· Asian shares extended gains on Monday to hit a three-month high as risk assets got a fillip from hopes of a U.S.-China trade deal as soon as next month while the dollar marked time as focus shifts to a U.S. rate decision.
In early Asian trades, MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 0.3% for its third straight day of gains to 518.29, the highest since late July.
The gains came after a positive session in U.S. and European markets on Friday.
Investors next await earnings from the likes of Alphabet Inc (GOOGL.O), Apple (AAPL.O), Facebook (FB.O) and Exxon (XOM.N).
Activity later in the week will be dominated by the U.S. Federal Reserve, which markets expect is all but certain to lower interest rates at its Wednesday meeting.
The Bank of Japan meets on Thursday. On Friday, indicators for Chinese and U.S. manufacturing will be released.
· The Nikkei share average ticked up on Monday to a one-year high, with investors shifting funds to global cyclicals from domestic demand-oriented shares on hopes of a U.S.-China trade deal.
The Nikkei share average rose 0.30% to 22,867.27, hitting its highest levels in a year. The broader Topix gained 0.09% to 1,648.43.
Sentiment was boosted by comments from U.S. and Chinese officials that they are “close to finalizing” some parts of a trade agreement after high-level telephone discussions on Friday.
Traders reacted quickly by buying shares perceived to be sensitive to global economic cycles, including semi-conductor chip-related shares and shipping firms.
· China stocks closed higher on Monday, underpinned by gains in tech heavyweights after Beijing pledged more support for the sector, amid hopes that the Sino-U.S. negotiators were making headway in their trade talks.
The blue-chip CSI300 index ended 0.8% firmer at 3,926.59, while the Shanghai Composite Index closed up 0.9% to 2,980.05.
· European stocks opened mixed Monday as traders await a key decision from the European Union over the U.K.’s Brexit delay and look ahead to a meeting of the U.S. Federal Reserve later this week.
The pan-European Stoxx 600 slipped just below the flatline in early trade, with food and beverage stocks falling 0.6% to lead losses while autos climbed 0.9%.
EU leaders are widely expected to approve a three-month extension to the U.K.‘s October 31 deadline for leaving the bloc, while British Prime Minister Boris Johnson on Sunday increased pressure on opposition leaders to hold an early general election in order to break the long-standing impasse in the U.K.’s Parliament over Brexit.
Reference: Reuters, CNBC
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