Asian stocks steady after decline, oil jumps on Saudi comments By Reuters

By Andrew Galbraith

SHANGHAI (Reuters) – Asian stocks stood on Monday when investors caught their breath after a week of escalating US-China trade tensions, with emotions getting better after the US said it would raise tariffs in North America.

MSCI's widest index of Asia-Pacific shares outside Japan increased 0.6%, reflecting modest gains in markets across the region after the broad index was at its lowest since January 24 on Friday, down 3%. for the week.

Australian stocks supported the tighter mood of the market, jumped 1[ads1].7% after the Mid-Right Liberal National Coalition pulled off a shocking woman in federal elections, and beat the left Labor Party.

The election results also appear to lift markets in India. India's NSE Stock Futures listed in Singapore increased by 2.4% and the rupee boosted by baseline statistics showed Indian Prime Minister Narendra Modi is likely to return to power with even greater majority in parliament.

Stocks in South Korea's trading-sensitive markets and Taiwan also rose. Taiwan's SE-weighted index increased by 0.3% and Seoul rose 0.6%.

U.S .. was also higher and increased 0.3% after losses on Wall Street on Friday.

"We have had so unstable a few days when it comes to statements and interpretations of what is happening to this potential commercial war. And I think the news bits we had over the weekend suggest that Trump's approach to international tariffs will be softer, says Jim McCafferty, Head of Equity Research, Asia outside Japan at Nomura.

On Friday, the United States announced that it would remove tariffs on Canadian steel and aluminum, and urged Canada's Foreign Minister to lift the rapid ratification of a new North American trade agreement. 19659004] "I think people might assume that a similar strategy might be used for Asia," McCafferty said, citing

Japan's stock market index rose 0.3% after data showed that growth in the world's third-largest economy unexpectedly accelerated in the first quarter.

Courageous gains on Monday even came as the financial markets kept abreast of the intensifying Chinese-ame trade war Rican trading, and Trump administration last week let Huawei Technologies Co Ltd become a trading blacklist.

The implications of this feature were evident as Alphabet (NASDAQ 🙂 Inc's Google Suspended Business with Huawei that requires hardware, software, and technical services to be transferred, except for those available for public access through open source licensing.

Google's suspension of business with Huawei "signals that even though trade negotiations are characterized as stopping, when we are important in China, it says there is no point that US dealers come to Beijing under today's circumstances as they did on Friday, so see the chance of a G20 deal far more distant, "said Greg McKenna, strategist at McKenna Macro, in a note to clients.

Noted the Fortress War, continued uncertainty over Brexit and growing tensions between the US and Iran, McKenna said investors are currently "headline trading".

"It is too early to see the financial consequences of the struggle escalating. And such beliefs can be suspended at that time," he said.

OLJE JUMPER

Rising tensions in the Middle East, which have supported the oil price, sprang up another notch this weekend when US President Donald Trump issued new threats and doubted that a conflict with Iran would be the "official end" of it country.

But there were comments from Saudi Arabia's Minister of Energy that had the most immediate effect on Monday's commodity prices.

Saudi Energy Minister Khalid al-Falih said there was consensus among members of the organization of the oil company to maintain production cuts to gently reduce inventories.

Both and 1.4% skipped the minister's comments, with the West Texas Intermediate retrieving $ 63.66 per barrel and Brent crude at $ 73.27 per barrel.

In foreign exchange markets, China recovered after being weakest against the dollar since November on Friday. It was the last trade at 6.9351 per dollar.

On onshore trading on Friday, the yuan had weakened beyond the psychologically important 6.9 per dollar level eventually to its softest for 19 weeks. But sources told Reuters that the country's central bank is expected to use currency exchange and monetary policy tools to halt the weaker past the 7-per-dollar level in the short term.

People's Bank of China said on Sunday that it would maintain basic stability in the yuan exchange rate within a "reasonable and balanced range".

It strengthened to 6,9081 per dollar on Monday.

The dollar rose 0.12% against the yen to 110.20, while the euro was barely changed at $ 1.1555. The one who tracks the greenback against a basket of six large rivals had a hair width of 98.018.

The benchmark interest rate rose to 2.4015% compared to a US mark-up 2,393% on Friday, while the two-year return affected 2,2146%, up from Friday's US close to 2,202%.

Gold trimmed previous gains on the modest revival of risk willingness, led to $ 1,276.91 per ounce.