Asian shares veered between small losses and gains on Friday as investors awaited key China trade and lending data, and as worries over Sino-U.S. trade tensions countered optimism rooted in expectations of a Federal Reserve rate cut this month.
“Markets have enjoyed a bit of a calm spot in the U.S.-China trade war saga since the announcement of a truce and restarting of trade talks at the G20 meeting. Unfortunately, headlines are once again beginning to emerge,” ANZ analysts wrote in a morning note.
“While this wasn’t a big market mover, it does serve as a reminder that things could flare up again,” they said.
Asian Shares
- MSCI’s broadest index of Asia-Pacific shares outside Japan (MIAPJ0000PUS) was last up 0.1%. Chinese shares rose, with the CSI300 (CSI300) adding 0.7%.
- Australian shares (AXJO) dipped 0.1% and Japan’s Nikkei stock index (N225) turned higher after small early losses, adding 0.14%.
- South Korea’s KOSPI (KS11) was up 0.37%.
Currency
- The dollar fell 0.05% against the yen to 108.43 , while the euro (EUR=) gained 0.12% higher to buy $1.1265.
- The dollar index (DXY), which tracks the greenback against a basket of six major rivals, was down 0.08% at 96.970.
Commodities
- Oil prices picked up as U.S. oil producers in the Gulf of Mexico cut by output by more than half, in the face of a tropical storm and as tensions in the Middle East remained.
- Global benchmark Brent crude (LCOc1) gained 0.60% to $66.92 per barrel.
- U.S. West Texas Intermediate (WTI) crude (CLc1) was up 0.58% to $60.55 a barrel.
- Gold prices, dulled by the stronger-than-expected U.S. consumer inflation data, regained their shine thanks to renewed trade worries and rate cut expectations. Spot gold last traded up 0.28% at $1,407.60 per ounce.
Bonds
- U.S. Treasury yields had jumped on Thursday after demand was weak for a $16 billion 30-year bond auction and after the U.S. Labor Department said its consumer price index excluding food and energy rose 0.3% in June, the biggest increase since January 2018.
