Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

GLOBAL MARKETS-Asian shares gain on economy hopes, oil edges up on Mideast tensions

Published 2019-09-19, 08:57 p/m
GLOBAL MARKETS-Asian shares gain on economy hopes, oil edges up on Mideast tensions
EUR/USD
-
USD/JPY
-
US500
-
JP225
-
CL
-
FTEU3
-
MIAPJ0000PUS
-

* Nikkei up 0.3%, ex-Japan Asia up 0.1%

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

* Sterling rises after Juncker's comments on Brexit

By Hideyuki Sano

TOKYO, Sept 20 (Reuters) - Asian share prices inched higher on Friday as economic stimulus around the world eased fears of economic deceleration while crude oil prices climbed on concerns that last weekend's attacks on Saudi Arabia's oil facilities still pose supply risks.

On Thursday, the S&P 500 .SPX ended flat, staying than less than 1% below its closing record high hit in July while the pan-European FTSEurofirst 300 .FTEU3 index also came within sight of this year's peak.

Japan's Nikkei .N225 rose 0.34% to come within striking distance of its year-to-date peak.

Asian shares have been lagging global peers in recent months and MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS is on course to post its first weekly loss in five, although it rose 0.08% early on Friday.

Monetary easing by the U.S. Federal Reserve this week and by the European Central Bank last week underpinned investor sentiment, while the latest U.S. economic data also eased worries about slowdown in the world's largest economy.

The number of Americans filing applications for unemployment benefits increased less than expected last week while home resales rose to a 17-month high in August. are starting to price in the possibility of re-acceleration in the global economy next year. So far this month China has taken steps to support the economy, and U.S. and European central banks eased policy," said Nobuhiko Kuramochi, chief strategist at Mizuho Securities.

"There are hopes of an interim or partial trade deal between China as U.S. President Trump will need to shore up the economy next year before the election," he added.

U.S. and Chinese deputy trade negotiators resumed face-to-face talks for the first time in nearly two months on Thursday, trying to lay the groundwork for high-level talks in early October. for a deal were so strong that the markets shrugged off a media report that a trade adviser to Trump has said the U.S. president is ready to raise tariffs to 50 or 100 percent. New York Fed continued to inject a large amount of cash in money markets to deal with funding squeeze since the start of week, helping to bring down interest rates in the U.S. repo market, a key funding market USONRP= . currency markets, the British pound kept its uptrend after European Commission President Jean-Claude Juncker said a Brexit deal is possible and that if the Irish border backstop which the British government wants removed could be replaced with alternatives, it would not be needed. traded at $1.2525 GBP=D4 , up 0.02% so far on the day, having hit a two-month high of $1.2560 on Thursday. The British unit stood near its highest levels in almost four months versus the euro at 88.19 pence per euro EURGBP= .

The euro was at $1.10455 EUR= , staying in a holding pattern this week.

The yen traded flat at 108.03 yen to the dollar JPY= , off 1-1/2 month low of 108.48 yen hit on Wednesday.

The Brazilian real fell 1.4% on Thursday to 4.167 to the dollar after the central bank slashed borrowing costs to an all-time low and signalled it was prepared to do so again in the coming months. prices bounced back on continued worries about the stability of oil supply as tensions between Saudi Arabia and Iran showed little sign of abating after a weekend attack on Saudi oil installations. forces on Friday launched a military operation on northern Yemen against what it described as "legitimate military targets", an incident that could aggravate regional tensions. said on Thursday it was building a coalition to deter Iranian threats while Tehran has warned Trump against being dragged into a war in the Middle East and said it would meet any offensive action with a crushing response. (Editing by Lincoln Feast)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.