Friday 8th November: Asian markets retreat on uncertain terms of US-China trade deal

Global Markets:

• Asian Stock Markets : Nikkei up 0.12%, Shanghai Composite up 0.15%, Hang Seng down 0.57%, ASX down 0.04%
• Commodities : Gold at $1469.65 (+0.22%), Silver at $16.97 (-0.22%), Brent Oil at $62.09 (-0.32%), WTI Oil at $56.88 (-0.47%)
• Rates : US 10-year yield at 1.907, UK 10-year yield at 0.764, Germany 10-year yield at -0.250

News & Data:

• (CNY) USD-Denominated Trade Balance 42.8B vs 40.6B expected
• (CNY) Trade Balance 301B vs 287B expected
• (USD) 30-y Bond Auction 2.43|2.2 vs 2.17|2.2 previous
• Japan Sep Wages Rise; Real Pay Positive
• China exports fall again in worst run for three years, but October drop smaller than expected

Markets Update:

Asian stock markets are mixed on Friday despite the overnight gains on Wall Street amid renewed optimism about a U.S.-China trade deal.

A spokesman for the Chinese Commerce Ministry said the U.S. and China have agreed to lift existing tariffs on each other’s goods in phases as part of a phase one trade agreement. However, a report from Reuters said the plan has drawn fierce opposition from many of Trump’s advisers.

The Australian market is declining in choppy trade despite the gains on Wall Street. Weak corporate earnings results dampened sentiment. Mainland Chinese shares rose by the afternoon. The Shanghai composite added 0.2% and the Shenzhen component rose 0.5%. Hong Kong’s Hang Seng index, on the other hand, shed 0.6%. In Japan, the Nikkei 225 gained 0.1% as shares of index heavyweight and conglomerate Softbank Group jumped 3%. The Topix index also rose 0.1%.

As investors wound back their buying in safe assets, the 10-year U.S. Treasuries yields jumped to 1.9730% on Thursday to a three-month peak, and last stood at 1.9138%. In the currency market, safe-haven currencies lost some of their edge, though moves were small.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 98.115 after rising from levels below 97.6 seen earlier in the week.

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