Asian stocks subdued, oil rises on US-Iran tensions

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TOKYO -- Asian shares were off to a cautious start on Monday as investors pinned their hopes on any signs of a thaw in Sino-US trade negotiations while oil prices firmed on worries over heightened ten

sions between the United States and Iran.

The Chinese state-run Xinhua news agency said on Sunday China's President Xi Jinping will attend the G20 summit in Japan this week, giving the first official confirmation of his attendance at a gathering where he is expected to meet U.S. President Donald Trump. Still, there remain doubts on whether the two sides could come to any meaningful agreement as the tensions have extended beyond tariffs, particularly after Washington put Huawei , the world's biggest telecoms gear maker, on a blacklist that effectively bans US firms from doing business with the company.

"Few investors would expect a dramatic progress when they are talking about entity lists, just days before a likely summit," Fujito said, adding that markets could slip back on disappointment after the summit. Tehran said the drone was spying over its territory while Washington said it was downed over international airspace.

Also potentially becoming a factor in the equation, Arab politicians and commentators greeted Trump's $50 billion Middle East economic vision with a mixture of derision and exasperation, although some in the Gulf called for it to be given a chance.

 

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