© Reuters PHOTO PHOTO: A man wearing a face mask after the outbreak of coronavirus (COVID-19) walks in front of a stock quote board outside a Tokyo brokerage
By Tom Westbrook and Lawrence Delevingne
SINGAPORE / BOSTON (Reuters) – Asian stock markets rose on Tuesday as another round of Sino-US spins appeared to have failed to trade as it hopes for US stimulus to lend support to oil. and commodity currencies.
The broader MSCI Asia-Pacific Index of shares outside Japan () extended 1%. Japan’s Nikkei () returned from a break with a 1.7% profit led by healthcare and industrial stocks and Hang Seng () fell 2.2%.
Australian and New Zealand dollar risk-takers each raised about 0.3%, though they sit quietly below the last peaks of the moment as some fears rushed into their rise. [AUD/]
Investors are awaiting a meeting between senior US and Chinese trade officials on Saturday to review the first six months of the Phase 1 trade deal.
With China lagging behind in energy and farm commodity purchases from the United States, it may prove markets assuming that the trade relationship is isolated from the breakdown of diplomatic ties between the two countries.
On Tuesday, however, there was a significant relief that China’s sanctions on 11 U.S. citizens – a response to U.S. sanctions on Chinese individuals over Beijing’s crackdown on Hong Kong – seemed to close the final round of tit-for-tat moves.
“It has left the White House intact,” said Vishnu Varathan, head of economics at Mizuho Bank in Singapore.
“It provides a relief that China is still prioritizing dialogue (trade agreements),” he said. “It just means you are not rocking the boat to the point of encapsulation, which is low grass today.”
The safe shelters were under gentle pressure across the board. gold
TW DATA AND DISTRIBUTIONS
Overnight Wall Street found support after Trump signed executive orders to partially restore unemployment benefits after talks between the White House and senior Democrats on fresh stimulus broke down last week.
The Dow () rose 1% and the S&P 500 () framed ahead, while the Nasdaq () sold slightly after investors cut some technology holdings in favor of value stocks.
The S&P 500 is now down less than 1% below a record high in February, while in Asia the former Japan MSCI index is within 2% of an all-January high.
Movements have pushed estimates in Asia to high levels, about 20% above the post-financial crisis averages. But Jim McCafferty of Nomura in Hong Kong said the high levels are justified by a major shift in investor preferences.
“The composition of stock market indices across the region has changed dramatically,” he said. “Oil, telcos and banks once prevailed … now it’s the internet and technology.”
The future of the S&P 500 () rose 0.3% and oil traded strongly in the hope that a US stimulus deal could still be hit and demand growth forecast in Asia. [O/R]
Future gross futures () rose 0.4% to $ 45.16 a barrel and US Gross () rose 0.6% to $ 42.18.
In addition to and, other major currencies gained very marginal dollar gains as the vessel sank lower.
Euro () last bought 1.1746 dollars and yen
Chinese credit figures are due this week, while British labor data and a study of German sentiment that at 0830 GMT and 0900 GMT respectively will give the final reading on Europe ‘s recovery.
Investors expect British unemployment to reach 4.2% in June and German economic sentiment to remain broadly stable.