centre.

It also would provide for sanctions against officials responsible for human rights violations in the Chinese-ruled city.

"We urge the US&nbsp;side to cease this activity, stop before it's too late and take measures to prevent these measures from becoming law, stop meddling in Hong Kong's affairs and China's affairs," said Geng Shuang, spokesman at the Chinese foreign ministry.

"If they must insist on going down this wrong path China will take strong counter-measures," Geng told reporters at a regular briefing on Thursday.

Demonstrators have protested for months in the streets of Hong Kong, amid increasing violence and fears that Beijing will ramp up its response to stop the civil disobedience.

Trump has 10 days, excluding Sundays, to sign a bill passed by Congress, unless he opts to use his veto.

On Thursday, the ruling Chinese Communist Party’s main newspaper, the People's Daily, urged the United States to "rein in the horse at the edge of the precipice" and stop interfering in Hong Kong matters and China’s internal affairs.

"If the US&nbsp;side obstinately clings to its course, the Chinese side will inevitably adopt forceful measures to take resolute revenge, and all consequences will be borne by the United States," it said in a front-page editorial.

China will strive to reach an initial trade agreement with the United States as both sides keep communication channels open, the Chinese commerce ministry said on Thursday, in an attempt to allay fears talks might be unraveling.

China will strive to reach an initial trade agreement with the United States as both sides keep communication channels open, the Chinese commerce ministry said on Thursday, in an attempt to allay fears talks might be unraveling. China is willing to work with the United States to resolve each other's core concerns on the basis of equality and mutual respect, and will try hard to reach a "phase one" deal, Gao Feng, spokesman at the ministry, told reporters. "This is in line with the interests of both China and the United States, and of the world," Gao said. Economists warn that the prolonged trade dispute between China and the United States is escalating risks to the global economy by disrupting supply chains, discouraging investment and dampening business confidence. Completion of a phase one deal could slide into next year, trade experts and people close to the White House told Reuters previously, as Beijing presses for more extensive tariff rollbacks and the US administration counters with heightened demands of its own. Officials from Beijing had suggested that Chinese President Xi Jinping and US counterpart Donald Trump might sign a deal in early December. Some experts said the next date to watch was Dec 15, when US tariffs on about $156 billion in Chinese goods are set to take effect, including holiday gift items such as electronics and Christmas decorations. In a dinner speech in Beijing on Wednesday, Chinese Vice Premier Liu He said he was "cautiously optimistic" on a phase one deal, Bloomberg News said, citing people who attended the event ahead of a forum organised by Bloomberg LP. Liu, China's chief negotiator at the trade talks, separately told one of the attendees that he was "confused" about the US demands, but was confident the first phase of a deal could be completed nevertheless, Bloomberg added. Gao, when asked about sticking points and whether they were related to Washington's demand for China to buy more US farm goods and the tariff rollbacks, said he did not have more information to disclose beyond the fact that both parties would continue to communicate, and "outside rumours are not accurate." A former Chinese commerce minister told Reuters that both sides should return to the time when the trade war first started. "We should return to the point of origin and cancel all tariffs," Wei Jianguo said on the sidelines of the Bloomberg forum. Wei said he was hopeful for a phase one pact, in light of the pressure on both the US and Chinese economies as the trade war dragged on. "Now, Trump himself is cognizant about the needs of the (upcoming US) elections, and the US economy has also suffered great losses," he said. "Under such circumstances, it is entirely possible to reach a phased agreement." Hong Kong issue A fresh row between Washington and Beijing over US legislation on Hong Kong has also threatened to undermine their trade talks and delay a phase one deal that investors had initially hoped to be signed by now. The US House of Representatives on Wednesday passed two bills to back protesters in Hong Kong and send a warning to China about human rights, with Trump expected to sign them into law. The measure, which has angered Beijing, would require the State Department to certify at least once a year that Hong Kong retains enough autonomy to qualify for the special US trading consideration that helped it become a world financial centre. It also would provide for sanctions against officials responsible for human rights violations in the Chinese-ruled city. "We urge the US side to cease this activity, stop before it's too late and take measures to prevent these measures from becoming law, stop meddling in Hong Kong's affairs and China's affairs," said Geng Shuang, spokesman at the Chinese foreign ministry. "If they must insist on going down this wrong path China will take strong counter-measures," Geng told reporters at a regular briefing on Thursday. Demonstrators have protested for months in the streets of Hong Kong, amid increasing violence and fears that Beijing will ramp up its response to stop the civil disobedience. Trump has 10 days, excluding Sundays, to sign a bill passed by Congress, unless he opts to use his veto. On Thursday, the ruling Chinese Communist Party’s main newspaper, the People's Daily, urged the United States to "rein in the horse at the edge of the precipice" and stop interfering in Hong Kong matters and China’s internal affairs. "If the US side obstinately clings to its course, the Chinese side will inevitably adopt forceful measures to take resolute revenge, and all consequences will be borne by the United States," it said in a front-page editorial.

Will strive to reach 'phase one' trade deal with US: China

US&nbsp;President <a href="https://www.wionews.com/world/trump-says-china-tariffs-will-go-even-higher-without-deal-263234">Donald Trump </a>said on Wednesday the United States is continuing to talk to China but gave no other details, as both sides tried to hammer out a phase one trade deal ahead of looming US tariffs due next month.

"We continue to talk to China. China wants to make a deal. The question is: Do I want to make a deal? Because I like what's happening now," Trump told reporters at the White House.

Trump last month announced an agreement for an initial trade deal with Beijing but no formal agreement has been released. The pact had initially been expected to be signed by mid-November, but experts now say it could be pushed into next year.

Two people briefed on the talks have said Trump wants deeper concessions from China in order to roll back existing tariffs and cancel additional tariffs on some $156 billion in Chinese consumer goods scheduled to take effect Dec&nbsp;15.

On Tuesday, Trump also threatened to raise tariffs if no deal is reached with Beijing.

The ongoing trade dispute between the world's two largest economies have roiled financial markets and threatened global economic growth.

US President Donald Trump said on Wednesday the United States is continuing to talk to China but gave no other details, as both sides tried to hammer out a phase one trade deal ahead of looming US tariffs due next month.

US President Donald Trump said on Wednesday the United States is continuing to talk to China but gave no other details, as both sides tried to hammer out a phase one trade deal ahead of looming US tariffs due next month. "We continue to talk to China. China wants to make a deal. The question is: Do I want to make a deal? Because I like what's happening now," Trump told reporters at the White House. Trump last month announced an agreement for an initial trade deal with Beijing but no formal agreement has been released. The pact had initially been expected to be signed by mid-November, but experts now say it could be pushed into next year. Two people briefed on the talks have said Trump wants deeper concessions from China in order to roll back existing tariffs and cancel additional tariffs on some $156 billion in Chinese consumer goods scheduled to take effect Dec 15. On Tuesday, Trump also threatened to raise tariffs if no deal is reached with Beijing. The ongoing trade dispute between the world's two largest economies have roiled financial markets and threatened global economic growth.

Donald Trump says US is still talking to China on trade

The top 200 Chinese companies spanning consumer, technology, industrial, property and financial industries reported September quarter earnings well ahead of market expectations, setting them up for a strong showing next year, analysts said.

These companies mostly beat lowered market expectations as consumer spending remained strong, boosted by Chinese shoppers who opted to buy at home than to travel abroad, as a weaker yuan inflated travel costs.

Profits at Chinese companies grew 10 per cent&nbsp;in the July-September period, beating the 2 per cent&nbsp;growth rate analysts had predicted, and ahead of&nbsp;China's slowing economic growth rate. Only companies with a market capitalization of over $1 billion and tracked by at least three analysts are covered in this analysis.

"The sectors that were expected to suffer from the <a href="https://www.wionews.com/world/china-us-had-constructive-phone-call-on-trade-report-262656">US-China&nbsp;trade conflict</a> — the tech hardware exporters, textiles and sports goods exporters — have largely outperformed consensus expectations," said Manishi Raychaudhuri, head of equity research at BNP Paribas Asia Pacific.

Raychaudhuri added that earnings growth at Asian companies, excluding Japan, is likely to bounce back in 2020, partly as trade concerns recede.

Below is a report card of the third quarter for Asian companies and expectations for next year.

- Online retail giants <a href="https://www.wionews.com/business-economy/alibaba-launches-134-billion-hong-kong-listing-to-fund-expansion-261906">Alibaba Group Holding Ltd</a> and JD.com Inc posted strong sales as people bought baby products and sports gear. Western luxury and mass-market consumer companies had a good quarter as well.

- Overall, profitability at 1,625 Asian firms fell 5 per cent, versus an expected 6 per cent&nbsp;decline, according to a Reuters analysis of Refinitiv data. Results outperformed estimates for the first time in five quarters.

- Hong Kong-listed firms are not included in this analysis, as most of them announce earnings results on a semi-annual basis.

- Profits at 346 South Korean firms nearly halved, dragged down by lower chip prices and a fluctuation in commodity prices.

- Profit at Samsung Electronics Co Ltd fell 56 per cent. Smaller rival SK Hynix Inc posted its lowest profit in three years. Steelmaker Posco's earnings plunged by a third as iron ore prices rose.

- Profits at 201 Indian firms rose 29.5 per cent, led by consumer staples, financial and healthcare firms and helped by a corporate tax cut.

- Profits at 673 Japanese firms which exclude SoftBank Group Corp, fell 1 per cent, in line with estimates, as the yen firmed and demand fell for export items such as cars and machinery.

- The top three Japanese steelmakers and carmakers Suzuki Motor Corp and Mitsubishi Motors Corp have reduced their annual profit forecasts.

- Analysts expect profits at Asian firms to jump 13 per cent&nbsp;in 2020, versus a 5 per cent&nbsp;estimated increase this year, helped partly by recovering global demand as trade worries ease further.

The top 200 Chinese companies spanning consumer, technology, industrial, property and financial industries reported September quarter earnings well ahead of market expectations, setting them up for a strong showing next year, analysts said.

