Asian shares ushered in the week on a mixed note, with volumes being trimmed down as traders count down and take a breather for the busy holiday break.
In Tokyo, equities have improved little and declined in Melbourne, Seoul, and Shanghai. After posting a record high Friday, S&P 500 futures were flat when the index capped its biggest weekly rise since September.
In more than a year, the U.S. yield curve remains close to its steepest, underscoring how fears about deflation have receded. Oil prices in New York were pegged at $60 a barrel.
Since central banks around the world relaxed their monetary policy, major asset classes are collectively on track for the best returns in a decade this year.
Trade tensions have eased ahead of the year-end, calming the nerves of investors: the Chinese government said it would slash import tariffs on certain goods, and the first step of the China-US trade deal was scheduled for signing in January.
"There's reason to say the fundamentals are turning, but we haven't seen any confirmation in prices or data yet," said Kyle Rodda, an analyst at IG Markets Ltd. on Bloomberg TV.
After seeing his worst week in more than two years, the pound is straddling at the $1.30 region. Prime Minister Boris Johnson has renewed hard-Brexit fears with an accelerated timetable for signing a European Union trade deal.
Oil in the world market suffered losses as Kuwait announced an agreement with Saudi Arabia to renew crude production along its border.
For this week, here are some things to watch:
- U.K. Prime Minister Boris Johnson is hosting a meeting with Japanese Prime Minister Shinzo Abe and South Korean President Moon Jae-in in Chengdu on Tuesday, focusing on trade.
- Most stock markets are closed starting Wednesday for Christmas. In Europe, Germany, Canada, and the Netherlands, markets are also closed on the 26th of December.
- Retail sales and industrial production in Japan are planned for Friday. China's manufacturing income report is due on Friday.
Meanwhile, the Stocks Topix index dropped 0.1 percent at the break in Tokyo. Australia's S&P/ASX 200 index was down 0.4 percent. South Korea's Kospi index fell 0.3 percent. Hong Kong's Hang Seng Index retreated 0.1 percent and Shanghai's Composite Index plunged 0.7 percent.
In currencies, the Japanese yen traded at $109.41 per US dollar. The offshore yuan stood at $7.0066 per USD while the euro stood at $1.1080.
