Trinity Investments Limited – Asian Markets Positive – US China Tensions Easing
Asian stocks built on their January rally as investors demonstrated continued confidence that trade tensions ultimately will subside and policy makers will refrain from growth-damaging monetary tightening.
Asian shares opened higher after a report indicated China had offered a path to eliminate its trade imbalance with the U.S. by ramping up purchases of goods made in America. Separate reporting showed that on intellectual property, discussions amounted more to an airing of grievances than constructive negotiations, according to participants and others briefed on the talks.
Data on Monday confirmed China's economy expanded at the slowest pace since the global financial crisis, in line with many expectations, though December figures for industrial production and retail sales were buoyant. Still, South Korea's early trade data for January offered grimmer news on the global economy as exports fell by the most in more than two years.
Meantime, the pound was steady. Theresa May briefed her Cabinet on Sunday evening that there was little prospect of cross-party Brexit talks yielding a workable alternative plan to the one that Parliament overwhelmingly rejected last week. Instead she is seeking changes to the Irish backstop section of the deal she's negotiated with the European Union.
These are the main moves in markets:
The MSCI Asia Pacific Index gained 0.4 percent as of 10:03 a.m. Hong Kong time. Japan's Topix index advanced 0.7 percent. Hang Seng rose 0.3 percent. Australia's S&P/ASX 200 Index advanced 0.3 percent. Futures on the S&P 500 dropped 0.2 percent. The S&P 500 Index gained 1.3 percent Friday, to the highest since Dec. 6.
The yen gained 0.2 percent to 109.54 per dollar. The offshore yuan held at 6.7991 per dollar. The euro bought $1.1377, up 0.1 percent. The pound traded 0.1 percent lower at $1.2865.
The yield on 10-year Treasuries rose three basis points to 2.78 percent Friday. Australia's 10-year bond yielded 2.32 percent.
The Bloomberg Commodity Index gained 1.2 percent Friday to a five-week high. West Texas Intermediate crude slipped 0.5 percent to $53.56 a barrel.
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