SYDNEY – Asian shares paused near 19-month peaks on Monday ahead of the expected signing on a Sino-US trade deal, though talks on a phase two package are likely to drag on for months.
MSCI’s broadest index of Asia-Pacific shares outside Japan barely budged, having hit the highest since mid-2018 last week.
Japan’s Nikkei was closed for a holiday after falling sharply early last week due to Middle East tensions, only to rally almost a thousand points when the two countries stepped back from hostilities.
E-Mini futures for the S&P 500 edged up 0.1 percent, to be just off all-time highs.
The main event of the week will be the signing of the Phase 1 trade deal between the United States and China on Wednesday. The Trump administration has invited at least 200 people to the White House for the ceremony. “A calmer geopolitical backdrop and the signing of the US-China phase one agreement is, on balance, favorable for global growth,” said Joseph Capurso, an FX strategist at CBA.
“However, the 86-page phase one agreement has not yet been made public. There are doubts how comprehensive the deal is, and whether the agreement will be implemented in full by both governments,” he added. (Reuters)