The top 200 Chinese companies spanning consumer, technology, industrial, property and financial industries reported September quarter earnings well ahead of market expectations, setting them up for a strong showing next year, analysts said. These companies mostly beat lowered market expectations as consumer spending remained strong, boosted by Chinese shoppers who opted to buy at home than to travel abroad, as a weaker yuan inflated travel costs. Profits at Chinese companies grew 10 per cent in the July-September period, beating the 2 per cent growth rate analysts had predicted, and ahead of China's slowing economic growth rate. Only companies with a market capitalization of over $1 billion and tracked by at least three analysts are covered in this analysis. "The sectors that were expected to suffer from the US-China trade conflict — the tech hardware exporters, textiles and sports goods exporters — have largely outperformed consensus expectations," said Manishi Raychaudhuri, head of equity research at BNP Paribas Asia Pacific. Raychaudhuri added that earnings growth at Asian companies, excluding Japan, is likely to bounce back in 2020, partly as trade concerns recede. Below is a report card of the third quarter for Asian companies and expectations for next year. - Online retail giants Alibaba Group Holding Ltd and JD.com Inc posted strong sales as people bought baby products and sports gear. Western luxury and mass-market consumer companies had a good quarter as well. - Overall, profitability at 1,625 Asian firms fell 5 per cent, versus an expected 6 per cent decline, according to a Reuters analysis of Refinitiv data. Results outperformed estimates for the first time in five quarters. - Hong Kong-listed firms are not included in this analysis, as most of them announce earnings results on a semi-annual basis. - Profits at 346 South Korean firms nearly halved, dragged down by lower chip prices and a fluctuation in commodity prices. - Profit at Samsung Electronics Co Ltd fell 56 per cent. Smaller rival SK Hynix Inc posted its lowest profit in three years. Steelmaker Posco's earnings plunged by a third as iron ore prices rose. - Profits at 201 Indian firms rose 29.5 per cent, led by consumer staples, financial and healthcare firms and helped by a corporate tax cut. - Profits at 673 Japanese firms which exclude SoftBank Group Corp, fell 1 per cent, in line with estimates, as the yen firmed and demand fell for export items such as cars and machinery. - The top three Japanese steelmakers and carmakers Suzuki Motor Corp and Mitsubishi Motors Corp have reduced their annual profit forecasts. - Analysts expect profits at Asian firms to jump 13 per cent in 2020, versus a 5 per cent estimated increase this year, helped partly by recovering global demand as trade worries ease further.

What trade war? Chinese companies wow with third quarter report card

Indian shares settled slightly higher on Friday, paring most of the gains made during the day as investors booked profits going into the weekend, with the broader Nifty 50 index posting its first weekly loss in three weeks

The NSE Nifty 50 index closed up 0.2 per cent&nbsp;at 11,895.45 after rising as much as 0.86 per cent, while the S&amp;P BSE&nbsp;Sensex&nbsp;finished 0.1 higher at 40,286.48.

The Nifty 50 index was still down 0.1 per cent&nbsp;for the week, while the&nbsp;Sensex&nbsp;closed 0.08 per cent&nbsp;higher for the week.

"With the present market conditions nobody wants to hold the positions overnight," said Siddharth Sedani, head of equity advisory at Anand Rathi Financial Services.

"We have news on<a href="https://www.wionews.com/world/united-states-and-china-getting-close-to-trade-deal-white-house-economic-adviser-262183"> US&nbsp;and China close to a trade deal</a>, but we never know what changes we will see overnight. There are uncertainties and that's creating a lot of volatility," he added.

White House economic adviser Larry Kudlow said on Thursday the world's two largest economies were in close touch via telephone, and an agreement could be reached soon.

The Nifty public sector undertaking index was the top gainer, rising 3.28 per cent.

Shares of Bharti Infratel closed 8.9 per cent&nbsp;higher and was the top gainer in the Nifty 50, while Indian Oil Corp was the top loser, closing down 3.8 per cent.

Indian shares settled slightly higher on Friday, paring most of the gains made during the day as investors booked profits going into the weekend, with the broader Nifty 50 index posting its first weekly loss in three weeks The NSE Nifty 50 index closed up 0.

Indian shares settled slightly higher on Friday, paring most of the gains made during the day as investors booked profits going into the weekend, with the broader Nifty 50 index posting its first weekly loss in three weeks The NSE Nifty 50 index closed up 0.2 per cent at 11,895.45 after rising as much as 0.86 per cent, while the S&P BSE Sensex finished 0.1 higher at 40,286.48. The Nifty 50 index was still down 0.1 per cent for the week, while the Sensex closed 0.08 per cent higher for the week. "With the present market conditions nobody wants to hold the positions overnight," said Siddharth Sedani, head of equity advisory at Anand Rathi Financial Services. "We have news on US and China close to a trade deal, but we never know what changes we will see overnight. There are uncertainties and that's creating a lot of volatility," he added. White House economic adviser Larry Kudlow said on Thursday the world's two largest economies were in close touch via telephone, and an agreement could be reached soon. The Nifty public sector undertaking index was the top gainer, rising 3.28 per cent. Shares of Bharti Infratel closed 8.9 per cent higher and was the top gainer in the Nifty 50, while Indian Oil Corp was the top loser, closing down 3.8 per cent.

Sensex, Nifty trim gains, close marginally higher

The US&nbsp;President Donald Trump's threat to jack up US&nbsp;tariffs on Chinese goods if the world's two largest economies fail to reach a trade deal could raise the price of cellphones, laptops, and toys less than two weeks before Christmas.

Trump on Tuesday said a trade deal with <a href="https://www.wionews.com/world/trump-says-china-trade-deal-close-but-dashes-hopes-for-signing-details-261767">China was "close," </a>but offered no details and warned that he would raise tariffs "substantially" on Chinese goods without a deal.

Stocks fell on Wednesday in Asia and Europe and initially in the United States as investors digested his comments.

Trump's threat was a reference to previously announced 15 per cent&nbsp;tariffs on about $156 billion worth of Chinese-made consumer goods scheduled to take effect on December&nbsp;15, according multiple trade experts and a source close to the White House. Known as the "4B" list of goods, those tariffs would hit video game consoles, computer monitors, Christmas decorations and other items often given as gifts.

White House advisers said last week the December&nbsp;15 tariffs would likely be averted if a<a href="https://www.wionews.com/world/china-us-agree-tariff-rollback-if-phase-one-trade-deal-is-completed-260641"> "phase one" trade deal </a>was reached. Trump's threat, and the markets' reaction, illustrate how volatile the trade talks between the United States and China remains, and how important they are to the global economy.

The Trump administration hoped to avert the December&nbsp;15 tariffs, if possible, said William Reinsch, a former senior US&nbsp;Commerce official and trade expert at the Center for Strategic and International Studies.

More so than previous tariffs, these would hit consumers particularly hard at a sensitive time, he said. "Trump does not want to do that right before Christmas. The optics would be terrible," he said.

While most goods that Americans will buy before Christmas had been shipped long before, the imposition of the tariffs could trigger some "opportunistic price increases" on the part of retailers, he added.

Reinsch and other experts said they still expected Washington and Beijing to reach a "phase one" agreement before that point, but the timing was looking less certain.

"We're in sort of a dangerous moment because both sides feel they have the upper hand, but I don't think the talks have collapsed," Reinsch said.

Trump could theoretically increase tariffs already imposed on $250 billion of Chinese goods, according to congressional aides, former US&nbsp;officials, and trade experts. There is no indication the White House is considering that at this time.

Trump had agreed in October to skip raising those tariffs to 30 per cent&nbsp;from the 25 per cent&nbsp;rate in place now. That would affect goods ranging from industrial components and semiconductors to furniture and building supplies.

A 15 per cent&nbsp;tariff on about $125 billion of goods that went into effect on September&nbsp;1, including flat-panel television sets, flash memory devices, smart speakers, Bluetooth headphones, bed linens, multifunction printers and many types of footwear, could also be increased, trade experts said.

People familiar with the discussions say that China has asked for these September&nbsp;1 tariffs to be removed completely.

Scott McCandless, principal at PwC, said he was still fairly optimistic about the two sides reaching a "phase one" deal, given the positive impact it would have on key constituencies such as farmers ahead of the 2020 presidential election.

More tariffs on consumer goods aren't likely, he said. "Consumers have been a bright spot in the economy, so they will want to avoid any impact on that," he said.

The US President Donald Trump's threat to jack up US tariffs on Chinese goods if the world's two largest economies fail to reach a trade deal could raise the price of cellphones, laptops, and toys less than two weeks before Christmas.

The US President Donald Trump's threat to jack up US tariffs on Chinese goods if the world's two largest economies fail to reach a trade deal could raise the price of cellphones, laptops, and toys less than two weeks before Christmas. Trump on Tuesday said a trade deal with China was "close," but offered no details and warned that he would raise tariffs "substantially" on Chinese goods without a deal. Stocks fell on Wednesday in Asia and Europe and initially in the United States as investors digested his comments. Trump's threat was a reference to previously announced 15 per cent tariffs on about $156 billion worth of Chinese-made consumer goods scheduled to take effect on December 15, according multiple trade experts and a source close to the White House. Known as the "4B" list of goods, those tariffs would hit video game consoles, computer monitors, Christmas decorations and other items often given as gifts. White House advisers said last week the December 15 tariffs would likely be averted if a "phase one" trade deal was reached. Trump's threat, and the markets' reaction, illustrate how volatile the trade talks between the United States and China remains, and how important they are to the global economy. The Trump administration hoped to avert the December 15 tariffs, if possible, said William Reinsch, a former senior US Commerce official and trade expert at the Center for Strategic and International Studies. More so than previous tariffs, these would hit consumers particularly hard at a sensitive time, he said. "Trump does not want to do that right before Christmas. The optics would be terrible," he said. While most goods that Americans will buy before Christmas had been shipped long before, the imposition of the tariffs could trigger some "opportunistic price increases" on the part of retailers, he added. Reinsch and other experts said they still expected Washington and Beijing to reach a "phase one" agreement before that point, but the timing was looking less certain. "We're in sort of a dangerous moment because both sides feel they have the upper hand, but I don't think the talks have collapsed," Reinsch said. Trump could theoretically increase tariffs already imposed on $250 billion of Chinese goods, according to congressional aides, former US officials, and trade experts. There is no indication the White House is considering that at this time. Trump had agreed in October to skip raising those tariffs to 30 per cent from the 25 per cent rate in place now. That would affect goods ranging from industrial components and semiconductors to furniture and building supplies. A 15 per cent tariff on about $125 billion of goods that went into effect on September 1, including flat-panel television sets, flash memory devices, smart speakers, Bluetooth headphones, bed linens, multifunction printers and many types of footwear, could also be increased, trade experts said. People familiar with the discussions say that China has asked for these September 1 tariffs to be removed completely. Scott McCandless, principal at PwC, said he was still fairly optimistic about the two sides reaching a "phase one" deal, given the positive impact it would have on key constituencies such as farmers ahead of the 2020 presidential election. More tariffs on consumer goods aren't likely, he said. "Consumers have been a bright spot in the economy, so they will want to avoid any impact on that," he said.

Trump threat of more China tariffs could hit consumer goods before Christmas

China's&nbsp;factory output&nbsp;growth&nbsp;slowed significantly more than expected in&nbsp;October, as weakness in global and domestic demand and the drawn-out <a href="https://www.wionews.com/.../global-markets-asian-shares-a-sea-of-red-as-hk- chaos-hits-sentiment-261277">Sino-US&nbsp;trade&nbsp;war</a> weighed on broad segments of the world's second-largest economy.

Industrial production rose 4.7 per cent&nbsp;year-on-year in&nbsp;October, data from the <a href="https://www.wionews.com/.../chinas-q3-gdp-growth-slows-to-6-slowest-in-27 -years-256577">National Bureau of Statistics</a> released on Thursday showed, below the median forecast of 5.4 per cent&nbsp;growth&nbsp;in a Reuters poll and slower than September's 5.8 per cent.

Indicators showed other sectors also slowed significantly and missed forecasts with retail sales&nbsp;growth&nbsp;back near a 16-year trough and fixed asset investment&nbsp;growth&nbsp;the weakest on record.

