Asian stocks appreciate upward on the hope of progress in the US-China negotiations

TOKYO (Reuters) – Asian stocks posted narrow gains on Friday against hopes of progress in US-China trade talks, while global bond yields rose after a long period of waning concerns over the economic outlook.

The largest MSCI index, composed of Asian equities outside Japan, rose 0.1%, while the Japanese Nikkei index gained 1.0%.

The S & P 500 Thursday gained 0.36% and the Nasdaq Composite, 0.34%.

Despite recent market turbulence, the S & P 500 gained 12.3% this quarter, which would be its best quarterly performance since 2009 if it were maintained.

The mood eased after US officials said China had made proposals in trade talks with the United States on a range of more ambitious issues than before, including the forced transfer of technology.

The yield on 10-year US bonds has risen slightly, reaching 2.391% after a 15.25% low reached 15 months ago on Thursday, after a nearly staggering fall since the Fed's conciliatory tone investors worry more about the US dollar. economic prospects.

Investors have been alert since the 10-year note yield fell below the three-month US Treasury yield last Friday, a reversal of the yield curve that is widely seen as a recession indicator.

Data released Thursday shows that US economic growth was slower than expected in the fourth quarter, as GDP growth was revised to 2.2% from 2.6% previously.

"The economy is softening and will do so for the moment. But the question of whether the US is entering recession is still debatable, "said Mutsumi Kagawa, chief strategist at Rakuten Securities.

"Lower bond yields will support the economy, while US President (Donald) Trump will likely take action to support the economy as he seeks re-election. The economy could resume later this year, "he said.

On the currency market, the euro was 1.1233 USD, after slipping to a three-week low of 1.11214 USD, as speculation grew over the introduction by the Central Bank of a multi-level deposit rate.

The yen was more stable at 110.64 to the dollar, against 109.70 the highest of Monday over a month and a half.

As a sign of concern over political and economic uncertainties, the Swiss franc performed well, reaching its highest level in 20 months, at 1.11665 for one euro.

The Turkish lira licked its wounds after a plunge of 4% on Thursday. President Tayyip Erdogan blamed the currency's weakness for Western attacks ahead of local elections across the country on Sunday.

Palladium, which lost 6.6% of its value on Thursday, has lost a sixth of its value since the peak reached last week, fearing an economic slowdown likely to curb demand.

The pound fell to 1.3050 USD while the prospect of a quick agreement on Brexit faded with the British Parliament, but again without reaching an agreement on the way forward.

Oil futures were recovering quickly from the damage caused by Trump's call to OPEC to increase crude oil production in order to lower prices.

US crude futures traded at $ 59.54 per barrel, up 0.4% on the day and recovering from the $ 58.20 low announced on Thursday.