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Asian shares begin cautiously amid renewed rigidity between the US and China

© Reuters. FILE PHOTO: A man wearing a protective face mask after the coronavirus disease (COVID-19) outbreak walks in front of a stock exchange in front of a stockbroker in Tokyo

By Lawrence Delevingne

BOSTON (Reuters) – Asian stocks got off to a cautious start on Tuesday after a mixed session on Wall Street.

The Australian S & P / ASX 200 futures fell 0.05% in early trading.

{{178 | Japan's Ni () slipped 0.04%. The markets in Tokyo were closed on Monday for public holidays.

Hong Kong's Hang Seng Index Futures () () rose 0.43%.

"The very subdued start to the week in all time zones on Monday appears to be in Asia today," Ray Attrill, head of FX strategy at National Australia Bank (OTC :), told Reuters via email.

Attrill noted little progress in the next round of US fiscal stimulus, better stance between China and the US, and an easy calendar for Asian financial markets.

When asked on Monday whether he would respond to new Chinese sanctions against 11 U.S. citizens, including Republican lawmakers, President Donald Trump said he had already responded with sanctions against Hong Kong and Chinese officials last week.

Trump added, however, that the Phase 1 trade deal with China means "very little," which could set the stage for further tension when officials from both countries meet on Saturday to review progress over the first six months of the deal.

US stocks were mixed on Monday. The Dow was up 1%, the S&P 500 rose and the Nasdaq closed lower as investors expanded a rotation into value stocks of heavyweight technology-related names.

U.S. Congress leaders and Trump administration officials said Monday they were ready to resume negotiations on a coronavirus aid deal, but talks stalled as Democrats said Republicans had to get them in the middle to meet.

Also on Monday, China imposed sanctions on eleven U.S. citizens, including Trump Republican Party lawmakers, in response to Washington's sanctions against Hong Kong and Chinese officials accused of restricting political freedoms there.

The dollar gained, but analysts said the move is unlikely to be sustainable.

"US-China tensions continue to ease and support the dollar," Commonwealth Bank of Australia (OTC 🙂 strategists wrote in a note on Tuesday. "We doubt, however, that US-China tensions can ruin the established dollar's downward trend."

The rose by 0.18%, the euro () rose by 0.03% to USD 1.174.

The Japanese yen was up 0.01% against the greenback at 105.95 per dollar.

The Australian dollar remained at $ 0.715 against the greenback.

The Korean won lost 0.01% against the greenback at 1,185.73 per dollar.

Oil rose, supported by Chinese producer price data, rising energy demand and hopes of an agreement in the US on further economic stimulus related to coronaviruses.

rose 0.12% to $ 41.99 a barrel and was flat for the day.

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