The disappointing numbers show China off to a rough start in the final three months of 2019 and will bolster calls for Beijing to roll out fresh support after third-quarter&nbsp;growth&nbsp;slowed to its weakest in almost three decades, with factory production bruised by the&nbsp;trade&nbsp;war with Washington.

Asian stocks fell after the soft data, which reinforced concerns the&nbsp;trade&nbsp;war was hurting one of the world's major drivers of economic&nbsp;growth.

"These data support our view that&nbsp;growth&nbsp;headwinds remain&nbsp;strong and the economy has yet to hit bottom," said Nomura in a note, adding that GDP&nbsp;growth&nbsp;is expected to slow to 5.8 per cent&nbsp;in the fourth quarter from 6.0 per cent&nbsp;in the third quarter.

Broad activity in&nbsp;China's&nbsp;factory sector remained weak in&nbsp;October&nbsp;with producer prices falling at their fastest pace in more than three years and manufacturing activity mired in contraction for a six straight month, recent indicators showed.

Thursday's data showed the value of delivered industrial exports fell 3.8 per cent&nbsp;on-year in&nbsp;October, marking the third straight month of declines.

China's&nbsp;steel output fell to a seven-month low in&nbsp;October&nbsp;while the cement production contracted for the first time in over a year, compared with a year earlier.

The tariff war between China and the United States has hit global demand, disrupted supply chains and upended financial markets.

Other major trading powers have also felt the blow from the dispute with Japan's economy grinding to a near standstill in the third quarter, posting its weakest&nbsp;growth&nbsp;in a year.

While some signs of recent progress in&nbsp;trade&nbsp;negotiations between the superpowers have cheered financial market, officials from both sides have so far avoided any firm commitments to end their dispute.

That uncertainty has weighed persistently on manufacturers and their order books in recent months and raised doubts about the prospects of any breakthrough.

"Even if a minor deal is agreed upon in the coming months, this would merely allow the focus to shift to the more intractable issues that we think will eventually lead the&nbsp;trade&nbsp;talks to break down," Capital Economics China Economist Martin Lynge Rasmussen said.

Fixed asset investment, a key driver of economic&nbsp;growth, rose just 5.2 per cent&nbsp;from January-October, against expected&nbsp;growth&nbsp;of 5.4 per cent&nbsp;and the weakest pace since Reuters record began in 1996.

Infrastructure investment rose 4.2 per cent&nbsp;in the first 10 months, slowing from a 4.5 per cent&nbsp;gain in January-September.

In a bid to stop this trend,&nbsp;China's&nbsp;State Council on Wednesday pledged to lower the minimum capital ratio requirement for some infrastructure investment projects.

At the same time, local governments are facing increasing fiscal strains as tax cuts and the broader slowdown reduce revenues, hampering the big infrastructure projects Beijing needs to revive&nbsp;growth.

Meanwhile,&nbsp;China's&nbsp;property investment and sales&nbsp;growth&nbsp;both eased to three-months low in&nbsp;October, suggesting a critical pillar of the economy is softening.

Retail sales rose 7.2 per cent&nbsp;year-on-year in&nbsp;October, missing expected&nbsp;growth&nbsp;of 7.9 per cent&nbsp;and matching the more than 16-year low hit in April.

Consumers have been hit with higher food prices over the past few months, as pork and other meat prices soared. For&nbsp;October, they bought fewer garments, jewellery, automobiles from a year earlier.

To prop up&nbsp;growth,&nbsp;China's&nbsp;central bank this month cut the interest rate on its one-year medium-term lending facility loans, a key policy rate, for the first time since early 2016.

Analysts said the cut, while modest, maybe a sign the central bank is becoming more proactive and looking to ease worries that higher inflation will prevent it from delivering fresh stimulus.

"Economic performance still faces a fairly large number of risks and challenges and these cannot be underestimated. In the next stage, we will...continue to fully implement counter-cyclical adjustment policies," statistics bureau spokeswoman Liu Aihua told reporters in a briefing.

Earlier this week, Premier Li Keqiang flagged the need for the more effective use of economic support tools, such as "counter-cyclical adjustments" and local government special bonds.

In a front-page editorial on Thursday, the state-owned Securities Times said authorities should tolerate longer-term increases in&nbsp;China's&nbsp;debt-to-gross domestic product ratio to allow for changing economic conditions.

China's factory output growth slowed significantly more than expected in October, as weakness in global and domestic demand and the drawn-out Sino-US trade war weighed on broad segments of the world's second-largest economy.

China's factory output growth slowed significantly more than expected in October, as weakness in global and domestic demand and the drawn-out Sino-US trade war weighed on broad segments of the world's second-largest economy. Industrial production rose 4.7 per cent year-on-year in October, data from the National Bureau of Statistics released on Thursday showed, below the median forecast of 5.4 per cent growth in a Reuters poll and slower than September's 5.8 per cent. Indicators showed other sectors also slowed significantly and missed forecasts with retail sales growth back near a 16-year trough and fixed asset investment growth the weakest on record. The disappointing numbers show China off to a rough start in the final three months of 2019 and will bolster calls for Beijing to roll out fresh support after third-quarter growth slowed to its weakest in almost three decades, with factory production bruised by the trade war with Washington. Asian stocks fell after the soft data, which reinforced concerns the trade war was hurting one of the world's major drivers of economic growth. "These data support our view that growth headwinds remain strong and the economy has yet to hit bottom," said Nomura in a note, adding that GDP growth is expected to slow to 5.8 per cent in the fourth quarter from 6.0 per cent in the third quarter. Broad activity in China's factory sector remained weak in October with producer prices falling at their fastest pace in more than three years and manufacturing activity mired in contraction for a six straight month, recent indicators showed. Thursday's data showed the value of delivered industrial exports fell 3.8 per cent on-year in October, marking the third straight month of declines. China's steel output fell to a seven-month low in October while the cement production contracted for the first time in over a year, compared with a year earlier. The tariff war between China and the United States has hit global demand, disrupted supply chains and upended financial markets. Other major trading powers have also felt the blow from the dispute with Japan's economy grinding to a near standstill in the third quarter, posting its weakest growth in a year. While some signs of recent progress in trade negotiations between the superpowers have cheered financial market, officials from both sides have so far avoided any firm commitments to end their dispute. That uncertainty has weighed persistently on manufacturers and their order books in recent months and raised doubts about the prospects of any breakthrough. "Even if a minor deal is agreed upon in the coming months, this would merely allow the focus to shift to the more intractable issues that we think will eventually lead the trade talks to break down," Capital Economics China Economist Martin Lynge Rasmussen said. Fixed asset investment, a key driver of economic growth, rose just 5.2 per cent from January-October, against expected growth of 5.4 per cent and the weakest pace since Reuters record began in 1996. Infrastructure investment rose 4.2 per cent in the first 10 months, slowing from a 4.5 per cent gain in January-September. In a bid to stop this trend, China's State Council on Wednesday pledged to lower the minimum capital ratio requirement for some infrastructure investment projects. At the same time, local governments are facing increasing fiscal strains as tax cuts and the broader slowdown reduce revenues, hampering the big infrastructure projects Beijing needs to revive growth. Meanwhile, China's property investment and sales growth both eased to three-months low in October, suggesting a critical pillar of the economy is softening. Retail sales rose 7.2 per cent year-on-year in October, missing expected growth of 7.9 per cent and matching the more than 16-year low hit in April. Consumers have been hit with higher food prices over the past few months, as pork and other meat prices soared. For October, they bought fewer garments, jewellery, automobiles from a year earlier. To prop up growth, China's central bank this month cut the interest rate on its one-year medium-term lending facility loans, a key policy rate, for the first time since early 2016. Analysts said the cut, while modest, maybe a sign the central bank is becoming more proactive and looking to ease worries that higher inflation will prevent it from delivering fresh stimulus. "Economic performance still faces a fairly large number of risks and challenges and these cannot be underestimated. In the next stage, we will...continue to fully implement counter-cyclical adjustment policies," statistics bureau spokeswoman Liu Aihua told reporters in a briefing. Earlier this week, Premier Li Keqiang flagged the need for the more effective use of economic support tools, such as "counter-cyclical adjustments" and local government special bonds. In a front-page editorial on Thursday, the state-owned Securities Times said authorities should tolerate longer-term increases in China's debt-to-gross domestic product ratio to allow for changing economic conditions.

China's main growth engines falter in October on trade frictions

China and the United States are holding in-depth discussions on a <a href="https://www.wionews.com/world/china-us-agree-tariff-rollback-if-phase-one-trade-deal-is-completed-260641">"phase one" trade agreement</a>, and cancelling tariffs is an important condition to reach such a deal, the Chinese commerce ministry said on Thursday.

The degree of tariff cancellation should fully reflect the importance of a phase one agreement, ministry spokesman Gao Feng told a regular briefing.

On Tuesday, US&nbsp;President Donald Trump said a trade <a href="https://www.wionews.com/world/trump-says-china-trade-deal-close-but-dashes-hopes-for-signing-details-261767">deal with China was "close,"</a> but offered no details and warned that he would raise tariffs "substantially" on Chinese goods without such a deal.

Trump's threat was a reference to previously announced tariffs of 15 per cent&nbsp;on about $156 billion of Chinese consumer goods set to take effect on December&nbsp;15, according to trade experts and a source close to the White House.

Those tariffs would hit video game consoles, computer monitors, Christmas decorations and items given as gifts during the approaching festive season.

Last week, White House advisers said the December&nbsp;15 tariffs would probably be averted if a phase one trade deal was reached.

Highlighting the volatile state of play in the 16-month long trade war, officials of both sides had said last week they had a deal to roll back tariffs, only to have Trump deny any deal had been agreed.

Trump has used tariffs on billions of dollars of Chinese goods as his primary weapon in the trade war, which is aimed at forcing major changes in China's trade and industrial policies.

The United States is demanding that China end the theft and forced transfer of American intellectual property and curb subsidies to state-owned enterprises, while granting US&nbsp;companies more access to China's markets.

Trump also wants China to vastly increase its purchases of US&nbsp;farm products.

China and the United States were on the brink of a deal in May when Beijing backed away, prompting Trump to raise tariff rates and embark on new rounds of punitive duties.

If an interim deal is finished and signed, it is widely expected to include a US&nbsp;pledge to scrap tariffs scheduled for December&nbsp;15.

But China was also seeking cancellation of other US&nbsp;tariffs put in place since July 2018.

Gao said last week that both countries must simultaneously cancel some tariffs on each other's goods to strike a phase one pact.

China and the United States are holding in-depth discussions on a "phase one" trade agreement, and cancelling tariffs is an important condition to reach such a deal, the Chinese commerce ministry said on Thursday.

