* Investors cling to hopes of eventual compromise
* China private manufacturing PMI surprisingly strong
* Yen softens on stimulus, pound slips on opinion polls
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Hideyuki Sano
TOKYO, Dec 2 (Reuters) - Global shares rose on Monday and
oil rebounded after upbeat China manufacturing surveys and as
investors clung to hopes Beijing and Washington could reach a
compromise in trade talks.
MSCI's index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS gained 0.46%, reclaiming some of its loss on
Friday while Japan's Nikkei .N225 jumped 1.11%.
U.S. stock futures ESc1 gained 0.31% to near record highs
after a dip in a truncated U.S. session on Friday due to
Thanksgiving holiday.
Mainland Chinese shares also went higher, with the bluechip
CSI300 index .CSI300 rising 0.59% from a three-month low hit
on Friday.
The market enjoyed a boost after the Caixin/Markit
Manufacturing Purchasing Managers' Index (PMI) index rose to
51.8 in November from 51.7 in the previous month, marking the
fastest expansion since December 2016. "Output and new orders are both strong. The survey seems to
suggest domestic demand is pretty strong even if one cannot have
unrestrained optimism on the economic outlook," said Naoki
Tashiro, president of T.S. China Research.
MSCI's broadest gauge of world shares .MIWD00000PUS ticked
up 0.1% and stood within reach of its all-time peak hit in
January 2018.
While U.S. legislation supporting Hong Kong protesters last
week raised concerns about U.S.-China trade negotiations,
investors are nonetheless holding the broad view that a further
escalation in the trade war can be avoided.
"It looks a bit difficult for two countries' leaders to
shake hands and sign a deal this month. What is more likely is
to essentially kick the can, with China buying more U.S. farm
products while the U.S. postpones its next tariffs," said
Hiroyuki Ueno, senior strategist at Sumitomo Mitsui Trust Asset
Management.
"Markets will consider such an arrangement as a de facto
deal whether they officially sign it or not," he said.
Investors have long thought that the United States will
avoid imposing an additional 15% tariff on about $156 billion of
Chinese products on Dec. 15 after signing a deal with China.
The two countries have been so far unable to bridge the gap
over existing tariffs on Chinese goods, with Beijing demanding
scrapping them as a part of any trade deal. A trade deal between United States and China was now
"stalled because of Hong Kong legislation", news website Axios
reported on Sunday, citing a source close to U.S. President
Donald Trump's negotiating team. China's Foreign Ministry last week lambasted U.S.
legislation signed by President Donald Trump on Wednesday
backing protesters in Hong Kong as a serious interference in
Chinese affairs.
In the currency market the yen weakened, helped also by
expectations that Japan could put together a large-scale fiscal
spending package to bolster its economy. The dollar rose 0.3% to 109.73 yen JPY= , a six-month high.
The euro stood little changed at $1.10175 EUR= , bouncing
back from seven-week low of $1.0981 hit in U.S. trade.
The British pound slipped 0.24% to $1.2912 GBP=D4 after
opinion polls during the weekend showed Prime Minister Boris
Johnson's Conservative Party saw its lead over the opposition
Labour Party narrow. Oil prices bounced back a tad after a big slump on Friday on
record high U.S. crude production.
The market drew support from expectations that OPEC and its
allies are likely to extend existing oil output cuts when they
meet this week , with non-OPEC oil producer Russia supporting
Saudi Arabia's push for stable oil prices amid the listing of
state oil giant Saudi Aramco.
Brent crude LCOc1 futures rose 1.34% to $61.30 a barrel
while U.S. West Texas Intermediate (WTI) crude CLc1 gained
1.70% to $56.11 per barrel.
(Editing by Sam Holmes)