ZCZC
ASIA-MARKETS-UPDATE
Asian markets mostly rise ahead of Trump-Xi, oil extends gains
HONG KONG, Nov 30, 2018 (BSS/AFP) – Asian markets mostly rose Friday
bringing a broadly upbeat week to a positive end as attention turns to the
much-anticipated meeting between Donald Trump and Xi Jinping.
Energy firms enjoyed gains after a rally in oil prices, while high-
yielding and emerging market currencies continued Thursday’s advances against
the dollar as the Federal Reserve shows signs it will slow down its pace of
interest rate hikes.
While the outcome of Saturday’s crunch talks between Trump and Xi hangs in
the balance, there are hopes the heads of the world’s top two economies can
find a way to ease their trade row that has seen them exchange deep import
tariffs.
Ahead of the leaders’ arrival in Buenos Aires late Thursday for the G20
meeting, there have been conflicting messages coming out of Washington about
the chances of a breakthrough, with most observers saying they do not expect
any major announcements.
“I wouldn’t be surprised at the end of this weekend if the US and China
didn’t announce a concord that basically set down a path to help resolve the
trade frictions,” Scott Minerd, chief investment officer at Guggenheim
Partners, told Bloomberg TV.
“I don’t think that out of the meeting there’s going to come much
substance, but there will be a sort of set of principles that will be
established to start the process of bringing an end to the trade war.”
On Asian equity markets Tokyo closed up 0.4 percent, Hong Kong added 0.2
percent, while Shanghai finished 0.8 percent higher, with dealers poring over
data showing Chinese manufacturing stalled in November as the effects of
Trump’s multi-billion-dollar tariffs begin to bite.
Singapore gained 0.5 percent, while Wellington, Taipei and Mumbai also
chalked up gains.
However, Seoul was off 0.8 percent after the South Korean central bank
lifted borrowing costs for the first time in a year, while Sydney shed 1.6
percent.
In early European trade London was flat, Paris rose 0.2 percent and
Frankfurt gained 0.1 percent.
MORE/HR/1433
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BCN-33
ASIA-MARKETS-UPDATE 2 LAST HONG KONG
– OPEC meeting up next –
Past the G20 meeting, traders are looking to the following weekend’s
gathering of OPEC and non-OPEC oil producers, where Saudi Arabia and others
are expected to cut output in a bid to support prices.
Crude edged up Friday, a day after enjoying a much-needed rally on a
report that Russia will join in the reduction, providing a boost to regional
energy firms.
“If a meaningful deal is reached between OPEC and Russia to tackle glut
problems, we can probably expect a meaningful rebound in energy prices,” said
Margaret Yan Yang, market analyst with CMC Markets Singapore.
However, others pointed out that no one knows how much and for how long
the output cuts will be, while at the same time the US continues to ramp up
production.
Stephen Innes, head of Asia-Pacific trade at OANDA, added: “With traders
already anticipating a one million barrels per day cut, which is arguably
priced in, it will probably take a much deeper cut to jolt the market into a
short covering rally.
“Otherwise, the market falls prey to the prevailing bearish sentiment that
will continue to drive prices lower on the premise the reduction might not be
sufficient enough to draw down surplus supplies.”
On currency markets the dollar fell further after minutes from the Fed’s
last policy meeting suggesting concern about pressing on with its current
pace of rate hikes. They come after the head of the central bank hinted at a
softer policy, sending the greenback lower.
On Friday it was down against units that have been beaten down this year
on expectations for more Fed rate hikes. Indonesia’s rupiah and the Indian
rupee were sharply higher, while the South African rand and Chinese yuan were
also enjoying buying interest.
– Key figures around 0820 GMT –
Tokyo – Nikkei 225: UP 0.4 percent at 22,351.06 (close)
Hong Kong – Hang Seng: UP 0.2 percent at 26,506.75 (close)
Shanghai – Composite: UP 0.8 percent at 2,588.19 (close)
London – FTSE 100: FLAT at 7,037.84
Pound/dollar: UP at $1.2788 from $1.2783 at 2200 GMT
Euro/dollar: UP at $1.1390 from $1.1387
Dollar/yen: DOWN at 113.43 yen from 113.45 yen
Oil – West Texas Intermediate: UP eight cents at $51.53 per barrel
Oil – Brent Crude: UP 20 cents at $59.71 per barrel
New York – Dow Jones: DOWN 0.1 percent at 25,338.84 (close)
BSS/AFP/HR/1435