China and the United States are holding in-depth discussions on a "phase one" trade agreement, and cancelling tariffs is an important condition to reach such a deal, the Chinese commerce ministry said on Thursday. The degree of tariff cancellation should fully reflect the importance of a phase one agreement, ministry spokesman Gao Feng told a regular briefing. On Tuesday, US President Donald Trump said a trade deal with China was "close," but offered no details and warned that he would raise tariffs "substantially" on Chinese goods without such a deal. Trump's threat was a reference to previously announced tariffs of 15 per cent on about $156 billion of Chinese consumer goods set to take effect on December 15, according to trade experts and a source close to the White House. Those tariffs would hit video game consoles, computer monitors, Christmas decorations and items given as gifts during the approaching festive season. Last week, White House advisers said the December 15 tariffs would probably be averted if a phase one trade deal was reached. Highlighting the volatile state of play in the 16-month long trade war, officials of both sides had said last week they had a deal to roll back tariffs, only to have Trump deny any deal had been agreed. Trump has used tariffs on billions of dollars of Chinese goods as his primary weapon in the trade war, which is aimed at forcing major changes in China's trade and industrial policies. The United States is demanding that China end the theft and forced transfer of American intellectual property and curb subsidies to state-owned enterprises, while granting US companies more access to China's markets. Trump also wants China to vastly increase its purchases of US farm products. China and the United States were on the brink of a deal in May when Beijing backed away, prompting Trump to raise tariff rates and embark on new rounds of punitive duties. If an interim deal is finished and signed, it is widely expected to include a US pledge to scrap tariffs scheduled for December 15. But China was also seeking cancellation of other US tariffs put in place since July 2018. Gao said last week that both countries must simultaneously cancel some tariffs on each other's goods to strike a phase one pact.

China holds in-depth talks with US on phase one of trade deal

The <a href="https://www.wionews.com/world/china-us-agree-tariff-rollback-if-phase-one-trade-deal-is-completed-260641">US-China trade war</a> is unlikely to see a permanent truce over the coming year, and while concerns have eased over a US&nbsp;recession, an economic rebound is also not expected any time soon, according to a Reuters poll of economists.

The November&nbsp;8-13 Reuters poll of over 100 economists showed a quarter-point Federal Reserve interest-rate cut would come in the third quarter next year; a poll three weeks ago had predicted a cut early next year.

That shift in expectations came after Fed Chairman Jerome Powell indicated that while the central bank was cautious about the trade conflict and slowing growth, it would now pause after cutting rates three times&nbsp;this year to 1.50-1.75 per cent.

While most major central banks are concerned about the ongoing trade dispute, stocks on Wall Street have touched record highs over the past few months on hopes for a resolution between Washington and Beijing.

But economists do not share the same view. While the median probability of a recession for the coming year fell to 25 per cent&nbsp;from 35 per cent&nbsp;last month, the economic growth outlook remained modest.

Over three-quarters of 53 economists who answered an additional question said a permanent truce in the US-China trade war was unlikely over the coming year.

"The global economic backdrop is going to remain tough, the US&nbsp;dollar is going to remain relatively firm and we are less positive on the trade story than perhaps the market is currently pricing. The talk of (tariff) rollbacks and stuff like that – we are not as certain that will actually come through," said James Knightley, chief international economist at ING.

"So, we think there is still scope for a weaker growth environment – with inflation being pretty benign - to give the Fed the opportunity to come in with a little bit more stimulus."

<a href="https://www.wionews.com/world/trump-says-china-trade-deal-close-but-dashes-hopes-for-signing-details-261767">President Donald Trump</a> said on Friday he had not agreed&nbsp;to rollbacks of US&nbsp;tariffs sought by China. Officials from both countries on Thursday said China and the United States had agreed to roll back tariffs on each others’ goods in a “phase one” trade deal.

The US&nbsp;economy is forecast to have expanded at an annualised pace of 1.9 per cent&nbsp;in the July-Sept period, slightly down from 2.0 per cent&nbsp;in the second quarter. Growth is expected to hover around that rate in each quarter through to the second half of 2021, according to economists.

Over 80 per cent&nbsp;of 52 respondents to an additional question said the Fed had done enough to delay the next recession but that already-modest growth forecasts were largely left unchanged.

"I think in terms of the risks, they are probably still tilted towards the Fed maybe cutting rates once more at some point in the coming months if growth slows further, certainly if there is some renewed breakdown in trade talks," said Andrew Hunter, senior US&nbsp;economist at Capital Economics.

"But barring that, it does look like they have done enough to avert a recession. In our baseline forecast, there is growth slowing a little bit further over the next couple of quarters but starting to recover next year."

Economists were almost evenly split about whether there would be any interest rate cuts.

While the median showed the Fed would next trim rates in the third quarter of 2020, taking the fed funds rate to 1.25 per cent-1.50 per cent, only a small majority of economists forecast at least one cut.

A strong minority - over 46 per cent&nbsp;of 93 economists - expected rates to be unchanged until at least 2021, compared to 31 per cent&nbsp;of 84 economists in October, in line with interest rate futures.

Asked about the Fed's next interest rate move, 55 of 75 economists said it would be a cut.

The Fed's preferred measure of inflation - the change in the core personal consumption expenditures price index - is expected to be 2.0 per cent&nbsp;in the first quarter and then to remain at 1.9 per cent&nbsp;at least until the second quarter of 2021.

"Limited inflation pressure will allow the Federal Reserve to err on the side of accommodation. The Federal Open Market Committee will probably remain on the sidelines for the next several months," said Michael Moran, chief economist at Daiwa Capital Markets.

"However, if momentum begins to fade as we expect, the Fed will probably make an effort to sustain the expansion."

The US-China trade war is unlikely to see a permanent truce over the coming year, and while concerns have eased over a US recession, an economic rebound is also not expected any time soon, according to a Reuters poll of economists.

The US-China trade war is unlikely to see a permanent truce over the coming year, and while concerns have eased over a US recession, an economic rebound is also not expected any time soon, according to a Reuters poll of economists. The November 8-13 Reuters poll of over 100 economists showed a quarter-point Federal Reserve interest-rate cut would come in the third quarter next year; a poll three weeks ago had predicted a cut early next year. That shift in expectations came after Fed Chairman Jerome Powell indicated that while the central bank was cautious about the trade conflict and slowing growth, it would now pause after cutting rates three times this year to 1.50-1.75 per cent. While most major central banks are concerned about the ongoing trade dispute, stocks on Wall Street have touched record highs over the past few months on hopes for a resolution between Washington and Beijing. But economists do not share the same view. While the median probability of a recession for the coming year fell to 25 per cent from 35 per cent last month, the economic growth outlook remained modest. Over three-quarters of 53 economists who answered an additional question said a permanent truce in the US-China trade war was unlikely over the coming year. "The global economic backdrop is going to remain tough, the US dollar is going to remain relatively firm and we are less positive on the trade story than perhaps the market is currently pricing. The talk of (tariff) rollbacks and stuff like that – we are not as certain that will actually come through," said James Knightley, chief international economist at ING. "So, we think there is still scope for a weaker growth environment – with inflation being pretty benign - to give the Fed the opportunity to come in with a little bit more stimulus." President Donald Trump said on Friday he had not agreed to rollbacks of US tariffs sought by China. Officials from both countries on Thursday said China and the United States had agreed to roll back tariffs on each others’ goods in a “phase one” trade deal. The US economy is forecast to have expanded at an annualised pace of 1.9 per cent in the July-Sept period, slightly down from 2.0 per cent in the second quarter. Growth is expected to hover around that rate in each quarter through to the second half of 2021, according to economists. Over 80 per cent of 52 respondents to an additional question said the Fed had done enough to delay the next recession but that already-modest growth forecasts were largely left unchanged. "I think in terms of the risks, they are probably still tilted towards the Fed maybe cutting rates once more at some point in the coming months if growth slows further, certainly if there is some renewed breakdown in trade talks," said Andrew Hunter, senior US economist at Capital Economics. "But barring that, it does look like they have done enough to avert a recession. In our baseline forecast, there is growth slowing a little bit further over the next couple of quarters but starting to recover next year." Economists were almost evenly split about whether there would be any interest rate cuts. While the median showed the Fed would next trim rates in the third quarter of 2020, taking the fed funds rate to 1.25 per cent-1.50 per cent, only a small majority of economists forecast at least one cut. A strong minority - over 46 per cent of 93 economists - expected rates to be unchanged until at least 2021, compared to 31 per cent of 84 economists in October, in line with interest rate futures. Asked about the Fed's next interest rate move, 55 of 75 economists said it would be a cut. The Fed's preferred measure of inflation - the change in the core personal consumption expenditures price index - is expected to be 2.0 per cent in the first quarter and then to remain at 1.9 per cent at least until the second quarter of 2021. "Limited inflation pressure will allow the Federal Reserve to err on the side of accommodation. The Federal Open Market Committee will probably remain on the sidelines for the next several months," said Michael Moran, chief economist at Daiwa Capital Markets. "However, if momentum begins to fade as we expect, the Fed will probably make an effort to sustain the expansion."

Trade truce unlikely in 2020 but US recession fears recede: Study

President Donald Trump on Tuesday dangled the prospect of completing an <a href="https://www.wionews.com/world/china-us-agree-tariff-rollback-if-phase-one-trade-deal-is-completed-260641">initial trade deal with China</a> "soon," but offered no new details on negotiations in a campaign-style speech touting his administration's economic record.

<a href="https://www.wionews.com/business-economy/global-markets-asian-shares-a-sea-of-red-as-hk-chaos-hits-sentiment-261277">Markets had been on edge</a> about Trump's highly anticipated remarks to The Economic Club of New York, but barely moved after the speech, which contained no major policy announcements. Rumours early on Tuesday that Trump might announce a venue and date for signing a trade deal with Chinese President Xi Jinping proved unfounded.

Trump said US&nbsp;and Chinese negotiators were "close" to a "phase one" trade deal, but largely repeated well-worn rhetoric about China's "cheating" on trade.

"They are dying to make a deal. We're the ones that are deciding whether or not we want to make a deal," Trump said, echoing remarks he made on Saturday.

"We're close," he said. "A significant phase one trade deal with China could happen. Could happen soon. But we will only accept a deal if it's good for the United States and our workers and our great companies."

Trump said he would raise tariffs on Chinese goods "very substantially" if China does not make a deal with the United States. "And that's going to be true for other countries that mistreat us too," he added.

White House economic adviser Larry Kudlow later told CNBC that the phase one agreement could include some adjustments to tariffs already in place, but neither side would agree to such steps "until the entire deal is put together."

US&nbsp;stocks largely drifted sideways as Trump spoke, holding onto modest gains. The S&amp;P 500 was up about 0.3 per cent&nbsp;in afternoon trade, close to a record high. The response in bond and foreign exchange markets was equally subdued.

"The only thing that's maybe new is that he did not announce a date and a time for a signing ceremony," Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York, said of the speech. "Where markets had been hoping for that, those hopes were dashed," he added, saying that buying of riskier assets faded when it became apparent that no major announcement would be made.

Trump once again took aim at the Federal Reserve's monetary policy decisions that have left US interest rates higher than many other economies and said he would prefer negative rates.

The Fed has cut interest rates three times since July, following a string of nine increases since late 2015. Trump has repeatedly railed against the Fed for not lowering rates even more.

"Remember we are actively competing with nations that openly cut interest rates so that many are now actually getting paid when they pay off their loan, known as negative interest. Who ever heard of such a thing?" Trump said in his remarks.

