By Swati Pandey
SYDNEY (Reuters) – Asian stocks boosted their profits on Monday to reach a three-month high as risky assets received Philip from Nadia reached a trade agreement between the US and China as soon as next month, as the dollar marked the time when the focus shifted to a decision on a US exchange rate.
In early Asian transactions, the broadest MSCI index of the Asia-Pacific region outside Japan () added 0.3% for its third consecutive day to earnings at 51
Chinese stocks were slightly stronger with the blue CSI 300 () chip up to 0.2%. The Hong Kong Hang Seng Index () jumped 0.7%, while Australian equities rose 0.1%.
Japan's Nikkei () was also higher, rising 0.3% to a one-year high.
The gains came after a positive session in the US and European markets on Friday.
USA. and Chinese officials are "close to finalizing" some parts of the trade agreement after high-level telephone discussions on Friday, according to the Office of the US Trade Representative and the Commerce Department of China, as talks continue.
USA. President Donald Trump said he hoped to sign the agreement with Chinese President Xi Jinping next month at a summit in Chile.
The prolonged trade war between the world's largest economies has damaged the manufacturing, export and business confidence of the world, while reducing the profits of many large industrial firms.
Optimism that Beijing and Washington were finally close to settling their dispute led the S & P500 () to surpass its July 26 final record of 3025.86, though on Friday it ended with just below that level.
E-mini futures for the S&P 500 () opened on Monday, up 0.1%.
Strong performance from companies including Intel (O 🙂 also boosted sentiment in the stock markets. More than 81% of US companies have so far beat Wall Street expectations this season, despite fears of a trade war.
The following investors expect profits from the likes of Alphabet Inc (O :), Apple (O :), Facebook (O 🙂 and Exxon (N :).
The activity later this week will be dominated by the US Federal Reserve, whose markets are expected to cut interest rates during Wednesday's meeting.
The Bank of Japan meets on Thursday. Indicators for Chinese and US production will be released on Friday.
"The outcome of the FOMC policy meeting is likely to lead to the largest market response," said Richard Grace, Sydney's chief monetary strategist.
"We also believe that the FOMC risk will pause," for future tariff decisions, Grace added.
"This means that pricing of 27.6% for an additional 25 bps in December will quickly evaporate, sending US yields and US dollars higher."
In currencies () it was more nuanced at 97,866 against a basket of six major currencies. The Japanese yen was 0.1% lower at 108.75.
The European Union has accepted London's agreement to extend Brexit, but not a new departure date This has given time for the split parliament to decide on Prime Minister Boris Johnson's call for early elections.
Earlier, sources told Reuters about the 27 countries in the European Union, which will remain after Brexit, hope to agree on Monday to delay the UK divorce by January 31 with a possible early departure.
The euro () also throws water at $ 1.1077.
"There is a sense of calm before a potential storm in which the risk of an event is fueled by political turmoil, key economic data and central bank meetings," said Chris Weston, a Sydney-based strategist at Pepperstone.
Oil prices dropped after strong profits last week.
(This story corrects Nikki's bullet point and paragraph 4 to a year, not a decade)