ALSO READAsian shares slide as weak China, Japan manufacturing data add to Fed worries Asia shares seek to extend rally, dollar at mercy of bears Asian shares lurch lower as weak China PMI adds to Fed rate worries Stocks resume ascent on earnings hopes, euro gets lift from ECB Global stocks drop, yen rises as Trump proposes more China tariffs
By Hideyuki Sano
TOKYO (Reuters) - Global stocks recovered to three-week highs on Friday as anticipated strong earnings season took centre stage after U.S. President Donald Trump backtracked on his suggestion of an imminent missile attack on Syria.
MSCI's broadest gauge of the world's stock markets <.MIWD00000PUS> also edged up 0.1 percent after hitting a three-week high on Thursday.
The mood improved also after Trump tweeted an attack on Syria "could be very soon or not so soon at all," allaying fears of an immediate military action that investors fear could lead to wider conflict between Washington and Moscow.
In another change of tack, Trump has asked his trade advisers to look at re-joining the Trans Pacific Partnership, a multinational trade pact he withdrew the United States from early last year.
"Markets have been pushed around by Trump. His modus operandi seems to do anything that seems to be good for his re-election. If protectionism doesn't work, he may switch to international trade," said Hiroshi Watanabe, economist at Sony Financial Holdings.
"Markets are still not yet convinced yet if the U.S. is really re-joining the TPP. But if it does, it's very positive for the global economy and stock markets will like it," he added.
The improved sentiment drove up U.S. bond yields. The 10-year U.S. Treasuries yield
In the currency market, the dollar rose to 107.27 yen
The yen has become litmus test for risk sentiment, sought when investors turn risk averse because Japan's hefty current surplus gives protection to any capital outflows deficit-running countries are vulnerable to.
The Hong Kong dollar stood at 7.8498 to the dollar
Brent crude futures
(Editing by Shri Navaratnam)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)