Asian Shares Rise On Trade Deal Hopes

(RTTNews) - Asian shares rose broadly in thin trade on Monday, with Japanese markets closed for a holiday.

Investors watched the latest trade developments, with U.S. Commerce Secretary Howard Lutnick saying he was confident the U.S. and the EU could reach a trade deal before August 1.

"That's a hard deadline, so on August 1, the new tariff rates will come in… Nothing stops countries from talking to us after August 1, but they're going to start paying the tariffs on August 1," Lutnick said in a television interview on Sunday.

The yen held firm as Japan's ruling coalition lost control of the upper house in an election on Sunday, further weakening Prime Minister Shigeru Ishiba's grip on power.

However, Ishiba announced he has no intention to step down, pledging to redouble efforts on economic diplomacy.

U.S. stock futures edged higher ahead of key earnings reports from major tech companies, with Tesla and Google parent Alphabet set to unveil their earnings results on Wednesday, followed by Intel on Thursday.

Investors also looked ahead to a busy week of U.S. housing market data and comments from central bankers, including Federal Reserve Chairman Jerome Powell at a banking conference, as Trump piles pressure on him over rates and renovations at the U.S. central bank's headquarters.

Gold prices rose on a weakening dollar as investors debated the Federal Reserve's next move and U.S. President Donald Trump reiterated that a 10 percent tariff would be imposed on any BRICS nation actively working to bypass the dollar in international trade.

Oil prices were marginally lower in Asian trade as investors weighed the prospect of increased supply from OPEC+ against new sanctions on Russia.

China's Shanghai Composite index climbed 0.72 percent to 3,559.79 as the People's Bank of China held the 1-year loan prime rate at 3.0 percent and 5-year LPR at 3.5 percent, as expected.

Hong Kong's Hang Seng index rose 0.68 percent to 24,994.14 after reports emerged that U.S. President Trump and Chinese leader Xi Jinping might meet ahead of the October APEC summit.

Seoul stocks rose notably, with big-cap tech shares pacing the gainers as foreigners continued their buying streak for the eighth consecutive session. The Kospi average jumped 0.71 percent to 3,210.81.

Tech giant Samsung Electronics gained over 1 percent, its chipmaking rival SK Hynix added 1.3 percent and leading battery maker LG Energy Solution rallied 2.6 percent.

Australian markets fell sharply after reaching a record high in the previous session. The benchmark S&P/ASX 200 fell 1.02 percent to 8,668.20, suffering its biggest fall since April amid broad-based selling.

The broader All Ordinaries index settled 0.89 percent lower at 8,926.90. South32 shares surged 4.5 percent after the diversified miner exceeded its full-year production guidance.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index ended up 0.63 percent at 12,961.51 after annual consumer inflation for the second quarter came in below economists' forecasts.

U.S. stocks ended narrowly mixed on Friday after reports emerged that President Trump is demanding a minimum tariff of between 15 percent and 20 percent in any deal with the EU irrespective even if a trade deal is arrived at.

Investors also reacted to upbeat economic data and Netflix's unimpressive revenue forecast. Data showed U.S. consumer sentiment rose to a five-month high in early July as expectations about the economy and inflation continued to improve.

The tech-heavy Nasdaq Composite inched up marginally to reach a new record closing high while the S&P 500 finished marginally lower and the Dow eased 0.3 percent.