"Give me some of that. Give me some of that money. I want some of that money. Our Federal Reserve doesn't let us do it," he said.

But Kudlow told CNBC that he did not believe negative rates were needed given the strong US&nbsp;economic performance. "I don’t think the United states needs negatives rates ... because our economy is in very good shape," Kudlow said.

Trump touted tax cuts passed by Republicans in 2017, saying they have created an unprecedented economic boom, and said there was room for further reductions in rates too. He alluded to a Republican "tax cut 2.0" plan that has been stalled by Democrats in the House of Representatives.

As he often has, Trump pointed to the stock market's run-up as a validation of his economic and trade policies.

The S&amp;P is up more than 36 per cent&nbsp;since Trump took office, though two-thirds of that gain occurred in his first year in office before he began imposing tariffs on imports from China. Stocks have found the going far more choppy since the first wave of tariffs were imposed in 2018, though all three major indexes hit record highs last week.

The latest back-and-forth between Washington and Beijing illustrates the bumpy state of play. Last week, officials from both sides said they had a deal to roll back tariffs, only to have Trump deny any deal had been agreed on.

Tuesday was Trump's second appearance at the storied Economic Club of New York, which has hosted US&nbsp;presidents including Woodrow Wilson and John F. Kennedy, as well as foreign leaders like former Soviet President Mikhail Gorbachev&nbsp;and Chinese Premier Li Keqiang.Trump previously addressed the organization in 2016 when running for president.

President Donald Trump on Tuesday dangled the prospect of completing an initial trade deal with China "soon," but offered no new details on negotiations in a campaign-style speech touting his administration's economic record.

President Donald Trump on Tuesday dangled the prospect of completing an initial trade deal with China "soon," but offered no new details on negotiations in a campaign-style speech touting his administration's economic record. Markets had been on edge about Trump's highly anticipated remarks to The Economic Club of New York, but barely moved after the speech, which contained no major policy announcements. Rumours early on Tuesday that Trump might announce a venue and date for signing a trade deal with Chinese President Xi Jinping proved unfounded. Trump said US and Chinese negotiators were "close" to a "phase one" trade deal, but largely repeated well-worn rhetoric about China's "cheating" on trade. "They are dying to make a deal. We're the ones that are deciding whether or not we want to make a deal," Trump said, echoing remarks he made on Saturday. "We're close," he said. "A significant phase one trade deal with China could happen. Could happen soon. But we will only accept a deal if it's good for the United States and our workers and our great companies." Trump said he would raise tariffs on Chinese goods "very substantially" if China does not make a deal with the United States. "And that's going to be true for other countries that mistreat us too," he added. White House economic adviser Larry Kudlow later told CNBC that the phase one agreement could include some adjustments to tariffs already in place, but neither side would agree to such steps "until the entire deal is put together." US stocks largely drifted sideways as Trump spoke, holding onto modest gains. The S&P 500 was up about 0.3 per cent in afternoon trade, close to a record high. The response in bond and foreign exchange markets was equally subdued. "The only thing that's maybe new is that he did not announce a date and a time for a signing ceremony," Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York, said of the speech. "Where markets had been hoping for that, those hopes were dashed," he added, saying that buying of riskier assets faded when it became apparent that no major announcement would be made. Trump once again took aim at the Federal Reserve's monetary policy decisions that have left US interest rates higher than many other economies and said he would prefer negative rates. The Fed has cut interest rates three times since July, following a string of nine increases since late 2015. Trump has repeatedly railed against the Fed for not lowering rates even more. "Remember we are actively competing with nations that openly cut interest rates so that many are now actually getting paid when they pay off their loan, known as negative interest. Who ever heard of such a thing?" Trump said in his remarks. "Give me some of that. Give me some of that money. I want some of that money. Our Federal Reserve doesn't let us do it," he said. But Kudlow told CNBC that he did not believe negative rates were needed given the strong US economic performance. "I don’t think the United states needs negatives rates ... because our economy is in very good shape," Kudlow said. Trump touted tax cuts passed by Republicans in 2017, saying they have created an unprecedented economic boom, and said there was room for further reductions in rates too. He alluded to a Republican "tax cut 2.0" plan that has been stalled by Democrats in the House of Representatives. As he often has, Trump pointed to the stock market's run-up as a validation of his economic and trade policies. The S&P is up more than 36 per cent since Trump took office, though two-thirds of that gain occurred in his first year in office before he began imposing tariffs on imports from China. Stocks have found the going far more choppy since the first wave of tariffs were imposed in 2018, though all three major indexes hit record highs last week. The latest back-and-forth between Washington and Beijing illustrates the bumpy state of play. Last week, officials from both sides said they had a deal to roll back tariffs, only to have Trump deny any deal had been agreed on. Tuesday was Trump's second appearance at the storied Economic Club of New York, which has hosted US presidents including Woodrow Wilson and John F. Kennedy, as well as foreign leaders like former Soviet President Mikhail Gorbachev and Chinese Premier Li Keqiang.Trump previously addressed the organization in 2016 when running for president.

Trump says China trade deal 'close' but dashes hopes for signing details

Indian markets led by banking and public sector undertakings (PSUs) opened with slight gains as investors awaited the retail inflation data and outcome of cabinet meeting due to be announced later today.

As per the latest trends, BSE Sensex rose 19.6 points or 0.05 per cent at 40,364.71, while NSE Nifty was up 4.95 points or 0.04 per cent at 11,918.4.&nbsp;

"Investors are expecting details about stake sale in some PSUs from today's cabinet meeting," said AK Prabhakar, head of research at IDBI Capital in Mumbai, reported Reuters.&nbsp;

India's industrial output fell at the fastest pace in more than six years in September, which added to the series of indicators that suggest an economic slowdown. Britannia Industries share' rose upto 3.6 per cent after the company posted a higher consolidated net profit for the quarter ending 
September on Monday and was the top gainer on Nifty today.

The shares of Yes Bank shares rose upto 3.15 per cent after a report claiming that Hero Corporate Services chairman was in talks to buy a stake in the lender. Along with Yes Bank, TCS, RIL, HCL Tech, Asian Paints, HUL and HDFC Bank, were other gainers in the Sensex pack, rising up to 2.05 per cent in morning trade.

The Asian markets and Wall Street witnessed a fall amid the deadlock in the US-China trade talks and concerns about escalating unrest in Hong Kong hurt demand for risky assets. The US President Donald Trump on Tuesday dubbed China as a cheater in trade despite seeking a truce that will settle the 18-month trade tussle between the United States and China. The markets in Shanghai, Hong Kong, Tokyo and Seoul were trading up to 1.76 per cent lower due to growing protests in Hong Kong.&nbsp;

On Monday, the <a href="https://www.wionews.com/business-economy/sensex-closes-in-the-green-at-40345-nifty-bank-gains-by-12-per-cent-261425">Sensex </a>gained 21.47 points or 0.05 per cent and closed at 40,345.08. Similarly, the Nifty rose 5.30 points, or 0.04 per cent, at 11,913.45. The markets were closed on Tuesday for Guru Nanak Jayanti.&nbsp;

The Indian rupee shed 19 paise (intra-day) against the US dollar to trade at 71.66 in early session on Wednesday.

(with inputs from agencies)

 
&nbsp;

Indian markets led by banking and public sector undertakings (PSUs) opened with slight gains as investors awaited the retail inflation data and outcome of cabinet meeting due to be announced later today.

Indian markets led by banking and public sector undertakings (PSUs) opened with slight gains as investors awaited the retail inflation data and outcome of cabinet meeting due to be announced later today. As per the latest trends, BSE Sensex rose 19.6 points or 0.05 per cent at 40,364.71, while NSE Nifty was up 4.95 points or 0.04 per cent at 11,918.4. "Investors are expecting details about stake sale in some PSUs from today's cabinet meeting," said AK Prabhakar, head of research at IDBI Capital in Mumbai, reported Reuters. India's industrial output fell at the fastest pace in more than six years in September, which added to the series of indicators that suggest an economic slowdown. Britannia Industries share' rose upto 3.6 per cent after the company posted a higher consolidated net profit for the quarter ending September on Monday and was the top gainer on Nifty today. The shares of Yes Bank shares rose upto 3.15 per cent after a report claiming that Hero Corporate Services chairman was in talks to buy a stake in the lender. Along with Yes Bank, TCS, RIL, HCL Tech, Asian Paints, HUL and HDFC Bank, were other gainers in the Sensex pack, rising up to 2.05 per cent in morning trade. The Asian markets and Wall Street witnessed a fall amid the deadlock in the US-China trade talks and concerns about escalating unrest in Hong Kong hurt demand for risky assets. The US President Donald Trump on Tuesday dubbed China as a cheater in trade despite seeking a truce that will settle the 18-month trade tussle between the United States and China. The markets in Shanghai, Hong Kong, Tokyo and Seoul were trading up to 1.76 per cent lower due to growing protests in Hong Kong. On Monday, the Sensex gained 21.47 points or 0.05 per cent and closed at 40,345.08. Similarly, the Nifty rose 5.30 points, or 0.04 per cent, at 11,913.45. The markets were closed on Tuesday for Guru Nanak Jayanti. The Indian rupee shed 19 paise (intra-day) against the US dollar to trade at 71.66 in early session on Wednesday. (with inputs from agencies)

Indian markets steady in early trade ahead of cabinet meeting, inflation figures

Asian shares sank on Monday, the safe-haven yen rose and gold jumped as fresh violence broke out in <a href="https://www.wionews.com/videos/hong-kong-protests-turn-violent-police-shoot-protester-amid-clashes-261252">Hong Kong</a>, while uncertainty still remained over whether the United States and China could end their damaging trade war.

Hong Kong's Hang Seng index led the losses in Asia, down more than 2 per cent, after police fired live rounds at protestors on the eastern side of Hong Kong island. Cable TV and other Hong Kong media reported at least one protester being wounded. Video footage showed a protester lying in a pool of blood.

Chinese shares too faltered with the blue-chip CSI300 index down 1.3 per cent. South Korea's KOSPI lost 0.4 per cent.

Japan's Nikkei gave up early gains to drift away from a recent 13-month high after data showed the country's core machinery orders fell for a third straight month.

Australian shares bucked the downbeat trend, rising 0.55 per cent&nbsp;to a two-week high.

That left MSCI's broadest index of Asia-Pacific shares outside Japan down 0.5 per cent.

"The<a href="https://www.wionews.com/world/china-us-agree-tariff-rollback-if-phase-one-trade-deal-is-completed-260641"> China-US&nbsp;trade war</a> and the Hong Kong protest are combining to cast a negative pall on Asian markets today," said James McGlew, analyst at stockbroking firm Argonaut.

"Hong Kong protests have been dragging on for a while and the view from the financial world is that it's really starting to bite now. The further this drags on it's certainly going to be very negative."

In Asian hours on Monday, E-minis for the S&amp;P500 were 0.25 per cent&nbsp;lower indicating a weak open later in the day.

US&nbsp;bond markets are closed on Monday, but currency and equity markets are open.

Gold, which rises during times of uncertainty, rebounded from a three-month low touched on Friday to be last up 0.3 per cent&nbsp;at $1,462.11 an ounce.

