INSUBCONTINENT EXCLUSIVE:
Authors: TheIndianSubcontinent News AgencyTOKYO: US stock futures edged up and Australian shares hit seven-week highs on Tuesday after the
United States postponed the imposition of steel and aluminium tariffs on Canada, the European Union and Mexico, and offered permanent
exemptions for several other allies.
Spread-betters also expected Britain's FTSE to creep ahead in opening trade.
Still, uncertainty over
an expanding trade dispute between the United States and China as well as worries that Washington may abandon a 2015 international nuclear
deal with Iran kept investors on edge
A high-level US trade delegation will be in Beijing for meetings later this week.
SP mini futures ticked up 0.2 per cent, erasing an earlier
loss of 0.2 per cent.
Japan's Nikkei rose 0.2 per cent while Australian shares gained 0.6 per cent, hitting their highest level since
mid-March.
MSCI's dollar-denominated index of Asia-Pacific shares outside Japan was down 0.1 per cent though only Australia and New
Many markets in Europe and Latin America will be closed on Tuesday as well for public holidays.
US shares lost steam late on Monday as
worries about rising costs for companies kept investors on edge, despite solid corporate earnings and strong economic data.
Analysts expect
SP500 companies to report 24.6 per cent growth in profits in the January-March quarter, according to Thomson Reuters data.
Yet rising US
bond yields and commodity prices pointed to higher costs down the road, with concerns about trade frictions and rising tension in the Middle
East seen as potentially amplifying the cost challenge.
An earnings announcement due later on Tuesday from Apple , the world's largest
company by market capitalisation, is attracting close attention, given speculation the sales of its flagship iPhone X have been
sluggish.
"Earnings have been really strong so far
Microsoft and Amazon had a bumper quarter
The only concern has been Apple, which has been said to be lacklustre
Hopefully, unless they come up with downbeat guidance, the market may take it in stride," said Hirokazu Kabeya, chief global strategist at
Daiwa Securities.
The market got a little relief when the United States decided to postpone the start date for steel and aluminium tariffs
against the European Union, Canada and Mexico to June.
The United States also reached agreements in principle on tariffs with some other
countries, including Australia and Brazil.
The news, first reported by the Wall Street Journal, lifted worries the exemptions would expire
on Tuesday, easing investors' worst fears.
"Markets are kind of expecting the Trump way of negotiation to continue
So I do not think markets are overly concerned about them at this point," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset
Management.
In the currency market, the euro traded at $1.2078, not far from 3 .5-month low of $1.2055 touched on Friday, after
weaker-than-expected German retail sales figures.
Although the data is known to be volatile and is often revised, it added to recent signs
that Germany's economy could be losing some momentum after last year's surprisingly strong growth.
The dollar has been supported against
many other currencies thanks to the relative strength of US economy and its yield advantage.
The Federal Reserve is expected to keep
interest rates on hold at its two-day policy meeting starting later on Tuesday, with a June hike already priced in.
The British pound stood
at $1.3753, having hit a two-month low of $1.3715 on Monday, as recent data suggested a rate hike by the Bank of England this month, once
almost seen as a certainty, could be delayed.
The dollar changed hands at 109.25 yen, near Friday's 2.5-month high of 109.54.
The
Australian dollar stood at $0.7540, near Monday's 4.5-month low of $0.75255 after the Australian central bank kept its policy on hold as
expected.
Oil prices held firm near 3.5-year highs after Israeli Prime Minister Benjamin Netanyahu stepped up pressure on the United States
to pull out of an international nuclear deal with Iran, presenting what he said was evidence of a secret Iranian nuclear weapons
programme.
Some intelligence experts and diplomats said he did not seem to have presented a "smoking gun" showing that Iran had violated the
agreement and Iran dismissed Netanyahu's accusations, calling them propaganda.
But US President Donald Trump, who has threatened to pull
the United States out of the international deal unless it is renegotiated by May 12, repeated his criticism of the deal after Netanyahu's
presentation, suggesting he backed the Israeli leader's remarks.
The White House said on Monday that the information provided by Israel on
Iran's nuclear programme provides "new and compelling details".
US crude futures traded up slightly at $68.72 per barrel, not far from
last month's peak of $69.56, its highest level since late 2014.
Brent crude futures were $74.84 per barrel, near the 3.5-year high of
$75.47 a barrel set last week.
