BCN-01, 02 Asia markets rally tempered by profit-taking, eyes on trade talks

220

ZCZC

BCN-01

ASIA-MARKETS

Asia markets rally tempered by profit-taking, eyes on trade talks

HONG KONG, April 4, 2019 (BSS/AFP) – Asian markets were mixed Thursday as
growing expectations that China and the United States will reach a trade
agreement were offset by profit-taking after an extended rally.

Hopes Britain will avert crashing out of the EU next week also instilled
some optimism on trading floors, with the pound extending gains.

High-level talks between the world’s top two economies resumed Wednesday
in Washington, with reports saying they are edging towards an agreement to
bring the curtain down on a long-running row that helped batter markets last
year.

Bloomberg News said the deal they are working on would give China until
2025 to meet pledges on purchases and to let US firms wholly own their
businesses in the country.

It said the aim was to get everything in place for presidents Donald Trump
and Xi Jinping to sign off on a trade deal.

White House economic adviser Larry Kudlow the talks were “making good
headway” but added: “We’re not there and we hope this week to get closer.”

The Bloomberg report follows an article in the Financial Times saying they
were closing in on an agreement.

“The market is becoming more convinced that a deal is coming between China
and the US,” Greg McKenna, at McKenna Macro, said in a note. “Enforcement on
the US side and lifting tariffs to cement the deal on the Chinese side seem
now to be the points of contention.”

Global stocks have enjoyed a stellar year so far thanks to confidence in a
deal being reached.

In Asia on Thursday, Hong Kong struggled to build on seven days of gains,
edging down slightly in early trade, while Sydney was off 0.8 percent,
Wellington dropped 0.6 percent and Manila fell 0.3 percent.

– May, Corbyn hold talks –
However, Tokyo ended the morning 0.3 percent higher and Shanghai jumped
more than one percent, while Singapore added 0.2 percent and Seoul gained 0.5
percent.

MORE/HR/0932

ZCZC

BCN-02

ASIA-MARKETS 2 LAST HONG KONG

Regional investors were given a positive lead from Wall Street though the
gains there were tempered by data showing private US firms hired new staff at
their slowest pace for 18 months in March.

The below-forecast reading comes days before the release of key government
figures, which are closely watched for an idea about the state of the US
economy.

In London, Prime Minister Theresa May met opposition Labour leader Jeremy
Corbyn on Wednesday for crisis talks on resolving the Brexit crisis with just
over a week to go before Britain is due to leave the European Union.

Representatives for both sides described the talks as “constructive” as
they look to avert a potentially calamitous no-deal divorce with another
meeting planned for Thursday.

At the same time MPs voted by the narrowest margin for draft legislation
that would force the government to seek to delay Brexit beyond the April 12
deadline.

The premier has already said she will seek a second “short” delay at an EU
summit on April 10.

The developments supported the pound but parliament remains divided with
hardliners fearing a “soft” divorce will leave Britain still linked to the
bloc.

– Key figures around 0230 GMT –

Tokyo – Nikkei 225: UP 0.3 percent at 21,768.85 (break)

Hong Kong – Hang Seng: DOWN 0.2 percent at 29,941.01

Shanghai – Composite: UP 1.1 percent at 3,250.51

Pound/dollar: UP at $1.3176 from $1.3157 at 2040 GMT

Euro/pound: DOWN at 85.34 pence from 85.38 pence

Euro/dollar: UP at $1.1245 from $1.1234

Dollar/yen: UP at 111.50 yen from 111.48 yen

Oil – West Texas Intermediate: DOWN eight cents at $62.38 per barrel

Oil – Brent Crude: DOWN two cents at $69.29 per barrel

New York – Dow: UP 0.2 percent at 26,218.13 (close)

London – FTSE 100: UP 0.4 percent at 7,418.28 (close)

BSS/AFP/HR/0935