Asian equities struggle to reach their highest level in eight months

SYDNEY (Reuters) – Asian stocks fell on Thursday after peaking at eight months as investors pulled money off the table amid renewed concerns over ongoing trade talks between the two countries. and their impact on global growth prospects.

Spreadbetters highlighted the moderate start of European equities with futures for the London FTSE down 0.3%, while those of Germans Dax and Eurostoxx fell by 0.1% each. E-minis for the S & P 500 were a little weaker.

The broadest MSCI share of Asia-Pacific stocks outside Japan retreated 0.4% after five straight days of gains reaching its highest level since the end of August. Australia and New Zealand were the main causes of losses, while the markets of Hong Kong, the Philippines and India were also in red.

Chinese equities rallied with the prime index, up 0.6%, while the Nikkei, Japan, was close to a peak in one month.

Analysts pointed to investor fatigue and the lack of news on Sino-US trade talks at Thursday's sale, as this week's disappointing US economic data tends to weigh heavily on investor sentiment. .

"It would take a significant step forward, such as a total elimination of tariffs implemented last year, to give a new impetus to the markets," said Tai Hui, chief markets strategist for China. Asia-Pacific, JP Morgan Asset Management.

The sentiment of risk was otherwise sustained this week by signs of progress in Sino-US trade talks. White House economic advisor Larry Kudlow said on Wednesday that the two sides were aiming to overcome differences in negotiations, which could last more than three days this week.

Investors want to see whether the ongoing negotiations will result in an earlier meeting between US President Donald Trump and his Chinese counterpart Xi Jinping for the signing of an agreement.

"An important question would also be whether an agreement would be enough to revive the business climate and the global business cycle," JPMorgan's Tai added.

"We think that would help a little, but virtually every investor we have talked to in Asia over the last six months believes that friction will continue to exist from time to time between the two parties."

Bloomberg said Thursday that the United States wants China to meet its 2025 target to meet its trade commitments.

Under the plan, China would commit to buying more commodities in the United States, including soybean and energy products, and allow US companies operating in China to acquire full foreign ownership as collateral. restrictive.

The traders were also balancing their positions ahead of the US jobs data expected on Friday after earlier disappointments this week. Wednesday's figures showed that services-sector activity hit its lowest level in more than 19 months in March, while the private sector wage bill had increased less than expected, suggesting a slowdown in the labor market. the world's largest economy.

On the foreign exchange market, movements were modest after stronger overnight fluctuations when all major currencies gained against the yen refuge.

Thursday, the greenback fell slightly against a basket of currencies to 97.06 although it is slightly closer to the yen.

The euro was up $ 1.126, while the pound sterling rose to $ 1.3185 after British Prime Minister Theresa May had talks with the Labor opposition party in an attempt to get out Brexit stalemate, likely to result in a softer start agreement with the EU.

The Lower House of the UK Parliament also on Wednesday narrowly passed a law requiring May to request a postponement of Brexit to prevent the risk of leaving without agreement on April 12.

In commodities markets, spot gold reached $ 1,292.96 an ounce.

US crude fell 9 cents to $ 62.37, while Brent rose 4 cents to $ 69.27.[O/R]