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Global Markets: Stocks pare gains with next phase of U.S.-China trade saga in focus, euro buoyant

Reuters  |  TOKYO 

By Shinichi Saoshiro

(Reuters) - Asian stocks rose modestly on Wednesday, paring earlier gains as optimism that trade ties between and were on the mend gave way to questions about the next phase of the diplomatic tit-for-tat between the two countries.

MSCI's broadest index of shares outside was 0.35 percent higher. It gained 1.2 percent the previous day after a speech by Chinese was seen as striking a more conciliatory stance following a week of tit-for-tat tariff threats between and

The index's surge lost some steam, however, with some Asian equity markets staggering, as the world's two biggest economies are still seen needing to clear more hurdles before reaching any sort of settlement over trade issues.

"The and are still at a phase in which they are attempting to probe the intentions of the other," said Masahiro Ichikawa, at in

"While showed how far it can go, the markets won't settle down until the two powers reach an actual agreement. The next focal point is how the responds."

Australian stocks were down 0.25 percent and Japan's Nikkei dipped 0.1 percent.

South Korea's rose 0.25 percent, Hong Kong's Hang Seng climbed 0.5 percent and added 0.2 percent.

The Dow advanced 1.8 percent, the rose 1.7 percent and Nasdaq added 2.1 percent overnight after Xi on Tuesday pledged to further open up the and promised to cut import tariffs on products including cars.

In currencies, the euro was a shade higher at $1.2358 and on its fourth session of gains.

The common currency was not far from a two-week high of $1.2378 scaled overnight after policymaker told in an interview that its 2.55-trillion euro bond buying program would be wound down by the end of this year.

The euro has risen about 3 percent this year on expectations that the ECB would eventually normalise monetary policy and hike interest rates.

The dollar dipped 0.05 percent to 107.130 yen. The greenback had gained 0.4 percent overnight when an uptick in risk appetite weakened demand for its Japanese peer, often sought in times of market turmoil and political tensions.

The dollar index against a basket of six major currencies was little changed at 89.600 after shedding 0.3 percent the previous day.

remained elevated, after steep gains in the previous session, as the commodity markets eyed an escalation of tensions.

U.S. crude futures were little changed at $65.52 a barrel after surging more than 3 percent on Tuesday on the back of the surge in risk appetite in the broader markets.

Brent dipped 0.1 percent to $70.96 a barrel after jumping 3.5 percent on Tuesday, when it rose to $71.34, highest since December 2014.

(Editing by and Sam Holmes)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, April 11 2018. 08:04 IST
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