In currencies, the Japanese yen gained on the dollar to 109.01 while the Australian dollar, a liquid gauge for risk, was off slightly at $0.6853.

The dollar index was a touch softer at 98.33 while the euro ticked up to $1.1022.

Market attention was also on the US-China trade talks.

<a href="https://www.wionews.com/world/trump-faces-perilous-test-as-impeachment-hearings-open-261230">US&nbsp;President Donald Trump </a>told reporters on Saturday that talks with China had moved more slowly than he would have liked, but added that Beijing wanted a deal more than he did.

That was a more upbeat tone than just a few days earlier when he had stressed that the White House would not agree to a full rollback of existing tariffs, remarks that hit stock prices and the dollar.

"Despite his bluster that 'China wants a trade deal more than I do', markets sense that Trump is likely quite keen to call a truce on what is becoming a serious U.S. economic risk heading into the 2020 election year," said David Bassanese, Sydney-based economist at Betashares.

By the close of Wall Street on Friday, optimism had returned to the market as investors bet that Washington needs a deal and it is in the interest of China, too. All three major US&nbsp;indexes eked out record closing highs.

The Dow inched up while the S&amp;P 500 climbed 0.3 per cent&nbsp;and the Nasdaq Composite added 0.5 per cent. The record closing high by the S&amp;P 500 was the fourth in six sessions.

"It will be the US-China trade talks that will continue to dictate the daily swings in sentiment this week," said Jeffrey Halley, senior analyst at OANDA.

Halley noted the negotiations were "starting to drag on in a disturbingly Brexit-like manner," referring to Britain's divorce deal with the European Union which is still up in the air almost three years after the country voted to leave the bloc.

US&nbsp;officials said a lot of work remained to be done when Trump announced the outlines of an interim deal last month, and Beijing has since pushed back on US&nbsp;demands for big agricultural purchases, among other issues.

Analysts said the outlook for equities was highly dependent on US&nbsp;economic data as a US-China trade agreement would help bolster manufacturing and industrial sectors.

"The Hong Kong protests have seen a knee-jerk rotation out of risk positioning," OANDA's Halley said. "The effects are more likely to be passing than permanent...as long as the trade talks stay on target."

Data on October US&nbsp;industrial production and retail sales, along with the National Federation of Independent Business's monthly small business survey, are scheduled for release this week.

In commodities, benchmark Brent crude fell 57 cents to $61.94 a barrel while West Texas Intermediate (WTI) crude slipped 48 cents to $56.76 a barrel.

Asian shares sank on Monday, the safe-haven yen rose and gold jumped as fresh violence broke out in Hong Kong, while uncertainty still remained over whether the United States and China could end their damaging trade war.

Asian shares sank on Monday, the safe-haven yen rose and gold jumped as fresh violence broke out in Hong Kong, while uncertainty still remained over whether the United States and China could end their damaging trade war. Hong Kong's Hang Seng index led the losses in Asia, down more than 2 per cent, after police fired live rounds at protestors on the eastern side of Hong Kong island. Cable TV and other Hong Kong media reported at least one protester being wounded. Video footage showed a protester lying in a pool of blood. Chinese shares too faltered with the blue-chip CSI300 index down 1.3 per cent. South Korea's KOSPI lost 0.4 per cent. Japan's Nikkei gave up early gains to drift away from a recent 13-month high after data showed the country's core machinery orders fell for a third straight month. Australian shares bucked the downbeat trend, rising 0.55 per cent to a two-week high. That left MSCI's broadest index of Asia-Pacific shares outside Japan down 0.5 per cent. "The China-US trade war and the Hong Kong protest are combining to cast a negative pall on Asian markets today," said James McGlew, analyst at stockbroking firm Argonaut. "Hong Kong protests have been dragging on for a while and the view from the financial world is that it's really starting to bite now. The further this drags on it's certainly going to be very negative." In Asian hours on Monday, E-minis for the S&P500 were 0.25 per cent lower indicating a weak open later in the day. US bond markets are closed on Monday, but currency and equity markets are open. Gold, which rises during times of uncertainty, rebounded from a three-month low touched on Friday to be last up 0.3 per cent at $1,462.11 an ounce. In currencies, the Japanese yen gained on the dollar to 109.01 while the Australian dollar, a liquid gauge for risk, was off slightly at $0.6853. The dollar index was a touch softer at 98.33 while the euro ticked up to $1.1022. Market attention was also on the US-China trade talks. US President Donald Trump told reporters on Saturday that talks with China had moved more slowly than he would have liked, but added that Beijing wanted a deal more than he did. That was a more upbeat tone than just a few days earlier when he had stressed that the White House would not agree to a full rollback of existing tariffs, remarks that hit stock prices and the dollar. "Despite his bluster that 'China wants a trade deal more than I do', markets sense that Trump is likely quite keen to call a truce on what is becoming a serious U.S. economic risk heading into the 2020 election year," said David Bassanese, Sydney-based economist at Betashares. By the close of Wall Street on Friday, optimism had returned to the market as investors bet that Washington needs a deal and it is in the interest of China, too. All three major US indexes eked out record closing highs. The Dow inched up while the S&P 500 climbed 0.3 per cent and the Nasdaq Composite added 0.5 per cent. The record closing high by the S&P 500 was the fourth in six sessions. "It will be the US-China trade talks that will continue to dictate the daily swings in sentiment this week," said Jeffrey Halley, senior analyst at OANDA. Halley noted the negotiations were "starting to drag on in a disturbingly Brexit-like manner," referring to Britain's divorce deal with the European Union which is still up in the air almost three years after the country voted to leave the bloc. US officials said a lot of work remained to be done when Trump announced the outlines of an interim deal last month, and Beijing has since pushed back on US demands for big agricultural purchases, among other issues. Analysts said the outlook for equities was highly dependent on US economic data as a US-China trade agreement would help bolster manufacturing and industrial sectors. "The Hong Kong protests have seen a knee-jerk rotation out of risk positioning," OANDA's Halley said. "The effects are more likely to be passing than permanent...as long as the trade talks stay on target." Data on October US industrial production and retail sales, along with the National Federation of Independent Business's monthly small business survey, are scheduled for release this week. In commodities, benchmark Brent crude fell 57 cents to $61.94 a barrel while West Texas Intermediate (WTI) crude slipped 48 cents to $56.76 a barrel.

Global Markets: Asian shares a sea of red as Hong Kong chaos hits sentiment

China's exports suffered their third month of decline in October, and while the drop was less than expected there were warnings Friday of more pain to come as the <a href="https://www.wionews.com/world/china-us-agree-tariff-rollback-if-phase-one-trade-deal-is-completed-260641">US trade war </a>rumbles on.

While tensions between the world's top two economies are beginning to ease, Beijing is struggling to get the engines of growth firing on all cylinders as demand for its goods around the world tails off.

In the latest sign of weakness, official data showed overseas shipments fell 0.9 per cent on-year last month, though that is much slower than the 3.2 per cent drop seen in September and much better than forecasts.

Economists surveyed by Bloomberg had tipped a 3.9 per cent plunge.

Imports sank for the sixth straight month in October, dropping 6.4 per cent, though that was also an improvement on the previous month and beat estimates.

China's trade surplus with the United States, a key point of anger in the White House, increased to $26.42 billion.

The economic powerhouses have been embroiled in a bruising trade war for more than a year, with punitive tariffs slapped on two-way trade worth hundreds of billions of dollars.

But markets have been buoyed in recent weeks by expectations the row, which has dragged on the global economy, could be easing as China and the US finalise a mini trade deal that is part of a wider agreement.

Hopes for an end to the stand-off were boosted Thursday when China said the two sides have agreed a plan to remove tariffs imposed on goods in stages if the phase one preliminary pact on which they are working is completed.

Ken Cheung Kin Tai, a senior strategist at Mizuho Bank said that the "less worrying trade figures should help suppress fears of weakening fourth-quarter China growth amid the trade war".

China's economic growth slowed to six percent in the third quarter, the weakest rate in 27 years.

However, analysts warned the subdued outlook worldwide will continue to weigh on trade.

"Slowing global growth and the uncertainty surrounding the US-China trade tensions will continue to dampen trade prospects in China and demand for imports," said Tommy Wu of Oxford Economics.

He added that further policy easing and support from the government could be expected to stabilise growth.

"The contraction in both exports and imports eased more than expected last month," said Martin Rasmussen, China economist at Capital Economics.

"But even if the 'phase one' US-China trade deal crosses the finish line, it is unlikely to alleviate the main headwinds facing exporters and outbound shipments look set to remain weak in the coming months."

China's exports suffered their third month of decline in October, and while the drop was less than expected there were warnings Friday of more pain to come as the US trade war rumbles on.

China's exports suffered their third month of decline in October, and while the drop was less than expected there were warnings Friday of more pain to come as the US trade war rumbles on. While tensions between the world's top two economies are beginning to ease, Beijing is struggling to get the engines of growth firing on all cylinders as demand for its goods around the world tails off. In the latest sign of weakness, official data showed overseas shipments fell 0.9 per cent on-year last month, though that is much slower than the 3.2 per cent drop seen in September and much better than forecasts. Economists surveyed by Bloomberg had tipped a 3.9 per cent plunge. Imports sank for the sixth straight month in October, dropping 6.4 per cent, though that was also an improvement on the previous month and beat estimates. China's trade surplus with the United States, a key point of anger in the White House, increased to $26.42 billion. The economic powerhouses have been embroiled in a bruising trade war for more than a year, with punitive tariffs slapped on two-way trade worth hundreds of billions of dollars. But markets have been buoyed in recent weeks by expectations the row, which has dragged on the global economy, could be easing as China and the US finalise a mini trade deal that is part of a wider agreement. Hopes for an end to the stand-off were boosted Thursday when China said the two sides have agreed a plan to remove tariffs imposed on goods in stages if the phase one preliminary pact on which they are working is completed. Ken Cheung Kin Tai, a senior strategist at Mizuho Bank said that the "less worrying trade figures should help suppress fears of weakening fourth-quarter China growth amid the trade war". China's economic growth slowed to six percent in the third quarter, the weakest rate in 27 years. However, analysts warned the subdued outlook worldwide will continue to weigh on trade. "Slowing global growth and the uncertainty surrounding the US-China trade tensions will continue to dampen trade prospects in China and demand for imports," said Tommy Wu of Oxford Economics. He added that further policy easing and support from the government could be expected to stabilise growth. "The contraction in both exports and imports eased more than expected last month," said Martin Rasmussen, China economist at Capital Economics. "But even if the 'phase one' US-China trade deal crosses the finish line, it is unlikely to alleviate the main headwinds facing exporters and outbound shipments look set to remain weak in the coming months."

China export drop beats forecasts in October but more pain tipped

Asian shares napped near multi-month peaks on Thursday while bonds eked out a bounce as reports of delays in sealing a preliminary Sino-US&nbsp;trade deal left investors frustrated at the lack of concrete progress.

In early European trades, the pan-region Euro Stoxx 50 futures&nbsp;were up slightly while those for German DAX were flat. London's FTSE futures&nbsp;rose 0.2 per cent.

