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Asian shares fluctuate against the backdrop of trade, geopolitical tension; Focus on the Fed meeting



© Reuters. FIC: Man looks at an electronic dashboard showing the Nikkei stock index outside the Tokyo Stock Exchange

By Tomo Utake

TOKYO (Reuters) – Asian stocks speculated on Monday after investors became cautious ahead of the Fed , while political tensions in the Middle East and Hong Kong kept risky appetite.

European equities were expected to open higher, with the French gains of 0.4% and Germany increasing by 0.2%.

MSCI's broadest Asia-Pacific index outside of Japan was slightly changed in the early afternoon after it was slightly less open. The average value of the Japanese markets was also closed

Asian markets grew rapidly after Hong Kong jumped 1

.4%. On the weekend, the country's leader, Kari Lam, has rushed to a bill that would allow extradition to China.

Hang Seng fell for three sessions in a row until Friday after the extradition bill prompted mass protests and some of the worst. riots observed on the territory after Britain handed it over to the Chinese government in 1997.

"Last week, the issue looked as if it were going to become another difficult time between the US and China." As the bill is now postponed indefinitely, things are likely to calm down, which is good for the markets, "said Hiriwi Ueno, senior strategist at Sumitomo Mitsui Trust Asset Management.

Mainland China shares traded narrowly, with the benchmark rising 0.2% and the blue chip CSI 300 rising 0.1%.

US Secretary of State Mike Pompeo told Fox News that President Donald Trump will raise Hong Kong's human rights issue with Chinese President Shi Dingping at a potential meeting of the two leaders at the G20 summit in Japan later this month. Street stocks ended lower on Friday after investors became cautious before the Fed this week, while a Broadcom warning (NASDAQ 🙂 on demand slowed down on chip makers and added to worries between the US and China. Investors are expecting more traces of the Fed after politicians have raised expectations of interest rates cut in recent weeks amid worries about the rising consequences of the US-Sino trade war.

Strong US retail sales figures on Friday reversed expectations for a fall in Fed interest rates this week to 17.5% from 31% shortly before Friday's release, according to CME's FedWatch tool Group. But bets to ease the match in July remain high – 84%.

"The upcoming week is likely to give some clarification to investors on three fronts that have been the source of uncertainty," FOMC said, with updated forecasts, was the focus of attention, "said Mark Chandler, chief strategist at Bannockburn Global Forex , Chandler said there will also be a private gauge for the euro area manufacturing sector as well as the trade friction in the US and China.

Financial markets have been removed by the sudden escalation of Sino-US trade tensions in early May, with growing concerns among investors that a prolonged opposition may cause the world economy to recession. of uncertainty after the United States accused Iran of attacking two oil tankers in the Gulf of Oman last week.

Hopes that global central banks will keep open spiders of money, help mitigate some of the fears and eyes The two-day Fed meeting begins on Tuesday.

The Japanese bank is also meeting this week and is expected to step up its commitment to maintaining a massive stimulus program for a while.

The retail sales report also sent a shortened yield curve. [L2N23L10H] 10-year benchmark notes were the latest to 2.106%, while yields on two-year bonds rose, shrinking between two and ten-year yields to 23.7 bps, compared to more than 30 earlier this month.

A Reuters study showed that an increasing number of economists expect Fed politicians to cut interest rates this year, although the majority still thinks it is stable.

In the currency markets, a fifth of the six major currencies rose to 97,583, its highest level in nearly two weeks, as US retail sales data reduced fears that the world's largest economy is slowing down sharply.

The index stood at 97,510 while the euro reached 1.1216 dollars, near the bottom of its weekly trading range.

Oil prices rose on Monday after US Secretary of State Pompeo said Washington would take all necessary action to ensure safer shipping in the Middle East, as the tensions imposed after attacks on tankers last week. futures added 0.4 percent to 62.27 dollars a barrel, while US WTI futures rose 0.3 percent to $ 52.67.

cut 0.2 percent to 1 338.17 dollars an ounce after reaching a 14-month high on Friday.

jumped overnight to $ 9,391.85, its highest level in 13 months. The latter was quoted at $ 9,193.21.


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