In This Article:
(Updates prices throughout, adds spreadbetters)
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Trump claims progress in trade talk with Xi
* Almost all Asian share indices in red for the year
* Biggest loser was China blue chips, India a rare gainer
* Bonds finishing strongly as market bets Fed is done
By Wayne Cole
SYDNEY, Dec 31 (Reuters) - Asian stocks rose on Monday as hints of progress on the Sino-U.S. trade standoff provided a rare glimmer of optimism in what has been a rough year-end for equities globally.
Survey data out of China, however, proved unhelpfully mixed with manufacturing activity contracting for the first time in two years even as the service sector improved.
Sentiment had brightened just a touch when U.S. President Donald Trump said he held a "very good call" with China's President Xi Jinping on Saturday to discuss trade and claimed "big progress" was being made.
Chinese state media were more reserved, saying Xi hoped the negotiating teams could meet each other half way and reach an agreement that was mutually beneficial.
The Wall Street Journal reported the White House was pressing China for more details of on how it might boost U.S. exports and loosen regulations that stifle U.S. firms there.
MSCI's broadest index of Asia-Pacific shares outside Japan added 0.6 percent, but were still down 16 percent for the year.
E-Mini futures for the S&P 500 firmed 0.7 percent. Spreadbetters pointed to a positive start for Europe with London's FTSE futures up 0.4 percent.
Japan's Nikkei was closed for a holiday having ended the year with a loss of 12 percent.
Across the region, the worst performer of the year was the index of Chinese blue chips, which lost a quarter of its value. The only major market in the black for the year was India, where the BSE was ahead by almost 6 percent.
The story was much the same across the globe, with the vast majority of the major stock indices in the red.
The S&P 500 is off almost 10 percent for December, its worst month since February 2009. That left it down 15 percent for the quarter and 7 percent for the year.
"Simply looking at the markets would suggest that the global economy is headed into recession," said Robert Michele, chief investment officer and head of fixed income at J.P. Morgan Asset Management.
"However, while we agree the global economy is in a growth slowdown, we don't see an impending recession," he added, in part because the Federal Reserve could provide a policy cushion.
"Already, commentary out of the Fed suggests that it is nearing the end of a three-year journey to normalise policy," argued Michele.