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GLOBAL MARKETS-Asian shares rise on China's policy easing, trade deal hopes

Published 01/02/2020, 10:13 AM
Updated 01/02/2020, 10:16 AM
GLOBAL MARKETS-Asian shares rise on China's policy easing, trade deal hopes
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* MSCI Asia ex-Japan +0.35%
* China blue-chips jump after PBOC announces RRR cut
* Trump says Phase 1 trade deal to be signed Jan. 15.
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Andrew Galbraith
SHANGHAI, Jan 2 (Reuters) - Asian shares kicked off the new
decade higher on Thursday, after global stocks ended the
previous one at record highs, and buoyed by Chinese markets
after Beijing eased monetary policy to support slowing growth.
Investors also cheered news that the United States and China
will sign a trade pact soon after a year of volatile
negotiations between the world's two largest economies.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was up 0.35% in morning trade after rising 5.6%
in December.
U.S. President Donald Trump said on Tuesday that Phase 1 of
trade deal with China would be signed on Jan. 15 at the White
House, though uncertainty surrounds details about the agreement.
Rising hopes for a resolution to the U.S.-China trade war
helped propel global equities to record highs late last year and
depress the value of the U.S. dollar.
MSCI's all-country world index .MIWD00000PUS of stock
performance in 49 nations touched an all-time high of 567.80 on
Dec. 27. It was last quoted at 565.46, off 0.41% from that peak.
In China, the blue-chip CSI300 index .CSI300 , one of the
world's best-performing indexes last year, was 1.34% higher in
early trade.
China's central bank on Wednesday that it would cut the
amount of cash that banks must hold as reserves, releasing
around 800 billion yuan in funds effective Jan. 6. "I think the monetary angle in terms of what it means for
the companies, is not that important," said Jim McCafferty, head
of Asia ex-Japan equity research at Nomura in Hong Kong.
"However for what it means for the consumer point of view,
then clearly if there's easy money and ... individuals can
borrow cheaply, repay debt quickly, then that of course is going
to help the economy and the companies."
McCafferty said he expects a memory up-cycle and new handset
development prompted by the rollout of 5G mobile technology
could help to lift tech-heavy markets like Korea and Taiwan this
year.
Australian shares .AXJO flicked between small gains and
losses, and were last up 0.2%. Seoul's Kospi .KS11 began the
year down 0.85%, while shares in Taiwan .TWII added 0.51%.
Markets in Japan are closed for a national holiday.
The gains in Asia follow a bullish end to the year on Wall
Street on Tuesday. The Dow Jones Industrial Average .DJI rose
0.27% to 28,538.44 and the S&P 500 .SPX gained 0.29% to
3,230.78. The Nasdaq Composite .IXIC added 0.3% to 8,972.60.

In currency markets on Thursday, the dollar continued to
weaken slightly against major peers as investors bet on a better
outlook for global growth and trade.
The dollar was 0.06% weaker against the yen at 108.64 JPY=
while the euro EUR= gained 0.11% to 1.1222.
The dollar index .DXY , which tracks the greenback against
a basket of six rivals, was little changed, rising 0.04% to
96.427.
U.S. crude CLc1 was up 0.36% to $61.28 and global
benchmark Brent crude LCOc1 rose to $66.24 per barrel,
building on a rise that gave oil its biggest annual gain in
three years in 2019. Gold, which has benefited from a weaker greenback, was up
0.18% on the spot market, fetching $1,519.64 per ounce.
XAU= GOL/


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