Asia markets higher as Brexit negotiations kick off

Asian markets on Monday built on last week’s gains following another record on Wall Street, while the euro edged up on news that French President Emmanuel Macron’s party had secured a healthy majority in National Assembly elections.

The Dow in New York closed at a fresh all-time high thanks to a bounce in energy stocks, providing a positive lead for Asia, with a weaker yen helping Tokyo rally.

The dollar climbed above 111 yen Monday after Japan posted a surprise trade deficit for May. The Nikkei ended the morning session 0.6 percent higher.

Hong Kong added 0.9 percent and Shanghai was up 0.3 percent, while Seoul gained 0.6 percent and Sydney 0.5 percent. Wellington, Taipei and Manila were also well up.

With few drivers for business this week, eyes will be on the start of talks between Britain and the European Union on its extraction from the economic bloc.

The negotiations come after the ruling Conservative party lost its parliamentary majority in elections this month, weakening the government’s hand.

“How these negotiations evolve will likely hold the near term fate for the Pound,” said Stephen Innes, a senior trader at OANDA.

The pound, which tumbled in response to the election result, continues to struggle around two-month lows against the dollar.

AFP

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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