China gains, auto sector promise Asian stocks, but feeling fragile by Reuters

© Reuters. Pedestrians are reflected on an electronic board showing stock prices outside a brokerage in Tokyo

By Andrew Galbraith

SHANGHAI (Reuters) – Asian stocks rose on Tuesday, lifted gains in China, and then car companies climbed on merger news, but Big uncertainty about trade and economic growth, the investor's enthusiasm kept in check.

European stock markets are expected to open higher. In early European trade, the pan-region increased by 0.39% to 3.365, German increased by 0.39% to 1[ads1]2.112, futures increased by 0.5% to 7.299.5, and France rose 0.41% to 5.391.

MSCI's widest Asia-Pacific stock index outside Japan rose 0.38%, and the US rose 0.22% to 2.837.25, and points to gains when US markets resume on Tuesday after a holiday.

Despite today's gains, Joanne Goh, Asia's stock strategist at DBS in Singapore, said a broad market feeling remains uncertain before a possible meeting between the Chinese and US presidents at the G20 summit next month.

"There is still a lack of direction in the markets with regard to all the different asset classes," she said.

"You actually see that Chinese bond yields are picking up, but that should not be the case because we expect stimulus and bond yields to start getting away … there is a lot of uncertainty in the markets right now." [19659004] Chinese blue chips climbed 0.61% a day after data showed The Chinese industry's profits declined in April, which could lead to more government stimulus to support the slower economy.

A planned increase in the weight of Chinese A shares in the MSCI indices after the market near Tuesday also increased stocks. rose 0.37%, while Australian shares gained 0.45%. Japan's stock market index finished 0.37% higher.

In China's debt markets, 10-year government bond futures for September delivery, the most traded contract, rose 0.34% on Tuesday, after falling as much as 0.71% the day before, following China's takeover of a troubled bank were worries about major financial risks.

"With economic indicators mixed and commercial war risk lingering, bias is still slanting towards loose monetary policy to cushion growth. We believe that the increase in the long term (Chinese) Govvie … dividends is probably not guaranteed," said DBS analysts in A note

Market gains in Asia followed a relatively light session in Europe on Monday, with financial markets in the UK and the US closed for holidays. [19659004] European auto stocks had rallied after Italian-American automaker Fiat Chrysler confirmed it had done a "transformative merger" proposal for French peer Renault (PA 🙂 in a deal that would create the world's third largest automaker, the industry race split in Asia with Mitsubishi Motors Corp. in Japan, by 5.95 percent, and Nissan Motor Co increased 2.31%.

Shares in Hong Kong listed Geely Automobile Holdings Ltd jumped 5.47% Preliminary results from EU elections also bowed markets to the Fa the Greens held a firm hold on power in elections to the European Parliament. Pan-European has added 0.2%.

"Although Euroseptic and anti-establishment parties did not win as many places as expected, their influence has increased significantly. This may have implications for the political colors of key EU positions," said Rodrigo Catril, senior vice president of National Australia Bank .

"The parliamentary composition will also have implications for the priority agenda for future EU reform, especially with regard to things like immigration, tax expenditure and fiscal union," he added, noting a downturn in bond yields pointing to continued risk aversion.

The yield on benchmark 10-year German Bunds fell to -0.147% on Monday, the lowest since September 2016.

On Tuesday, US dividends were also lower. Benchmark gave 2.3097%. The two-year return affected 2.1724%.

Trading issues remain high on the investor's list of concerns. US President Donald Trump said Monday that Washington was not ready to sign a deal with Beijing, but he expected one in the future, while pushing Japanese Prime Minister Shinzo Abe to level a trade imbalance with the United States.

The dollar was flat against the yen at 109.50 and fell 0.13% against the euro, with the common currency $ 1.11182.

Whoever tracks the greenback against a basket of six major rivals was 0.17% higher at 97.782.

In commodity markets, oil prices increased after rising more than 1% on Monday on tensions in the Middle East and OPEC-led supply cuts, as well as continuing Russian supply disruptions following a pollution problem discovered last month. 19659004] 0.29% higher at $ 70.31 per barrel, previously dipped below the $ 70 mark, and US West Texas Intermediate crude added 1.16% to $ 59.31 per barrel.

was down 0.12% at $ 1,283.30 per ounce.

which on Monday affected $ 8,939.18, the highest of more than a year, was down 0.55% at $ 8,722.61. Cryptocurrency peaked $ 8,000 for the first time since July 2018 May 13.

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