SYDNEY (Reuters) - Asian share markets crept cautiously higher on Monday as investors awaited developments on proposed Sino-U.S. trade talks and the Chinese yuan rallied away from dangerous lows.
FILE PHOTO: An investor looks at an electronic board showing stock information at a brokerage house in Shanghai, China November 24, 2017. REUTERS/Aly Song/File Photo
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.4 percent, while Shanghai blue chips firmed 0.2 percent.
Moves were modest with Japan’s Nikkei off 0.3 percent in thin trade, while EMini futures for the S&P 500 edged up 0.05 percent.
The yuan reached its highest in a week at 6.8512 per dollar as Beijing acted to prevent a test of the psychologically important 7.0000 level.
Investors were also encouraged by news China and the United States will hold lower-level trade talks this month, offering hope that they might resolve an escalating tariff war.
Reports suggested the talks in Washington would take place on Aug. 21 and 22, just before $16 billion in new U.S. tariffs on Chinese goods take effect.
The U.S. Trade Representative’s office said on Friday it doubled the length of tariff hearings on the next $200 billion worth of Chinese goods to six days from the previously planned three due to overwhelming demand from companies to testify.
The hearings will be held Aug. 20-24 and on Aug. 27.
Dealers cited speculation the talks could set the stage for a summit between U.S. President Donald Trump and Chinese President Xi Jinping in November.
“Although such a timeline for agreement is totally unrealistic given how far apart the two sides are, the positive headlines should help sentiment to improve and a positioning unwind of USD is possible,” said analysts at JPMorgan.
“This would
