- Asian shares surge on trade deal optimism
- Most markets in the Middle East closed higher on Tuesday
- Oil prices rise on OPEC’s decision to curb output
- Dollar, gold steady
Asian shares rose in early trading on Wednesday following optimism from the United States President on a trade deal with China, but gains were limited, as analysts were careful to not get too optimistic.
"Very productive conversations going on with China! Watch for some important announcements!" Trump said in a Twitter post.
SCI’s broadest index of Asia-Pacific shares outside Japan advanced 1 percent following the news. Japan's Nikkei rose 1.9 percent and Shanghai blue chips 0.4 percent.
“From the Huawei case, it is increasingly obvious that the China-US trade war is about the exchange of technology, and the development of advanced technologies by Chinese companies,” said analysts at ING in a note, according to a Reuters report.
“The truce will not address these issues. And therefore tension between China and U.S. will continue.”
Last week, Canadian authorities said they had arrested Huawei’s global chief financial officer in Vancouver, where she is facing extradition to the U.S., which added to tensions between the U.S. and China
Middle East markets
Dubai’s index added 1.4 percent on Tuesday, as real estate stocks pushed the index higher.
Emaar Properties gained 2.8 percent after saying it had started business development operations in China, while its unit Emaar Development increased 4.2 percent and Deyaar climbed 3.6 percent.
Abu Dhabi’s index rose 0.6 percent with Abu Dhabi National Energy surging 6.5 percent and National Bank of Umm Al Qaiwain gaining 6 percent.
Saudi Arabia’s bounced back 0.3 percent after dropping for five straight sessions, boosted by the banking sector. National Commercial Bank climbed 1.5 percent and Riyad Bank increased 2.1 percent.
The Qatari index slipped 0.7 percent as Middle East's largest lender Qatar National Bank lost 1 percent and bank Masraf Al Rayan dropped 1.2 percent.
Egypt’s blue-chip index EGX30 rose 1.5 percent as Commercial International Bank, added 3 percent, El Sewedy Electric gained 5.6 percent and Sixth Of October for Development and Investment (SODIC) added 3.4 percent.
Bahrain’s index ended the day mainly flat, while Oman’s index dropped 0.13 percent and Kuwait’s premier market index added 0.1 percent.
Oil prices rose in early trading on Wednesday, supported by OPEC’s decision to curb output.
International Brent crude oil futures were at $60.89 per barrel at 0212 GMT, up 69 cents, or 1.15 percent from their last close.
U.S. West Texas Intermediate (WTI) crude futures were at $52.25 per barrel, up 60 cents, or 1.2 percent.
“OPEC production curbs will stabilise the market,” ANZ bank said on Wednesday, according to a Reuters report.
The dollar was trading near one-month high on Wednesday.
The dollar index, which measures the greenback against a basket of six major currencies stood at 97.387 after rising overnight to 97.545, its highest since November 13.
Gold prices steadied in early day trading on Wednesday.
Spot gold inched up 0.1 percent to $1,244.40 per ounce, as of 0115 GMT.
U.S. gold futures rose 0.2 percent to $1,249.9 per ounce.
(Reporting by Gerard Aoun; Editing by Shane McGinley)
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