* World stocks at record high as Asian markets gain
* Safe-harbour yen drops to 7-month low
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Tom Westbrook
SINGAPORE, Jan 14 (Reuters) - Asian shares rose, China's
yuan jumped and safe-harbour assets slipped on Tuesday, amid
signs of goodwill between China and the United States, as the
world's two biggest economies prepared to sign a truce in their
bitter trade war.
The U.S. Treasury Department on Monday said China should no
longer be designated a currency manipulator - a label it applied
as the yuan dropped in August. Beijing, meanwhile, allowed the tightly managed currency to
climb to its highest point since July, after fixing the yuan's
trading-band midpoint at its firmest in more than five months.
China has also pledged to buy an additional almost $80
billion of U.S. manufactured goods over the next two years, plus
more than $50 billion extra in energy supplies, according to a
source briefed on a trade deal.
By afternoon the yuan was 0.3% firmer at 6.8740 per dollar,
world stocks .MIWD00000PUS sat at a record high and the
Japanese yen JPY= languished at an almost eight-month low.
Futures pointed to a positive start to Europe's trading day
STXEc1 and for Wall Street to hold on to Monday's record highs
ESc1 .
The moves come as a Chinese delegation arrived in Washington
ahead of Wednesday's signing of the Phase 1 trade agreement,
seen as calming a dispute that has upended the world economy.
"There have been a number of false starts," said Vishnu
Varathan, head of economics at Mizuho Bank in Singapore.
"The fact that this is really coming to the moment when the
rubber hits the road is the most tangible evidence of traction
in starting to resolve issues, that's what's driving optimism."
Japan's Nikkei .N225 added 0.7% to hit its highest in a
month. Australian shares rose by the same margin to close at a
record .AXJO .
Hong Kong's Hang Seng .HSI and Shanghai blue chips
.CSI300 also hit multi-month peaks.
Still, some said stocks could be exposed should the signing
process offer any surprises on the downside.
"The market appears to be fully pricing a signed agreement,"
said CMC Markets' chief strategist in Sydney, Michael McCarthy.
"It's buy the rumour, sell the fact ... Even a delay could
see an extremely negative reaction," he said.
United States Trade Representative Robert Lighthizer told
Fox Business late on Monday that the Chinese translation of the
deal's text was almost done. "We're going to make it public on Wednesday before the
signing," he said.
YEN, GOLD SLIP
In tandem with the rally, safe-harbour assets slid lower on
Tuesday. Gold extended Monday's fall to trade 0.7% weaker at
$1538.02 per ounce, its lowest in two weeks. GOL/
Ten-year Treasury note yields US10YT=RR rose to 1.8546%
compared with the U.S. close of 1.8480%. O/R
In currency markets, the yen weakened past the 110
yen-per-dollar mark while the yuan's strength helped lift
trade-exposed currencies across Asia. FRX/
Besides the trade deal, investors are also looking to U.S.
inflation data due at 1330 GMT - with consensus expectations for
it to hold steady at 0.2% in December - and the beginning of the
fourth-quarter U.S. company results season.
Big banks JPMorgan Chase & Co JPM.N , Citigroup Inc C.N
and Wells Fargo & Co WFC.N are due to report earnings before
market open on Tuesday. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
U.S. Treasury drops China currency manipulator label ahead of
trade deal signing White House plans US-China Phase 1 ceremony, still no final
deal text Dec yuan-denominated exports up 9%, imports up 17.7%
Lighthizer says nearly done with translation of China trade
deal businesses hold back, U.S. consumers seen boosting
big banks' profits ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>