Asia remains calm as China cools, news of Brexit is expected

SYDNEY (Reuters) – Asian markets kept their cool on Monday, as statistics showed a slowdown in the Chinese economy late last year, highlighting the urgent need for economic stimulus as Beijing fights against trade with the United States.

Investors are also waiting to hear British Prime Minister Theresa May's "Plan B" for Brexit, due to be presented to Parliament later on Monday.

The world's second-largest economy grew 6.4% in the fourth quarter from the previous year, as expected, and at the same levels last seen in early 2009 during the global financial crisis.

However, industrial production rose a surprisingly strong 5.7%, while retail sales rose 8.2% in December over the previous year.

"Policymakers seem to weigh the medium-term risks of a further increase in debt relative to short-term trends – hence the relatively modest stimulus policy conducted so far," he said. said Gerard Bung, senior economist at NAB.

"They could be dependent on data for two or three quarters to make a big move," he said.

The markets responded calmly, with the broadest MSCI index of Asia-Pacific equities out of Japan .MAPJ0000PUS rising 0.2%, following a 1.6% rise last week.

Chinese blue chips .CSI300 gained 0.7%. Japanese Nikkei .N225 added 0.3%, thanks to the recent yen pullback. The Australian dollar AUD = D, which often used a liquid substitute for investment in China, was raised to $ 0.7167.

The future of the E-Mini for the S & P 500 ESc1 has decreased by 0.2%, but trade has been light with the United States on vacation. The Spreadbetters have highlighted the low opening earnings for the main European stock exchanges.

Chinese stocks rallied on Friday after US Treasury Secretary Steven Mnuchin discussed the removal of some or all of the tariffs on imports from China, an badertion later denied.

US President Donald Trump said Saturday that there had been progress towards a trade deal with China, but denied that he was considering removing tariffs.

"Things are going very well with China and trade," he told reporters. Chinese Vice Premier Liu He will travel to the United States on January 30 and 31 for the next round of talks with Washington.

"B" FOR BREXIT

In Britain, May will return to Parliament on Monday to explain how she plans to break the stalemate over Brexit after her legislator rejected the deal last week.

May told ministers Sunday that she was looking for ways to make the so-called Northern Ireland support more palatable for her Conservative Party and Northern Ireland allies.

"We expect only incremental changes from" Plan A "as the talks between the parties fell flat," wrote TD Securities badysts in a note.

"Amendments are likely to be introduced all week, as MPs attempt to cancel the" No-Deal ", to institute a second referendum and perhaps to establish a permanent customs union," they said. added. "Mai will probably visit Brussels to seek concessions from the EU."

Uncertainty kept the pound at 1.2867 USD =, after briefly reaching 1.3 000 USD last week.

The dollar was held on the yen at JPY 109.61 =, while the euro was close to the floor of its recent trading range at USD 1.13875. Against a basket of currencies, the dollar was slightly more moderate at 96,295 .DXY.

In commodity markets, XAU gold spot gold remained steady at $ 1,281.79 per ounce.

Oil prices continued to rise after OPEC detailed its production reduction activities in order to reduce global oversupply.

Brent crude LCoC1 rose 24 cents to $ 62.94 per barrel. US CLc1 crude futures gained 23 cents to $ 54.03 a barrel.