Asia stocks welcome trade talks, euro on defensive

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Asian shares on Wednesday gave a guarded welcome to hints of progress in the Sin...

SYDNEY - Asian shares on Wednesday gave a guarded welcome to hints of progress in the Sino-U.S. trade saga, while the dollar hit two-month highs on the euro as investors wagered on a dovish outcome from the European Central Bank’s coming policy meeting.

White House economic adviser Larry Kudlow on Tuesday called it a good sign and said he expected Beijing to start buying U.S. agriculture products soon.MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.4% and Chinese blue chips climbed 1.2%. The news took a little of the gloss off a solid overnight session for Wall Street, where upbeat quarterly reports from Coca-Cola and United Technologies helped ease some concerns about earnings.Stocks are just a whisker away from all-time highs buoyed by expectations of a wave of policy stimulus by global central banks and a resulting sharp decline in bond yields.

The single currency was down near two-month lows at $1.1144, having shed 0.5% overnight, and hit a near seven-month trough on the yen at 120.45.

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