Asian shares hit their highest in nearly eight months on Monday after the United States and China agreed on a preliminary trade deal, with Australian shares leading the way on expectations of more easing of monetary policy there.
- Positive sentiment helped push the MSCI’s broadest index of Asia-Pacific shares outside Japan to its highest level since April 18. It was last up 0.25%.
- Australia’s S&P/ASX 200 led the way as it jumped 1.63%, while shares in Taiwan added 0.22%.
- The blue-chip CSI300 index struggling to rise further after trade hopes fanned a near 2% rise on Friday.
- The CSI300 index turned higher in the afternoon and was last up 0.3%, helped by data showing the country’s industrial output growth and retail sales jumped more than expected in November.
- Japan’s Nikkei 225 succumbed to some profit-taking, falling 0.29% after surging 2.55% to a 14-month closing high on Friday.
- However, the news of a deal was still enough to send the S&P 500 to a record closing high of 3,168.8, up 0.01%.
- The Nasdaq Composite added 0.2% to end at 8,734.88, also a record, and the Dow Jones Industrial Average rose 0.01% to 28,135.38.
- The dollar was slightly higher against the yen at 109.39 and the euro was up 0.14% at $1.1135.
- Sterling, which jumped last week after the UK election, gained 0.48% to $1.3389.
- The dollar index, which tracks the greenback against a basket of six major rivals, was down 0.12% at 97.053.
- Oil prices, which had risen on Friday following the deal, cooled in early Asian trade on Monday.
- Brent crude shed 0.31% to $65.02 per barrel, and U.S. West Texas Intermediate crude was down 0.37% at $59.85 per barrel.
- Spot gold prices were flat at $1,475.68 per ounce.
U.S. Treasury yields moved higher on Monday, reflecting a more positive mood.
- Benchmark 10-year Treasury notes rose to 1.8365% compared with their U.S. close of 1.821% on Friday.
- The two-year yield touched 1.6223% compared with a U.S. close of 1.604%.