Asian stocks edged higher Tuesday as investors awaited news from the resumption of U.S.-China trade talks. The yen fluctuated ahead of a policy decision from the Bank of Japan.
The MSCI Asia Pacific Index rose 0.4% as of 10:31 a.m. in Tokyo. Japan’s Topix Index rose 0.6%. Korea’s Kospi Index gained 0.4%. Australia’s S&P/ASX 200 Index gained 0.4%. Shanghai Composite Index climbed 0.3%. Hang Seng Index rose 0.3%.
Shares saw modest gains in Japan, South Korea and Australia, which could see a record close if the advance holds. Hong Kong stocks also edged up despite continuing protests in the city, with China warning that unrest had gone “far beyond” peaceful protest. Earlier, the S&P 500 Index fell for the second time in three sessions after reaching a record Friday as Amazon Inc., Facebook Inc., Alphabet Inc. and Netflix Inc. all slid. Treasury yields were little changed and the dollar touched its highest in almost two months.
Investors are likely to opt for the sidelines as they await developments on trade with Chinese and American negotiators gathering for two days of talks Tuesday, three months after negotiations broke down. Fed Chairman Jerome Powell’s post-meeting press conference Wednesday will provide an chance to gauge the trajectory of U.S. rates after the central bank is anticipated to ease policy.
In Asia, the Bank of Japan meets Tuesday and is widely expected to sit tight, though some observers have speculated the board could tweak its forward guidance on policy.
Meanwhile, as corporate reporting seasons roll on in the U.S., Japan and Australia, traders will be looking for any impact from the protracted trade dispute. Japan’s factory output fell more than expected in June as the trade tensions and a slowdown in the global economy dragged exports lower for a seventh straight month.
Elsewhere, the pound extended a slide to its lowest in more than two years as U.K. Prime Minister Boris Johnson stepped up preparations for a no-deal Brexit. Oil gained on speculation that demand will get a bump from the potential U.S. Federal Reserve rate cut. The British pound fell 0.4% to $1.2175 after dropping 1.3%, its biggest slide in more than eight months.
Source : Bloomberg