Friday, 17 August 2018
Asian shares gain on U.S.-China trade talks, lira recovers
Asian shares won a modest reprieve on Friday after China and the United States agreed to hold their first trade talks since June next week and as the Turkish lira extended gains from its record low earlier this week.
In U.S. markets on Thursday, the Dow Jones Industrial Average rose 1.58 percent and the S&P 500 gained 0.79 percent. The Shanghai composite index rose 0.16 percent in early Friday trade after ending down 0.66 percent at 2,705.19 on Thursday, just 0.03 point above a 2-1/2 year closing low set on Aug. 6.
In the currency market, the lira bounced back to 5.815 per dollar, up almost 25 percent from its record low of 7.2400 hit early on Monday, despite threats of more sanctions from Washington. It gained some support from the announcement late on Wednesday of a Qatari pledge to invest $15 billion in Turkey. The dollar index, a measure of the greenback’s strength against a basket of six major peers, was steady at 96.647.
Oil prices were on the defensive, on a weakening outlook for crude demand despite their gains on Thursday thanks in part to a recovery in global shares. Brent crude oil futures fetched $71.36 a barrel, down 0.1 percent in Asia on Friday after a 0.69 percent rise the previous day. They are on course to log the seventh straight week of losses.
Source : Reuters