MSCI's broadest index of Asia-Pacific shares outside Japan&nbsp;dipped a slight 0.2 per cent, just off a six-month highs hit earlier in the week.

Japan's Nikkei dithered either side of flat in very quiet trade, having touched a 13-month top on Wednesday. South Korean stocks eased 0.15 per cent&nbsp;after hitting their highest since May, while Shanghai blue chips lost 0.08 per cent.

E-Mini futures for the S&amp;P 500 eased 0.1 per cent.

Reuters reported on Wednesday a meeting between US&nbsp;President Donald Trump and Chinese President Xi Jinping to sign an interim trade deal could be <a href="https://www.wionews.com/world/us-china-trade-deal-signing-could-be-delayed-to-december-london-a-possible-venue-report-260422">delayed until December</a> as discussions continue over terms and venue.

Among various suggestions was to sign a deal after a scheduled NATO meeting in early December.

"One could take the view that by not committing to meet the original deadline it gives more time for a somewhat more comprehensive agreement to be thrashed out," said Ray Attrill, head of FX strategy at National Australia Bank.

"But markets have understandably jumped the other way, exhibiting a slight loss of confidence that anything more substantial than an agreement not to further lift tariffs, in return for some increase in US agricultural purchases, can be agreed by way of an initial deal."

Wall Street was underwhelmed by the news and the Dow ended Wednesday all but flat, while the S&amp;P 500&nbsp;gained 0.07 per cent&nbsp;and the Nasdaq&nbsp;dropped 0.29 per cent.

HP Inc&nbsp;rose over 6 per cent&nbsp;after Reuters reported US&nbsp;printer maker Xerox Holdings Corp&nbsp;has made a roughly $33 billion cash-and-stock offer for the computer group.

The pause in the risk rally helped bonds recoup a little of their recent losses. Yields on benchmark US&nbsp;10-year notes&nbsp;fell back to 1.81 per cent&nbsp;from a two-month top of 1.87 per cent.

That, in turn, restrained the dollar, which eased to 108.74 yen&nbsp;from a weekly high of 109.24. The dollar was steady on a basket of currencies at 97.965.

The euro was struggling to sustain any bounce at $1.1061, perilously close to chart support at $1.1060.

Spot gold was little changed at $1,490.38 per ounce&nbsp;and well within recent tight trading ranges.

Oil prices nursed losses after taking a hit from a surprisingly large build in US&nbsp;crude inventories.

US&nbsp;crude&nbsp;was 6 cents lower at $56.29 a barrel, while Brent crude&nbsp;slipped 7 cents to $61.67.

Asian shares napped near multi-month peaks on Thursday while bonds eked out a bounce as reports of delays in sealing a preliminary Sino-US trade deal left investors frustrated at the lack of concrete progress.

Asian shares napped near multi-month peaks on Thursday while bonds eked out a bounce as reports of delays in sealing a preliminary Sino-US trade deal left investors frustrated at the lack of concrete progress. In early European trades, the pan-region Euro Stoxx 50 futures were up slightly while those for German DAX were flat. London's FTSE futures rose 0.2 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan dipped a slight 0.2 per cent, just off a six-month highs hit earlier in the week. Japan's Nikkei dithered either side of flat in very quiet trade, having touched a 13-month top on Wednesday. South Korean stocks eased 0.15 per cent after hitting their highest since May, while Shanghai blue chips lost 0.08 per cent. E-Mini futures for the S&P 500 eased 0.1 per cent. Reuters reported on Wednesday a meeting between US President Donald Trump and Chinese President Xi Jinping to sign an interim trade deal could be delayed until December as discussions continue over terms and venue. Among various suggestions was to sign a deal after a scheduled NATO meeting in early December. "One could take the view that by not committing to meet the original deadline it gives more time for a somewhat more comprehensive agreement to be thrashed out," said Ray Attrill, head of FX strategy at National Australia Bank. "But markets have understandably jumped the other way, exhibiting a slight loss of confidence that anything more substantial than an agreement not to further lift tariffs, in return for some increase in US agricultural purchases, can be agreed by way of an initial deal." Wall Street was underwhelmed by the news and the Dow ended Wednesday all but flat, while the S&P 500 gained 0.07 per cent and the Nasdaq dropped 0.29 per cent. HP Inc rose over 6 per cent after Reuters reported US printer maker Xerox Holdings Corp has made a roughly $33 billion cash-and-stock offer for the computer group. The pause in the risk rally helped bonds recoup a little of their recent losses. Yields on benchmark US 10-year notes fell back to 1.81 per cent from a two-month top of 1.87 per cent. That, in turn, restrained the dollar, which eased to 108.74 yen from a weekly high of 109.24. The dollar was steady on a basket of currencies at 97.965. The euro was struggling to sustain any bounce at $1.1061, perilously close to chart support at $1.1060. Spot gold was little changed at $1,490.38 per ounce and well within recent tight trading ranges. Oil prices nursed losses after taking a hit from a surprisingly large build in US crude inventories. US crude was 6 cents lower at $56.29 a barrel, while Brent crude slipped 7 cents to $61.67.

Asia stocks frustrated as trade doubts resurface

Asian shares surged on Monday, with a broad regional gauge hitting more than 14-week highs, as growing optimism over US-China trade talks and upbeat US&nbsp;job data boosted global investors' appetite for riskier assets.

MSCI's broadest index of Asia-Pacific shares outside Japan jumped 1.08%, touching its highest level since July 24, and on track for its biggest one-day gain since Oct. 11.

Equity markets in Europe were set to follow Asia higher, with pan-region Euro Stoxx 50 futures up 0.53%, German DAX futures 0.49% higher and FTSE futures&nbsp;rising 0.41% in early trading.

In Asia, Hong Kong's Hang Seng rose 1.36%, and Seoul's Kospi added 1.43%. In mainland China, blue chips were up 0.72%, and Australian shares were 0.27% higher.

Markets in Japan were closed for a holiday.

The United States and China both said on Friday that they had made progress in talks aimed at defusing their protracted trade war, and US officials said a deal could be signed this month.

But in a note to clients, analysts at National Australia Bank sounded a note of caution.

"As much as the US-China trade updates continue to point to a Phase 1 deal looking like a certainty, the contentious issues on whether the US&nbsp;will cancel the planned December tariffs and remove some of the current tariffs in line with China's demands remains an unknown and if the issue is not resolved then a deal could easily collapse," they said.

In comments on Friday, White House economic adviser Larry Kudlow said tariffs set to kick in on Dec. 15, which would cover Chinese imports such as laptops, toys and electronics, would remain on the table, and the decision whether to cancel them would be made by US&nbsp;President Donald Trump.

Any lingering uncertainty over the outlook for trade talks was not enough to keep the S&amp;P 500 from gaining 0.97% and the Nasdaq rising 1.13% to fresh record closing highs on Friday.

The Dow Jones Industrial Average&nbsp;rose 1.11%.

On Monday, U.S. S&amp;P 500 e-mini stock futures were up 0.2% at 3,067.8.

US job growth slowed less than expected in October and hiring in the prior two months was stronger than previously estimated, data from the Labor Department showed on Friday.

Those numbers followed a private survey of manufacturers in China that showed better-than-expected factory activity in October.

Rob Carnell, Asia-Pacific chief economist at ING in Singapore, said some market optimism was "probably justified" in the wake of the positive data.

"Everybody had been looking for a much worse number and it didn't materialise, so some bounce from that was entirely plausible and reasonable."

But he added that continued uncertainty over trade talks and less room for monetary easing by global central banks made for a murky outlook.

"It's difficult to see why you wouldn't be at least thinking, there is a 'good profit-taking opportunity right now' and positioning for a slightly worse outcome," he said.

While cash treasuries were not trading due to the Japanese market holiday, US&nbsp;10-year Treasury futures&nbsp;were down 0.11% amid the broadly bullish market mood.

The implied yield on the 10-year Treasury futures contract expiring in December&nbsp;was 1.65%.

Oil prices, which had surged on hopes for a US-China trade deal, pulled back on Monday. Global benchmark Brent crude was off 0.57% at $61.34 per barrel and US&nbsp;West Texas Intermediate crude was 0.55% lower at $55.89.

In the currency market, the dollar was up 0.06% against the yen at 108.23, and the euro was up 0.02% to buy $1.1167.

The dollar index, which tracks the greenback against a basket of six major rivals, was down 0.02% at 97.222.

Those small moves contrasted with a 1.42% jump in the South African rand against the dollar. The currency rallied on relief that Moody's maintained South Africa's investment-grade rating on Friday, though the agency cut its outlook on the rating to "negative".

China's yuan also strengthened, with the positive market tone around trade talks helping it to rise to a 2-1/2 month high against the dollar. It was last up 0.15% at 7.0267 per dollar.

Gold was slightly lower as investors moved into riskier assets. Spot gold was trading at $1,511.52 per ounce, down 0.13%.

Asian shares surged on Monday, with a broad regional gauge hitting more than 14-week highs, as growing optimism over US-China trade talks and upbeat US job data boosted global investors' appetite for riskier assets.

Asian shares surged on Monday, with a broad regional gauge hitting more than 14-week highs, as growing optimism over US-China trade talks and upbeat US job data boosted global investors' appetite for riskier assets. MSCI's broadest index of Asia-Pacific shares outside Japan jumped 1.08%, touching its highest level since July 24, and on track for its biggest one-day gain since Oct. 11. Equity markets in Europe were set to follow Asia higher, with pan-region Euro Stoxx 50 futures up 0.53%, German DAX futures 0.49% higher and FTSE futures rising 0.41% in early trading. In Asia, Hong Kong's Hang Seng rose 1.36%, and Seoul's Kospi added 1.43%. In mainland China, blue chips were up 0.72%, and Australian shares were 0.27% higher. Markets in Japan were closed for a holiday. The United States and China both said on Friday that they had made progress in talks aimed at defusing their protracted trade war, and US officials said a deal could be signed this month. But in a note to clients, analysts at National Australia Bank sounded a note of caution. "As much as the US-China trade updates continue to point to a Phase 1 deal looking like a certainty, the contentious issues on whether the US will cancel the planned December tariffs and remove some of the current tariffs in line with China's demands remains an unknown and if the issue is not resolved then a deal could easily collapse," they said. In comments on Friday, White House economic adviser Larry Kudlow said tariffs set to kick in on Dec. 15, which would cover Chinese imports such as laptops, toys and electronics, would remain on the table, and the decision whether to cancel them would be made by US President Donald Trump. Any lingering uncertainty over the outlook for trade talks was not enough to keep the S&P 500 from gaining 0.97% and the Nasdaq rising 1.13% to fresh record closing highs on Friday. The Dow Jones Industrial Average rose 1.11%. On Monday, U.S. S&P 500 e-mini stock futures were up 0.2% at 3,067.8. US job growth slowed less than expected in October and hiring in the prior two months was stronger than previously estimated, data from the Labor Department showed on Friday. Those numbers followed a private survey of manufacturers in China that showed better-than-expected factory activity in October. Rob Carnell, Asia-Pacific chief economist at ING in Singapore, said some market optimism was "probably justified" in the wake of the positive data. "Everybody had been looking for a much worse number and it didn't materialise, so some bounce from that was entirely plausible and reasonable." But he added that continued uncertainty over trade talks and less room for monetary easing by global central banks made for a murky outlook. "It's difficult to see why you wouldn't be at least thinking, there is a 'good profit-taking opportunity right now' and positioning for a slightly worse outcome," he said. While cash treasuries were not trading due to the Japanese market holiday, US 10-year Treasury futures were down 0.11% amid the broadly bullish market mood. The implied yield on the 10-year Treasury futures contract expiring in December was 1.65%. Oil prices, which had surged on hopes for a US-China trade deal, pulled back on Monday. Global benchmark Brent crude was off 0.57% at $61.34 per barrel and US West Texas Intermediate crude was 0.55% lower at $55.89. In the currency market, the dollar was up 0.06% against the yen at 108.23, and the euro was up 0.02% to buy $1.1167. The dollar index, which tracks the greenback against a basket of six major rivals, was down 0.02% at 97.222. Those small moves contrasted with a 1.42% jump in the South African rand against the dollar. The currency rallied on relief that Moody's maintained South Africa's investment-grade rating on Friday, though the agency cut its outlook on the rating to "negative". China's yuan also strengthened, with the positive market tone around trade talks helping it to rise to a 2-1/2 month high against the dollar. It was last up 0.15% at 7.0267 per dollar. Gold was slightly lower as investors moved into riskier assets. Spot gold was trading at $1,511.52 per ounce, down 0.13%.

