Asian stock markets were mixed on Monday as investors looked forward to U.S.-Chinese trade talks along with the Federal Reserve’s update on its U.S. interest rate perspective.
Benchmarks in Hong Kong and Seoul innovative, while Shanghai and Sydney fell. Japanese markets were closed for a vacation and India was shut for elections.
U.S. and Chinese officials hold additional negotiations this week ending a bruising tariff warfare on Beijing’s technology aspirations. Both sides say they are currently making progress, which has really helped to defuse anxiety that’s battered on global financial markets.
“Dealers will be watching for changes in its dovish perspective,” said Jeffrey Halley of OANDA at a report. “My guess is that these nerves have been misplaced, and the Fed will keep its powder dry with the optionality to reduce if necessary.”
Hong Kong’s Hang Seng index rose 0.7% to 29,819.83 along with Seoul’s Kospi advanced 1.2% to 2,204.57. New Zealand, Singapore and Jakarta also gained.
The Shanghai Composite Index dropped 0.1% to 3,083.08 and also Sydney’s S&P-ASX decreased 0.5% to 6,353.60. Taiwan also appeared.
Investors also looked ahead to manufacturing polls. China’s economic growth rate held stable in the quarter inducing optimism the nation’s downturn is bottoming out.
The most recent data, along with the Fed report, can give reasons to”claim optimism through a combination of data buoyancy,” said Vishnu Varathan of Mizuho Bank at a report.
“But equally, there are signs that optimism is stretched out,” he said. “Especially if China tempers stimulus, the Fed hesitates on additional easing and the details of a trade agreement reveal difficulty areas.”
In energy markets, benchmark U.S. crude fell 48 cents to $62.82 per barrel in electronic trading on the New York Mercantile Exchange. The contract plunged $1.91 on Friday to close at $63.30.
Oil prices increased during the first quarter following OPEC and Russia to restrict generation. Costs have grown after Washington announced it’ll stop waivers out of sanctions for states that import oil from Iran, such as Japan, India, China and South Korea.
Brent crude, used to price international monies, dropped 55 cents to $71.08 per barrel in London. The contract fell $2 the preceding session for $71.63.
In currency trading, the dollar gained into 111.72 yen in Friday’s 111.58 yen.