TOKYO (Reuters) – Asian equities rose on Monday as Chinese equities reversed early losses, backed by hopes of progress in resolving the US-China trade war, while sterling slipped after the British parliament delayed a crucial vote on a Brexit -drawal agreement.
FILE PHOTO: A visitor wearing a mask is seen behind a Japan Stock Exchange (JPX) logo on the Tokyo Stock Exchange in Tokyo on December 15, 2014. REUTERS / Yuya Shino / File Photo
MSCI's Asia-Pacific Broadest Index Shares outside Japan .MIAPJ0000PUS rose 0.25%. Chinese stock .CSI300 advanced 0.31%, while Japan's Nikkei .N225 rose 0.30%.
Pan region Euro Stoxx 50 futures STXEc1 increased by 0.22%, German DAX futures FDXc1 0.19% and FTSE futures FFIc1 only 0.04%.
The pound slipped from a five-month high against the dollar and euro after the British parliament forced Prime Minister Boris Johnson to apply for a delay to an October 31 deadline for Britain's departure from the bloc.
The votes on an extension gave a blow to the optimism that a deal agreed last week would secure Brexit with little financial disruption.
Oil futures fell as long-standing concerns about economic growth and excess supply of crude oil prompted speculators to trim their long positions.
It looks like the Chinese stock market took some encouragement from comments from Chinese Deputy Prime Minister Liu He on Friday that Beijing will work with the United States to meet each other's concerns and that stopping the trade war would be good for both pages and the world.
Also on Friday, US President Donald Trump said he believes a US-China trade agreement will be signed when the Asia-Pacific Economic Cooperation meetings take place in Chile on 16-17. November.
Stocks in Hong Kong also received a boost after Chinese stock exchanges revised rules to allow mainland investors to buy first shares of the Hong Kong listed class.
"We have had some positive news from Liu, and allowing Chinese investors direct access to double-listed Hong Kong shares is another positive," said Sean Darby, global equity strategist at Jefferies in Hong Kong.
“There's still a lot of money on the sidelines, and there's only eight or nine weeks left to spend the money to work before we end the year. I expect the markets to continue to bid. "
U.S. stock futures ESc1 rose 0.22% in Asia as investors supported high-profile earnings this week from Microsoft Corp ( MSFT.O ), Amazon.com ( AMZN.O ) and others.
The S&P 500 fell 0.4% on Friday, in part due to concerns about the fallout from the US and China trade wars.
The 15-month battle over China's trade and industrial policy has shown few signs ending despite several rounds of talks.
The financial markets have been targeted during this period as a steady rise in tariff-for-tat tariffs has slowed global trade and increased the risk of recession for some countries.
Japan's exports fell during September for the 10th straight month, while South Korea's exports dived 19.5% for the first 20 days of October, data shows Monday.
Hong Kong shares .HSI deleted early losses to rise 0.26%.
Chinese bourses on Friday revised rules allowing Hong Kong-listed double-class shares to be included in the Stock Connect scheme for the first time, increasing the shares of popular technology companies Xiaomi Corp ( 1810.HK ) and Meituan Dianping ( 3690.HK ) on Monday.
The rule change, which comes into force on October 28, can be positive for Hong Kong stocks, which have been beaten during months of frequent violent protests against Chinese rule in the former British colony.
Graphics: FTSE vs US and European bourses, here
Pound GBP = D3 fell 0.6% to $ 1.2907 and was down 0.4% to 86.47 pence per euro.
The British government insists that Brexit will take place on October 31, but uncertainty about how British lawmakers will respond may weigh on the mood for sterling.
The head of the House of Commons says the government plans to put the new Brexit agreement into debate and vote on Monday, but it is unclear whether the speaker in the House will allow this to happen.
Elsewhere in the foreign exchange markets, the dollar rose 0.1% higher to $ 1.1158 per euro EUR = EBS rose slightly to 108.53 yen JPY = EBS.
U.S .. crude oil CLc1 fell 0.22% to $ 53.66 barrel. Burnt crude oil LCOc1 fell 0.27% to $ 59.26 per barrel.
Money managers cut their net long US crude futures and option positions in the week to October 15, said the U.S. Commodity Futures Trading Commission (CFTC) on Friday.
Long-standing efforts for US crude have fallen sharply in the past two weeks after a plethora of weak economic figures around the world raised concerns about global energy needs.
Tax prices fell in Asia. The return on the benchmark index 10-year Treasuries US10YT = RR increased to 1.7607%.
Gold XAU =, often considered a safe haven haven, was little changed to $ 1,490.60 per ounce.
Editing by Lincoln Feast & Shri Navaratnam