GLOBAL MARKETS-Asian shares tick up on China property relief, focus shifts to Sino-U.S. talks

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HONG KONG, Nov 16 (Businesshala) – Asian shares were mostly up on Tuesday, as relief in China’s property sector supported sentiment, while investors also weighed in on a crucial meeting between US President Joe Biden and Chinese leader Xi Jinping. Kept a close watch.

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Biden and Xi Jinping opened their closely watched conversation warmly, with both leaders emphasizing their responsibility to the rest of the world to avoid conflict.

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MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.27% to a 2-1/2-week high, while Japan’s Nikkei rose 0.39%.

“Investors will keep a close eye on the first Biden-Xi summit to see if the exchange will make any improvements to an already bad relationship,” said David Chao, global market strategist for Asia Pacific (ex-Japan) at Invesco. “Although no success is expected, it is still a positive first step.”

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Chao said markets in Asia are also responding better this week to expected economic data from China, released on Monday, and mainland property market conditions, Chao said.

“So far we have not seen a lack of trust in some developers and the government has come out more strongly to ensure that homeowners are safe,” he said.

Chinese blue chips rose 0.4% and Hong Kong benchmarks 0.7%, helped by asset stocks

An index of Hong Kong-listed mainland Chinese developers rose up to 3%. However, shares of Kaisa Samridhi, a property services arm of troubled developer Kaisa Group, fell 14% after the bell as the company said operations would not be affected by its parent’s liquidity issues.

US stock futures, the S&P 500 E-Minis, advanced 0.11% and Nasdaq futures rose 0.17%.

Wall Street closed with little change as rising Treasury yields dampened appetite for technology stocks, but fueled interest in financials.

Benchmark US Treasury yields rose nearly five basis points to a three-week high on Monday, as companies to sell debt before liquidity thins during holiday trading ahead of a US government sale of new 20-year bonds on Wednesday. Ran.

They were at a low of 1.6094% on Tuesday, although still up sharply after a one-month low of 1.42% a week ago.

A rise in yields also helped the dollar, which remained strong against a basket of peers at a 16-month high.

Investors’ assessment of differing responses to rising inflation from global central banks is also driving the money market.

European Central Bank President Christine Lagarde on Monday stressed market bets for a tighter monetary policy, saying doing so now to contain inflation could stall the euro area’s recovery.

This pushed the euro closer to a 16-month low of $1.354. The pound was close to a one-year low of $1.3359 and the dollar was at 114.17 against the yen, up from October’s four-year high of 114.69.

Also helping the dollar is recent data showing a stronger US economy that has also cast doubt on the Fed’s view that price pressures will be temporary, fueling speculation that interest rates may rise sooner than previously thought. will be lifted.

Britain will publish its September labor market report later on Tuesday, which CBA analysts said could “make or break the case for rate hikes this year”.

Later, US retail sales, trade prices and industrial output for October are also giving another indication about the health of the economy.

US crude rose 0.37% to $81.18 a barrel in oil markets. Brent crude rose 0.5% to $82.48 a barrel.

Gold was stable, with spot gold trading at $1,862 an ounce compared to Monday’s five-month high of $1,870.

Reporting by Alan John; Editing by Sam Holmes


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