Asian shares climb to 14-week highs on hopes US, China getting close to trade deal

Oil&nbsp;prices&nbsp;edged&nbsp;up&nbsp;on Friday after a difficult week but were still headed for&nbsp;losses of about 4 per cent, hit by a combination of&nbsp;rising&nbsp;global supply and uncertain future demand.

US&nbsp;crude&nbsp;rose for the first time in four days, gaining 18 cents, or 0.3 per cent, to $54.36 a barrel by 0339 GMT. The contract was&nbsp;set&nbsp;for a&nbsp;weekly&nbsp;loss&nbsp;of more than 4 per cent.

Brent crude&nbsp;was&nbsp;up&nbsp;5 cents, or 0.1 per cent, at $59.67 a barrel, leaving it on track for a drop of nearly 4 per cent.

Worries over global economic growth, along with&nbsp;oil&nbsp;demand, continue to haunt the market as leaders from the United States and China struggle to end a 16-month dispute that has roiled&nbsp;trade&nbsp;between the world's top two economies.

"Concerns about the <a href="https://www.wionews.com/world/trump-new-location-for-united-states-china-trade-deal-signing-to-be-announced-soon-259106">US-China&nbsp;trade&nbsp;dispute </a>have come home to roost," said Stephen Innes, Asia Pacific market strategist at AxiTrader.

The market received some respite from a run of poor economic data after an unexpected bounce in a private sector survey of Chinese manufacturing activity on Friday, which contrasted with the dour results of an official survey Thursday.

Japanese factory activity, however, sank to more than a three-year low in October, data showed on Friday, in a fresh warning sign for the world's third-largest economy.

US&nbsp;crude inventories&nbsp;rose by 5.7 million barrels in the week to October&nbsp;25, dwarfing analyst expectations for an increase of just 494,000 barrels.

A Reuters survey showed that&nbsp;oil&nbsp;prices&nbsp;are likely to remain under pressure this year and next. The poll of 51 economists and analysts forecast Brent crude would average $64.16 a barrel in 2019 and $62.38 next year.

Meanwhile, US&nbsp;crude production soared nearly 600,000 barrels per day in August to a record of 12.4 million, buoyed by a 30 per cent&nbsp;increase in Gulf of Mexico&nbsp;output, according to government data released on Thursday.

Those numbers came as a Reuters survey found&nbsp;output&nbsp;from Organization of the Petroleum Exporting Countries (OPEC) recovered in October from an eight-year low, with rapid recovery in Saudi Arabian production from attacks on&nbsp;oil&nbsp;plants more than offsetting&nbsp;losses in Ecuador and voluntary curbs under a supply pact.

Oil prices edged up on Friday after a difficult week but were still headed for losses of about 4 per cent, hit by a combination of rising global supply and uncertain future demand.

Oil prices edged up on Friday after a difficult week but were still headed for losses of about 4 per cent, hit by a combination of rising global supply and uncertain future demand. US crude rose for the first time in four days, gaining 18 cents, or 0.3 per cent, to $54.36 a barrel by 0339 GMT. The contract was set for a weekly loss of more than 4 per cent. Brent crude was up 5 cents, or 0.1 per cent, at $59.67 a barrel, leaving it on track for a drop of nearly 4 per cent. Worries over global economic growth, along with oil demand, continue to haunt the market as leaders from the United States and China struggle to end a 16-month dispute that has roiled trade between the world's top two economies. "Concerns about the US-China trade dispute have come home to roost," said Stephen Innes, Asia Pacific market strategist at AxiTrader. The market received some respite from a run of poor economic data after an unexpected bounce in a private sector survey of Chinese manufacturing activity on Friday, which contrasted with the dour results of an official survey Thursday. Japanese factory activity, however, sank to more than a three-year low in October, data showed on Friday, in a fresh warning sign for the world's third-largest economy. US crude inventories rose by 5.7 million barrels in the week to October 25, dwarfing analyst expectations for an increase of just 494,000 barrels. A Reuters survey showed that oil prices are likely to remain under pressure this year and next. The poll of 51 economists and analysts forecast Brent crude would average $64.16 a barrel in 2019 and $62.38 next year. Meanwhile, US crude production soared nearly 600,000 barrels per day in August to a record of 12.4 million, buoyed by a 30 per cent increase in Gulf of Mexico output, according to government data released on Thursday. Those numbers came as a Reuters survey found output from Organization of the Petroleum Exporting Countries (OPEC) recovered in October from an eight-year low, with rapid recovery in Saudi Arabian production from attacks on oil plants more than offsetting losses in Ecuador and voluntary curbs under a supply pact.

Oil prices edge up, but set for big weekly loss on rising output, trade woes

The&nbsp;Bank&nbsp;of&nbsp;Japan&nbsp;held&nbsp;fire&nbsp;on Thursday but suggested it could&nbsp;cut&nbsp;rates in the&nbsp;future, reflecting its fears that global risks could weigh on the country's fragile recovery.

The announcement came just hours after the US <a href="https://www.wionews.com/world/trump-again-attacks-federal-reserve-says-central-bank-derelict-in-its-duties-258005">Federal Reserve</a>&nbsp;cut&nbsp;its benchmark interest&nbsp;rate&nbsp;for the third straight time as it gauges economic risks.

In its so-called "forward guidance"&nbsp;a signal the central&nbsp;bank&nbsp;gives to the market on its&nbsp;future&nbsp;policy decisions&nbsp;the BoJ said it expects rates "to remain at their present or lower levels."

Previously it had not made reference to the possibility of lower levels, saying instead it expected to keep "current ultra-low rates for an extended period of time, at least until the spring of 2020".

Thursday's announcement dropped the reference to that timeframe, hinting a change could come sooner.

The Japanese central&nbsp;bank&nbsp;warned that a pick-up in the global economy is likely to be delayed "mainly due to the intensified <a href="https://www.wionews.com/world/united-states-wants-china-trade-deal-in-same-time-frame-despite-apec-summit-cancellation-258895">US-China trade friction</a> as well as slowdowns" in emerging economies including China.

"Japan's economy is expected to grow temporarily at a somewhat slower pace than its potential" reflecting weak exports and the sales tax hike that came into effect on October 1, it said.

The&nbsp;Bank&nbsp;also revised down its inflation and growth forecasts for the world's third-largest economy.

The central&nbsp;bank&nbsp;said it expected prices to rise 0.7 per cent in the year to March 2020, down from a previous forecast of 1.0 per cent, and well short of its years-long target of two per cent.

It also revised down its forecast for the following year to 1.1 per cent from 1.3 per cent and downgraded its projection for the year to March 2022 from 1.6 per cent to 1.5 per cent.

The BoJ has consistently fallen short of hitting the two per cent target it considers key to turbocharging the stuttering economy, despite a barrage of stimulus and monetary easing packages.&nbsp;

Bank&nbsp;policymakers have argued that prolonged periods of low growth and inflation have created a "deflation mindset" that continues to weigh on the national economy.

In a statement, it said there had been "no further increase in the possibility that the momentum towards achieving the price stability would be lost".

But it warned at the same time that "it was necessary to continue to pay close attention to the possibility".

The central&nbsp;bank&nbsp;also slightly lowered its economic growth forecast, citing "the delay in the timing of a pick-up in the growth pace of overseas economies".

It&nbsp;now&nbsp;projects&nbsp;Japan's economy will grow 0.6 per cent in the year to March, 0.7 per cent for the following year and 1.0 per cent for the year to March 22.

&nbsp;

The Bank of Japan held fire on Thursday but suggested it could cut rates in the future, reflecting its fears that global risks could weigh on the country's fragile recovery.

The Bank of Japan held fire on Thursday but suggested it could cut rates in the future, reflecting its fears that global risks could weigh on the country's fragile recovery. The announcement came just hours after the US Federal Reserve cut its benchmark interest rate for the third straight time as it gauges economic risks. In its so-called "forward guidance" a signal the central bank gives to the market on its future policy decisions the BoJ said it expects rates "to remain at their present or lower levels." Previously it had not made reference to the possibility of lower levels, saying instead it expected to keep "current ultra-low rates for an extended period of time, at least until the spring of 2020". Thursday's announcement dropped the reference to that timeframe, hinting a change could come sooner. The Japanese central bank warned that a pick-up in the global economy is likely to be delayed "mainly due to the intensified US-China trade friction as well as slowdowns" in emerging economies including China. "Japan's economy is expected to grow temporarily at a somewhat slower pace than its potential" reflecting weak exports and the sales tax hike that came into effect on October 1, it said. The Bank also revised down its inflation and growth forecasts for the world's third-largest economy. The central bank said it expected prices to rise 0.7 per cent in the year to March 2020, down from a previous forecast of 1.0 per cent, and well short of its years-long target of two per cent. It also revised down its forecast for the following year to 1.1 per cent from 1.3 per cent and downgraded its projection for the year to March 2022 from 1.6 per cent to 1.5 per cent. The BoJ has consistently fallen short of hitting the two per cent target it considers key to turbocharging the stuttering economy, despite a barrage of stimulus and monetary easing packages. Bank policymakers have argued that prolonged periods of low growth and inflation have created a "deflation mindset" that continues to weigh on the national economy. In a statement, it said there had been "no further increase in the possibility that the momentum towards achieving the price stability would be lost". But it warned at the same time that "it was necessary to continue to pay close attention to the possibility". The central bank also slightly lowered its economic growth forecast, citing "the delay in the timing of a pick-up in the growth pace of overseas economies". It now projects Japan's economy will grow 0.6 per cent in the year to March, 0.7 per cent for the following year and 1.0 per cent for the year to March 22.

Bank of Japan suggests future rate cut, but holds fire for now