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ASIA MARKETS / Resumption of trade talks spurred on

TOKYO / SHANGHAI (Dow Jones) - The majority of the stock markets in East Asia and Australia showed significant increases at the beginning of the week. There was particularly strong growth in Shanghai and Tokyo. However, the Kospi in South Korea jumped out of line. The trade was determined by the results of the meeting between US President Donald Trump and his Chinese counterpart Xi Jinping at the G20 summit in Japan over the weekend. There was no trading in Hong Kong due to the holiday.

In the trade conflict that has been stalled since May, both sides now want to resume negotiations. Although the US import tariffs currently imposed on Chinese goods are to be retained for the time being, the USA intends to refrain from further tariffs for the time being. Details on the further course of the talks were not given. According to the US President, the talks at the summit went "even better than expected". China and the US would now resume negotiations where they left off. However, the positions of the two countries have changed little since May, so how long it will take and whether an agreement will be reached at all remains unclear at first. On the other hand, the announcement came as a bit of a surprise that US companies should be allowed to supply the Chinese technology group Huawei again in the future, provided that the products concerned do not endanger the national security of the USA.

"After spending the past two months in a no-man's-land of stalled trade talks, investors are starting to react," said Stephen Innes of Vanguard Markets. The big question, however, is now whether the agreed ceasefire between Washington and Beijing will really hold, or whether history will repeat itself and the talks will sooner or later stall again.

Citi economist Cesar Rojas pointed out that a final trade deal would require a face-to-face meeting between both accountants. He sees the APEC meeting in Chile in November as a possible date for this. A state visit by the Chinese president to Washington in 2020 is also conceivable. A lot could happen until then, but Rojas expects the ceasefire to last until the end of 2019.

Shanghai and Tokyo much firmer - Seoul unchanged

The Shanghai stock exchange went up 2.2 percent. In Tokyo, the Nikkei-225 increased significantly by around 2.1 percent to 21,730 points and closed at an eight-week high. The index received a tailwind from the weaker yen, which made goods for export cheaper on world markets. Electronics values ​​in particular recorded significant increases. The last dollar was 108.37 yen. At the same time on Friday, it was still around for 107.67 yen. In contrast, the most recently published economic data from China and Japan did not play a major role.

The easing of US restrictions on Huawei products boosted chip values. TDK and Tokio Electron rose 7.0 and 4.8 percent, respectively, in Japan. In Taiwan, Largan Precision jumped the daily limit of 10 percent, Taiwan Semiconductor gained around 4 percent.

With an index level at the previous day's level, however, the Kospi in Seoul stepped out of line after Japan tightened its export controls for goods to South Korea and thus further fueled the dispute between the two countries. Materials for semiconductors and smartphones are affected, which is likely to put a strain on the supply chains for producers. Seoul has announced that it will respond to this. The index heavyweight Samsung fell 0.9 percent. LG displays yielded around 2 percent.

The gold price fell sharply in Asian trading, which was due on the one hand to the stronger dollar, but also to low demand for safe investments. The troy ounce last cost 1,384 dollars, around 30 dollars less than at the end of the previous week.

Oil price rises

After Russia and Saudi Arabia announced at the weekend that they would extend the previously agreed oil production cut by six to nine months, oil prices rose significantly. The price for the globally traded European variety Brent rose recently by 2.9 percent to 66.61 dollars per barrel. As a result, oil values ​​were significantly firmer in the entire region. In Japan, for example, Inpex rose by 2.2 percent. In Sydney, Santos and Oil Search gained 1.6 and 1.1 percent, respectively.

Japan Display surrendered initial premiums as it progressed. The gains were triggered by reports that Hong Kong-based hedge fund Oasis agreed to invest $ 150 to 180 million as part of a rescue program for the troubled company.

=== Index (stock exchange) last +/-%% YTD end S & P / ASX 200 (Sydney) 6,648.10 + 0.44% + 17.74% 08:00 Nikkei-225 (Tokyo) 21,729.97 +2, 13% + 8.57% 08:00 Kospi (Seoul) 2,129.74 -0.04% + 4.35% 08:00 Shanghai Comp. 3,044.90 + 2.22% + 22.09% 09:00 Hang-Seng (Hongk.) 28,542.62 -0.26% + 10.45% 10:00 Taiex (Taiwan) 10,895.46 +1.53 % + 12.01% 07:30 Straits-Times (Sing.) 3,368.39 + 1.41% + 8.24% 11:00 KLCI (Malaysia) 1,681.34 + 0.55% -1.09% 11 : 00 BSE (Mumbai) 39,653.03 + 0.66% + 9.37% 12:00 FOREIGN EXCHANGE last +/-% 00:00 Fri, 9:40% YTD EUR / USD 1.1324 -0.4% 1 .1367 1.1392 -1.2% EUR / JPY 122.75 -0.2% 123.05 122.63 -2.4% EUR / GBP 0.8939 -0.1% 0.8951 0.8990 - 0.7% GBP / USD 1.2669 -0.2% 1.2699 1.2673 -0.6% USD / JPY 108.41 + 0.2% 108.24 107.65 -1.2% USD / KRW 1158.86 + 0.2% 1156.53 1154.59 + 4.0% USD / CNY 6.8450 -0.3% 6.8668 6.8664 -0.5% USD / CNH 6.8457 + 0.2% 6.8297 6.8685 -0.4% USD / HKD 7.8097 -0.0% 7.8112 7.8082 -0.3% AUD / USD 0.6998 -0, 5% 0.7031 0.7016 -0.7% NZD / USD 0.6700 -0.3% 0.6722 0.6711 -0.2% Bitcoin BTC / USD 10,811.25 -3.9% 11,250.75 11,343.00 + 190.7% CRUDE OIL last VT-Settl. +/-% +/- USD% YTD WTI / Nymex 60.23 58.47 + 2.9% 1.72 + 26.5% Brent / ICE 66.64 64.74 + 2.9% 1.90 + 20.7% METALS last previous day +/-% +/- USD% YTD Gold (spot) 1,386.02 1,409.47 -1.7% -23.46 + 8.1% silver (spot) 15.21 15, 32 -0.7% -0.11 -1.8% platinum (spot) 834.13 835.50 -0.2% -1.37 + 4.7% copper future 2.73 2.71 +0 .9% +0.02 + 3.4% ===

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(END) Dow Jones Newswires

July 01, 2019 04:02 ET (08:02 GMT)

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