GLOBAL MARKETS-Asian stocks set for cautious gains on Sino-U.S. trade hopes

By Katanga Johnson
WASHINGTON, Aug 25 (Reuters) - Asian stock were set for a
choppy session on Wednesday, following a mixed Wall Street lead
as markets cheered signs of progress in U.S.-Sino trade
negotiations but remained cautious about the broader economic
outlook.
Top U.S. and Chinese officials reaffirmed their commitment
to a trade deal that had appeared on shaky ground because of
worsening bilateral ties following weeks of escalating tensions
between the world's two largest economies. The euro rose and gold prices fell as positive signals on
the Washington-Beijing trade front bolstered risk sentiment and
offset support for the metal from a weaker dollar.
Trading volume was typically low for late August and
investors await a speech by Federal Reserve Chairman Jerome
Powell on Thursday, when he is expected to address the U.S.
central bank's view on inflation and monetary policy.
"As the U.S. equity market continues to climb to all-time
highs with the usual suspects leading the way (e.g. Tech,
Communication Services and Amazon), we expect the momentum to
continue," said Chris Zaccarelli, chief investment officer at
Independent Advisor Alliance in Charlotte, North Carolina.
"As the Federal Reserve's liquidity has provided fuel for
the fire, the concentration of the top five largest stocks in
the S&P 500 index gives us some pause," Zaccarelli added.
Powell may signal a shift in the Fed's inflation target to
an average, which would allow inflation to rise more quickly
than in the past.
On Wall Street, trading was mixed with the S&P 500 .SPX up
0.36%, the Nasdaq Composite .IXIC adding 0.76%, both hitting
all-time closing highs. The Dow Jones Industrial Average .DJI , which has yet to
reclaim its February high, ended the session lower, however,
falling 0.21%.
A slide of 0.82% in Apple Inc. AAPL.O , whose market
capitalization of $2.15 trillion is greater than all the
components in the benchmark FTSE 100 .FTSE index in London,
initially kept stocks from rising.
A survey from the Conference Board showed U.S. consumer
confidence unexpectedly fell in August to hit a six-year low.

Australian S&P/ASX 200 futures YAPcm1 were down 0.55%,
while Japan's Nikkei 225 futures NKc1 were up 0.09%. Hong
Kong's Hang Seng index futures .HSI .HSIc1 were up 0.1%.
Emerging market stocks rose 0.59%.
Investors have also cheered signs researchers might be
closer to a treatment for coronavirus.
British drugmaker AstraZeneca AZN.L has begun trials of
its antibody-based drug for the treatment and prevention of
COVID-19, the latest development in a global race to combat the
pandemic. The dollar index =USD fell 0.274%, with the euro EUR=
down 0.03% to $1.183.
The Japanese yen strengthened 0.03% versus the greenback at
106.36 per dollar, while Sterling GBP= was last trading at
$1.3146, down 0.03% on the day.
Crude oil prices rose, supported by production cuts in the
U.S. Gulf Coast as Tropical Storm Laura was forecast to become a
major hurricane, while rising coronavirus cases in Asia and
Europe capped gains.
U.S. crude CLc1 recently rose 0.09% to $43.39 per barrel
and Brent LCOc1 was at $46.05, up 2.04% on the day.
Longer-term U.S. Treasury yields rose as traders moved into
riskier asset classes on reassurance that a U.S.-China trade
deal would continue. Yields on the benchmark 10-year Treasury
note US10YT=RR rose 0.6883%, from 0.682%.
Spot gold XAU= added 0.1% to $1,928.83 an ounce. U.S. gold
futures GCc1 % to $1,911.80 an ounce.

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