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Asia stocks wait on data, China-US talks

Asia stocks wait on data, China-US talks Wayne Cole, Reuters February 14, 2019 12:48am

The Asian stock markets has kicked off cautiously as investors hoped for progress in the latest China-US tariff talks while bracing for Chinese trade data expected to show further falls in exports and imports.

There was also some hope another US government shutdown would be averted as President Donald Trump edged toward backing a deal on border funding.

MSCI's broadest index of Asia-Pacific shares outside Japan was all but flat on Thursday, having just touched peaks last seen in early October.

Japan's Nikkei edged up 0.3 percent to its highest position in 2019, while E-Mini futures for the S&P 500 added 0.1 percent.

Chinese stocks were grabbing attention after the Shanghai blue chips index jumped two percent to levels last seen in late September.

With Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer in Beijing for talks, investors were daring to hope for good news.

Trump said on Wednesday the talks with China were "going along very well" as they try to resolve the tariff dispute ahead of a March 1 deadline.

"Investors are once again cautiously optimistic that progress will be made and realistically an extension of the tariff deadline will be seen as a good result," Nick Twidale, chief operating officer at Rakuten Securities, said.

"Longer term, only evidence of a solid deal going forward will dispel the investor caution and global growth fears that have been such a feature over the last year."

Data showing US consumer price inflation rose at the slowest annual pace in more than 18 months supported speculation the Federal Reserve could stay patient on rates, and helped lift Wall Street.

The Dow ended Wednesday up 0.36 percent, while the S&P 500 gained 0.30 percent and the Nasdaq 0.26 percent.

In currency markets, the improvement in risk appetite undermined the safe-haven yen and propelled the US dollar to its best levels of the year at 111.04.

The euro took a hit of its own from dire data on European industrial output.

Sterling was also on edge at $1.1846 ahead of another parliamentary vote on British Prime Minister Theresa May's Brexit plan.