By Andrew Galbraith
SHANGHAI (Reuters) – Stocks in Asia claimed losses on early Friday, performed by strong gains in China as a sign of progress in Trade negotiations with the United States compensated for worries about a worsening global economic perspective.
The MSCI's widest Asia-Pacific stock index outside Japan was 0.3 percent higher in the middle of the afternoon, having spent the day dipping in and out of negative territory.
Spreadbetter CMC Markets expects uneven performance in Europe, with London's busy 0.1
Chinese stocks rallied in the afternoon after a preliminary start as optimism over trade negotiations reasserted itself, pushing the blue-chip index 2.2 percent higher. In the week, 5.4 percent was achieved, the strongest week since November 2015.
China shares had failed earlier on investor's concerns about lowering domestic growth and indications that Chinese governments would use a benchmark lending rate only as a last resort to boost the economy.
Growth in China's new housing prices fell to a nine-month low in January, as wider economic weakness is increasingly weighing the real estate industry and consumer confidence.
Japan ended 0.2 percent lower after data showed the core Consumer price inflation rose slightly in January, but was far from the central bank's 2 percent target, and emphasized the vulnerability in the country's economic recovery.
Australian shares achieved 0.5 percent and Seoul Kospi reversed previous losses to 0.1 percent.
A combination of trade negotiations and the Federal Reserve caution about further interest rate hikes has supported more risky assets, including stocks, in recent sessions, says Rob Carnell, CFO and research director, Asia-Pacific at ING.
But with one more dovish Fed and one kind of trade deal already priced in, the further development of the trade "has not really had any impact on the markets they would have done in a week or a couple of weeks or months ago," he said. .
Nevertheless, investors continue to follow high-level talks between US and Chinese trade dealers in Washington, with just over a week left before a US deadline for a deal expires, triggering higher tariffs.
On Wednesday, Reuters reported that the two sides drafted languages for six memoranda of understanding on proposed Chinese reforms, progress that had helped lift the investor's feelings.
Chinese Vice President Liu He will meet US President Donald Trump at the White House on Friday, the White House said.
During the trade discussions, new data from the US on Thursday highlighted that the economic outlook is also increasing.
On Thursday, the US Department of Commerce stated that domestic orders for non-eligible non-aircraft capital goods, a closely monitored proxy for business spending plans, fell 0.7 percent.
Furthermore, the US mid-Atlantic factory sector fell into contraction territory in February for the first time since May 2016, showed data from the Philadelphia Federal Reserve.
"While global production is weak, the service business looks more positive. But it is difficult to see production and services that diverge for a long time," ANZ analysts say in a morning report.
"There are strong multiplier effects from production that cause downside risk for the service sector, especially in Europe. And trade uncertainty, which is imminent in the industrial sector, must be resolved. "
The benchmark benchmark rate dropped to 2.684 percent on Friday, compared to a US close-up 2.688 percent on Thursday as a bump from investor optimism on trade negotiations progressed.
The two-year return, seen as a measure of expectations on the higher Fed fund price, was 2,5204 percent off a US close to 2,529 percent.
The Australian dollar recovered after tumbling more than 1 percent on Thursday on a report by Reuters that China's northern port in Dalian has imposed an indeterminate ban on the import of Australian coal.
On Friday, the Reserve Bank of Australia Governor Philip Lowe was cautious about seeing restrictions directed at Australia, and Prime Minister Scott Morrison said the ban did not point to the souring of ties
Separate comments from Lowe that an interest rate increase may be appropriate next year also help to increase the dollar.
It was up P to 0.2 percent at $ 0.71025.
The US dollar rose to the yen at 110.76, while the euro gained less than 0.1 percent to buy $ 1.11342.
Whoever tracks the greenback against a basket of six major rivals was steady at 96,611.
turned from small declines to rise 0.1 percent to $ 57.01 per barrel. was nearly unchanged at $ 67.09.
Gold recovered after falling more than 1 percent in Thursday, trading at 0.2 percent at $ 1,325.16 per ounce.
Graphic – China's blue-chip CSI300 index: https://tmsnrt.rs/2BXGLRJ