· Asian shares rise, euro at four-month peak on EU talks progress
Asian shares posted gains on Monday and the euro rose to four-month highs, as EU leaders appeared to make some headway after three days of haggling on a plan to revive their economies, even as coronavirus cases increased in many countries.
EU leaders are at odds over how to carve up a vast recovery fund designed to help haul Europe out of its deepest recession since World War Two, and what strings to attach for countries it would benefit.
Diplomats said it was possible that they would abandon the summit and try again for an agreement next month.
The euro rose above $1.1452 to its highest levels since March.
In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3%, reversing earlier in the day, with Chinese markets rising more than 2%.
· Japanese shares recoup losses; hopes of BOJ-buying support
Japanese shares recouped early losses to end higher on Monday as expectations that the central bank would purchase exchange-traded funds (ETFs) offset weak data that showed the country’s exports suffered a double-digit decline for the fourth month.
The benchmark Nikkei share average ended 0.09% higher at 22,717.48, clawing back from negative territory in early trade. There were 114 advancers in the Nikkei index against 105 decliners.
Traders speculated that the Bank of Japan would buy ETFs to support a weak morning session.
Investors remained cautious about rising coronavirus cases, as more than 14.38 million people have been reported to be infected by the virus globally and 601,961 have died, according to a Reuters tally.
The broader Topix added 0.2% to 1,577.03. (Reporting by Eimi Yamamitsu; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)
· China stocks rebound as regulators signal support for market
China stocks rose 3% on Monday, led by financial firms, after regulators moved to bolster the market by lifting equity investment for insurers and encouraging mergers and acquisitions among brokerages and mutual fund houses.
At the close, the Shanghai Composite index was up 3.11% at 3,314.15, while the blue-chip CSI300 index ended up 2.98%.
China’s banking and insurance regulator said it was raising the cap on how much the country’s insurers can invest in equity assets, an effort trying to bring more long-term funds into the capital market.
· European markets retreat as EU leaders fail to agree over recovery fund
European stocks pulled back Monday after European Union leaders meeting at the weekend failed to come to an agreement over a multibillion-euro recovery fund for the region to help it recover from the coronavirus crisis.
The pan-European Stoxx 600 slid 0.6% lower in early trade, with travel and leisure stocks shedding 2.3% to lead losses as all sectors and major bourses slid into negative territory.
European markets will be digesting the latest news from the region this weekend with EU leaders having failed so far to agree on the size and composition of a proposed 750 billion euro ($857 billion) recovery fund. Talks that started in Brussels on Friday over the fund, and the next long-term EU budget, continued over the weekend and are now expected to resume Monday.
Earnings come from Philips and Julius Baer Monday; there are no major data releases.
Reference: CNBC,Reuters
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