SHANGHAI, Oct 11 2019 : Asian shares and U.S. stock futures rose today after U.S. President Donald Trump said he would meet with China’s top trade negotiator, while sterling retreated after rallying on revived hopes of a possible Brexit deal.
Investors’ renewed appetite for riskier assets weighed on the safe-haven yen JPY= and U.S. Treasury prices, while oil stayed firm on comments about possible supply cuts from the head of OPEC.
In early Asian trade, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5%, following on from gains on Wall Street. S&P e-mini futures added 0.2%.
Australian shares climbed 0.8%, while Japan’s Nikkei stock index .N225 gained 0.9%.
Graphic: Asian stock markets – tmsnrt.rs/2zpUAr4
The more bullish market mood came after a first day of trade talks between top U.S. and Chinese negotiators that Trump characterized as “very, very good.”
A White House official said the talks had gone “probably better than expected” and a U.S. Chamber of Commerce official briefed by both sides raised the possibility of a currency agreement this week.
“On this score details on a potential currency pact will be important,” they said.
The dollar rose 0.1% against the yen to 108.07 JPY=, while the euro was flat at $1.1004 and the pound was slightly lower, fetching $1.2432.
The dollar index, which tracks the greenback against a basket of six major rivals, was down at 98.663 after posting its biggest daily drop in five weeks on waning safe-haven demand for the currency.
The British pound jumped nearly 2% yesterday, its biggest daily gain since March, after Irish Prime Minister Leo Varadkar said a Brexit deal could be clinched by the end of October after what he called a very positive meeting with his British counterpart, Boris Johnson.
The move away from safe havens also lifted the yield on benchmark 10-year Treasury notes to 1.6716% compared with a U.S. close of 1.656% yesterday. Yields rose across the curve, with two-year notes yielding 1.5464% compared with a U.S. close of 1.53%.
In commodity markets, oil prices remained higher after the head of OPEC said the organization could take action to balance oil markets, including a deeper cut in oil supplies.
Rising risk appetite tarnished gold’s appeal, pushing spot gold down 0.16% to $1,491.65 per ounce. – Reuters