Asian share markets edged ahead on Tuesday amid cheery chatter about the chance of a Sino-U.S. trade deal, while investors were sanguine yet another vote on Brexit would still avert a hard exit.
Asian share markets edged ahead on Tuesday amid cheery chatter about the chance of a Sino-U.S. trade deal, while investors were sanguine yet another vote on Brexit would still avert a hard exit. A holiday in Tokyo kept turnover light and MSCI’s broadest index of Asia-Pacific shares outside Japan added a slight 0.13%.
Futures for Japan’s Nikkei were trading flat at 22,700, compared to Monday’s index close at 22,548. South Korean stocks rose 0.4%, while E-Mini futures for the S&P 500 were little changed.
U.S. President Donald Trump sounded upbeat on a China deal on Monday, while White House adviser Larry Kudlow said tariffs on Chinese goods scheduled for December could be withdrawn if talks go well.
Trade-sensitive technology stocks rose 1.1%, pulling the S&P 500 up 0.69% and near to a record closing high. The Dow gained 0.21%, while the Nasdaq rose 0.91%.
The better mood saw safe-haven bonds extend their recent pullback, with 10-year Treasury yields at a five-week peak of 1.80%.
In foreign exchange markets, the dollar found support against the yen at 108.60 while staying steady on a basket of currencies to 97.307.
The euro paused after its recent run higher and was last trading quietly at $1.1151.
Sterling held firm at $1.2972 after Prime Minister Boris Johnson failed to get a vote on his Brexit deal and will try again on Tuesday to get the first stage of a withdrawal bill through Parliament.
“If the House of Commons vote in favour of the deal, GBP/USD could rally towards $1.3500 over the medium term. The UK would then enter a transition period that lasts until 31 December 2020,” said Kim Mundy, a currency strategist at CBA.
“If the Commons rejects the deal, GBP/USD will likely stabilise around $1.2800, because the risk of a hard Brexit will remain low,” he added. “Early UK general elections would be the next most logical way forward.”
In commodity markets, spot gold was idling at $1,483.70 per ounce.
Oil prices were near flat as the market fretted about the health of the global economy and the future for energy demand.
Brent crude futures inched up 7 cents to $59.03, while U.S. crude added 9 cents to $53.40 a barrel.