Asian stocks grow thanks to trade relief between the United States and China

By Shinichi Saoshiro

TOKYO (Reuters) – Asian stocks advanced on Friday as a report on the state of US-China trade talks had given rise to hope for an agreement on their tariff dispute and reinforced the feeling of risk.

The Wall Street Journal reported Thursday that US Treasury Secretary Steven Mnuchin discussed the removal of some or all tariffs on imports from China and suggested lowering tariffs during trade talks scheduled for January 30.

US stocks rallied after the report, but lost some of their gains after a Finance Ministry spokesman told CNBC that Mnuchin made no such recommendation. WSJ also reported that US Trade Representative Robert Lighthizer had resisted Mnuchin's idea. For the day, the three major US indices rose, led by an increase in industrial stocks. [.N]

Even the slightest smell of progress in the Sino-US trade war that lasted several months helped to reinforce the feeling of risk. The largest MSCI index of Asia-Pacific equities outside Japan <.MIAPJ0000PUS> added 0.7 percent. The index gained 1.4% this week.

The Shanghai Composite Index <.SSEC> was up 0.8 percent.

Australian stocks <.AXJO> KOSPI of South Korea increased by 0.5% <.KS11> while the Nikkei of Japan <.N225> has gained more than 1% at a high of one month.

"As in 2018, the US-China trade remains a key theme of the market in 2019. A slight difference is that there are signs that both sides are looking for a solution," said Soichiro Monji, senior economist at Daiwa SB. Investments in Tokyo.

"China no longer seems to have many options, while the United States would also like to avoid a protracted conflict given the negative consequences on their markets and economies," Monji said.

Chinese Vice Premier Liu He will travel to the United States on Jan. 30 and Jan. 31 for the latest round of trade talks aimed at resolving the dispute between the world's two largest economies.

In December, Washington and Beijing agreed on a 90-day truce in a trade war that disrupted the movement of hundreds of billions of dollars of goods.

Recently released indicators showed signs of a slowdown in the Chinese economy.

A Reuters poll showed that China's economic growth in the fourth quarter, to be announced on Monday, has probably slowed to its slowest pace since the global financial crisis, as demand has weakened in the country and the world. ;foreign.

The dollar was slightly buoyed by higher US Treasury yields as part of improving risk appetite in broader markets.

The bank note was a little higher at 109,320 yen after peaking at two weeks of 109.40 during the night. The dollar gained about 0.7% against the Japanese currency this week.

The euro has changed little at $ 1,1339 after diving slightly during the night. The common currency was on the way to a weekly loss of 0.7%.

The 10-year Treasury yield was 2.750% after scoring 2,761% the day before, its highest level in three weeks.

The pound traded at $ 1.2978 , bordering on hopes that Britain could avoid a Brexit without agreement.

The agreement on the decision of British Prime Minister Theresa May at Brexit suffered a heavy defeat in Parliament this week, but she survived a vote of confidence that followed, dispelling some political uncertainty.

US crude oil futures continued to rise after rising on Wall Street the previous day, and announced that OPEC had sharply reduced production in December. [O/R]

US futures contracts added 1 percent to $ 52.61 per barrel. Contracts have gained more than 2% this week.

Raw Brent was up 0.8% to 61.67 dollars a barrel and on the way to gain 2% over the week.

Elsewhere in commodities, palladium rose 0.6% to $ 1,403.50 an ounce from an all-time high of $ 1,434.50 per night.

Demand has recently overtaken the supply of metal, used in catalytic converters designed to reduce car emissions. Palladium also seemed to be boosted by the government's hopes of stimulus in China, the world's largest auto market. [GOL/]

Spot of gold remained stable at $ 1,291.56 per ounce, after abandoning its most valuable palladium precious metal spot in early December.

(Edited by Richard Borsuk & Shri Navaratnam)