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Home / Business / Asian stocks cross up, oil rising among US-Iran tensions by Reuters

Asian stocks cross up, oil rising among US-Iran tensions by Reuters



© Reuters. A passerby walks past a stock card board outside a brokerage in Tokyo

By Hideyuki Sano and Tomo Uetake

TOKYO (Reuters) – Asian stocks set themselves up on Monday when investors shamed their hopes for signs of thawing in Chinese-US trade talks , while the oil price boosted increased tension between the US and Iran.

MSCI's widest index of Asia-Pacific stocks outside of Japan increased by 0.2% and swam not far from Thursday's six-week high, while Japan's average rose 0.3%.

Chinese stocks were little changed, with the benchmark index up 0.1

% and blue-chip CSI 300 flat, while Hong Kong increased 0.1%.

The Wall Street shares were closed a little lower on Friday after releasing a record high thanks to signals from the Federal Reserve last week that it could cut interest rates soon to strengthen the US economy from long-standing trade conflicts. ()

Investors are eagerly awaiting an expected meeting between Presidents Donald Trump and Xi Jinping later in the week for signs of a de-escalation in a trade crisis that destroys the global economy and provides confidence in business. The leaders meet on the sidelines of the G20 summit in Japan.

China and the US should be willing to compromise on trade negotiations and not just insist on what each side wants, said Deputy Minister of Commerce Wang Shouwen on Monday.

U.S .. Vice President Mike Pence decided on Friday to cancel a planned China speech, which also increased optimism in front of trade negotiations. Pence had upset China with a fierce speech in October where he issued a large number of state monitoring complaints to human rights violations.

"Event-driven players buy back shares that the US and China at least appear to talk to each other," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley (NYSE 🙂 Securities (MUMSS).

Nevertheless, most analysts doubt that the two sides will come to some meaningful deal as the tensions have widened over the tariffs, especially after Washington put Huawei, the world's largest telecom provider, on a blacklist that effectively bans US firms from doing business with the company

The US Commerce Department said on Friday it was adding more Chinese companies and a state-owned institute involved in super computing with military applications to its national security "unit list" that prevented them from buying US parts and components without Government approval.

In China, the Global Times newspaper FedEx Corp (NYSE 🙂 probably said to be added to Beijing's up low-value activities list.

"Few investors would expect a dramatic advance when talking about unit lists, just days before a probable summit," said MUMSS Fujito, adding that markets may be disappointed after the summit.

Oil prices climbed as tensions remain high between Tehran and Washington after Iran shot down an unmanned US surveillance drunk, with US Secretary of State Mike Pompeo saying "significant" sanctions against Tehran will be announced.

futures rose 0.3% to $ 65.39 a barrel, near Friday's three weeks high of $ 65.76, while futures were up 0.6% at $ 57.76, also close to Friday's three weeks high.

Also potentially a factor in the equation, Arab politicians and commentators met Trumps economic outlook of $ 50 billion in the Middle East, with a mixture of excitement and expansion, although some in the Gulf requested a chance to be given.

The combination of increased geopolitical concerns and probable Americans Japanese interest rate cuts encouraged investors to seek the security of gold.

The precious metals stood at $ 1,405.41 per ounce not far from Friday's six-year high at $ 1,410.78. [19659004] In the foreign exchange market, the euro rose to a three-month high of $ 1.18686 against the dollar on Monday, as bearish bets on the dollar were solid on the prospects of a long-term rate cut by the Federal Reserve.

The dollar raised 107.38 yen, having gone as low as 107,045 on Friday, the lowest level since its flash crash on January 3.

Other notable movers include Australian dollars. It boosted 0.4% to $ 0.6954 to send a fifth straight increase of gains that the US counterpart was undermined by aggressive Fed price cut bets, which offset some bearishness from the likelihood of political easing at home.

The Turkish lira strengthened 0.7% to 5.775 per dollar after Turkey's main opposition claimed a decisive victory on Sunday in Istanbul's re-run election, which is about one of the biggest battles of President Tayyip Erdogan.

Other places jumped overnight to $ 11 247.62, the highest level since March 2018. It was last listed at $ 10,626.56.


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