TOKYO (Reuters) – Asian stocks closed higher on Monday, although investors were cautious as oil prices plummeted concerns over dark prospects for the global economy.
PHOTO PHOTO: Investors watch an electronic card showing stock exchange information at a brokerage house in Shanghai, China, on April 21st 2016. REUTERS / Aly Song
Markets are also preparing for a crucial meeting between US and Chinese leaders at the end of the week, as trade tensions between economic superpowers have shown no signs of easing.
The broadest MSCI index of Asia-Pacific equities outside of Japan. The MIAPJ0000PUS rose 0.4%, driven by Taiwanese stock gains after local elections, while the Japanese Nikkei. N225 gained 0.6%.
In China, the Shanghai .SSEC composite index rose 0.3 percent.
On Wall Street, the United States lost ground on Friday, with the S & P 500.SPX benchmark which hit its lowest end in over six months as the energy sector was sold off as oil collapsed.
The S & P 500 .SPX benchmark fell 0.66% to end 10.2% lower than the closing record on 20 September, the second time it entered a 10% correction % after a defeat at the beginning of February.
US stock futures ESc1 rose 0.3 percent in Asian trade on Monday.
Oil prices have been trading near the lowest levels since October of last year, after selling 8% on Friday for the biggest weekly losses in nearly three years, with an increase in production in the United States that intensified fears of over-supply.
Until this month, both WTI and Brent futures fell more than 21%, in line with their biggest decline from October 2008, unless they recover part of those losses this week.
In trading on the first Monday, US CLC1 crude futures recovered $ 50.53 a barrel, slightly higher but not far from the Friday low of $ 50.15.
Brent LCOc1 crude futures come in at $ 58.99 a barrel, close to Friday's low of $ 58,41.
Oil problems also reflected anxiety over a trade war between the United States and China.
"The U.S.-China Summit is the biggest event for the rest of the year," said Nobuhiko Kuramochi, chief strategist of Mizuho Securities.
US President Donald Trump and his Chinese counterpart Xi Jinping are expected to hold talks in the margins of a G20 summit in Argentina later this month.
Unless otherwise agreed, US tariffs for $ 200 billion of goods will be brought to 25% next year by 10%, Kuramochi said.
It is likely that such an increase puts a brake on the global economy, which is already showing signs of cracks with companies cautiously looking at investments amid rising headwinds to gain growth.
A poll on Friday showed that business growth in the euro area was much weaker than expected this month as a slowdown in global economic momentum and a US-led trade war led to a sharp decline of exports.
Index IHS Markit & # 39; s Flash Composite Purchasing Managers for the euro area EUPMCF = ECI fell to 52.4 in November, the lowest since the end of 2014.
This put pressure on the euro. The single currency traded at $ 1.1335 =, little changed in Asia after a 0.6% decrease on Friday.
The yield on ten-year bonds in Germany also fell to 0.331%. DE10YT = TWEB is the lowest since the beginning of September.
The British pound has just moved to $ 1.2818 GBP = after the leaders of the European Union have signed a Brexit agreement on Sunday.
Markets are now assessing whether the agreement can overcome an irritable British parliament that is ready to vote before the next EU summit on 13-14 December.
The yen has changed hands to 112.91 of the dollar JPY =.
The dollar index against a basket of six major currencies stood at 96,908, not far from the 97,704 maximum of this year marked two weeks ago.
But it could lose momentum if policymakers at the Federal Reserve adopt a more prudent approach to the future tightening of politics. President Jerome Powell will speak on Wednesday as Vice President Richard Clarida's speech is scheduled for Tuesday. [FED/DIARY]
Assembly of Shri Navaratnam