(Bloomberg) -- Asian stocks traded mixed Tuesday as trade fatigue and concern over Hong Kong weighed on positive sentiment from a fresh wave of merger and acquisition activity.
Shares in Japan and Australia saw modest gains, while Hong Kong stocks underperformed after the city’s chief executive refrained from any new proposals in the wake of Sunday’s local elections. Chinese shares fluctuated. U.S. futures were little changed, after jumping earlier in the wake of a Xinhua report on the latest phone call between negotiators. The yuan also advanced before giving up most of the move. Treasuries were steady, as was the dollar.
Among the M&A deals that caught investor attention and helped Wall Street log further record highs earlier was Charles Schwab (NYSE:SCHW) Corp.’s agreement to buy TD Ameritrade Holding Corp., and LVMH’s plan to purchase Tiffany & Co.
Global equities are heading for another month of gains amid hopes that a phase-one trade deal is around the corner. China and the U.S. agreed to stay in contact on the remaining points for a “phase one” trade deal during a phone call Tuesday morning Beijing time, the Ministry of Commerce said in a statement. Still, Hong Kong remained a source of tension, with Beijing summoning America’s ambassador to express its opposition to U.S. interference.
“There are more incentives now on both sides to get this trade deal done compared to when the trade talks first fell apart earlier this year because the Chinese economy has slowed down much more since then and in the U.S. Trump is facing his 2020 election campaign,” Amy Xie Patrick, a portfolio manager at Pendal Group, told Bloomberg TV in Sydney.
Elsewhere, Alibaba (NYSE:BABA) Group Holding Ltd. debuted on the Hong Kong bourse at HK$187 from its IPO price of HK$176. Oil fluctuated and gold was little changed.
Here are some key events coming up this week:
- Reserve Bank of Australia Governor Philip Lowe will give a speech on unconventional monetary policy on Tuesday evening in Sydney.
- U.S. consumer spending data is due Wednesday, along with GDP, jobless claims and durable goods.
- The U.S. celebrates Thanksgiving on Thursday, when equity and bond markets will be shut.
- The Bank of Korea sets policy on Friday.
Stocks
- The MSCI Asia Pacific Index rose 0.3% as of 1:36 p.m. in Tokyo.
- Topix index rose 0.3%.
- Australia’s S&P/ASX 200 Index rose 0.7%.
- South Korea’s Kospi index added 0.6%.
- Hang Seng Index fell 0.1%.
- Shanghai Composite Index was little changed.
- S&P 500 futures rose less than 0.1%. The S&P 500 Index advanced 0.8%.
- The yen was at 109 per dollar.
- The offshore yuan traded at 7.0255 per dollar, up 0.1%.
- The Bloomberg Dollar Spot Index was flat.
- The euro traded at $1.1015.
- The yield on 10-year Treasuries was at 1.76%.
- Yields on Australia’s 10-year bonds fell one basis point to 1.08%.
- West Texas Intermediate crude was little changed at $57.98 a barrel.
- Gold was little changed at $1,454.80 an ounce.