* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* MSCI ex-Japan a shade weaker, Chinese markets resume buying and selling
* U.S.-China trade talks to dominate narrative this week
* U.S. border deal talks collapse, gov’t shutdown looms
* close to six-week highs on protected haven flows
By Swati Pandey
SYDNEY, Feb 11 (Reuters) – Asian shares began the week on the backfoot on Monday as worries about international progress, U.S. politics and the continued Sino-U.S. tariff warfare stored buyers cautious, whereas the safe-haven dollar held close to a six-week prime towards main currencies.
MSCI’s broadest index of Asia-Pacific shares outdoors Japan was a tad weaker after it was toppled from a four-month prime on Friday.
Trading volumes are anticipated to be skinny with Japan on public vacation, whereas Chinese markets reopen after a week-long break for the Lunar New Year vacation.
World stocks ended final week in the purple amid uncertainty about international financial progress and trade tensions, posting their first weekly drop this yr.
Still, Wall Street’s essential fairness indexes recouped losses late on Friday, with the benchmark S&P 500 ending marginally constructive and the Nasdaq including zero.14 %. The Dow Jones Industrial Average fell zero.25 %.
Investors are wanting ahead to trade talks this week with a delegation of U.S. officers touring to China for the subsequent spherical of negotiations.
Of current concern to markets was the collapse in talks between U.S. Democrat and Republican lawmakers over the weekend amid a conflict over immigrant detention coverage, elevating fears of one other authorities shutdown. improvement comes in the wake of different news headlines that markets have needed to course of since late final week. These embrace a pointy downgrade to euro zone progress this yr and subsequent and U.S. President Donald Trump’s declaration that he had no plans to satisfy with Chinese President Xi Jinping earlier than a March 1 deadline to realize a trade deal. might be the large space of danger – the U.S. continues to be on a wholesome monitor however China stabilisation is extra hope than actuality in the meanwhile whereas European momentum continues to melt,” JPMorgan (NYSE:) analysts stated in a observe.
“Investors have lots to be nervous about, together with the continued progress softness in Europe and the danger this drags the opposite main geographies down with it,” they added.
“But U.S. trade insurance policies should not be excessive on the listing, trade rhetoric will keep an issue although.”
Markets will intently watch earnings from main U.S. corporations together with Coca-Cola (NYSE:) Co KO.N , PepsiCo Inc , Walmart (NYSE:) Inc WMT.N , Home Depot Inc (NYSE:) HD.N , Macy’s Inc M.N and Gap Inc (NYSE:) GPS.N for additional clues concerning the well being of the buyer sector.
Analysts now anticipate first-quarter earnings for S&P 500 corporations to say no zero.1 % from a yr earlier, which might be the primary such quarterly revenue decline since 2016, in response to IBES knowledge from Refinitiv.
In foreign money markets, the greenback held close to a six-week excessive round 96.665 towards a basket of currencies, and had its strongest weekly achieve in six months, as merchants piled into the dollar in a safe-haven transfer. euro was barely weaker at $1.1321 whereas sterling down zero.1 % at $1.2933.
The Australian greenback AUD=D3 hovered close to one-month lows after the nation’s central financial institution shifted away from a earlier tightening bias to say charges might now go in both path. was final at $zero.7092 after going as deep as $zero.7060 on Friday.
Oil costs held close to current ranges with good points capped by considerations about slowing international demand. crude CLcv1 was 13 cents weaker in early Asia at $52.57 per barrel whereas LCOcv1 had settled at $62.06 on Friday.
https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Sam Holmes)