ASIA UP , INVESTORS EYES ON G-20.

ECONOMY

On Friday , Indices in Asia edged higher as investors clung on to hopes that a highly anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping this weekend could lead to an easing of trade tensions.
The leaders of the G20 countries meet on Friday and Saturday in Osaka, Japan, but the most anticipated meeting is between Trump and Xi on Saturday.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.02%, following on from modest gains in global equity markets overnight. U.S. stock futures, the S&P 500 e-minis, were up 0.2%.
Japan’s industrial output rose for a second straight month in May, offering a much-needed sign that growth is holding up despite worries the world’s third-largest economy remains severely pressured by slower domestic and external demand.
Larry Kudlow said Thursday that Trump has agreed to no preconditions for the meeting, set to take place on Saturday at the G20 summit in Japan, and is maintaining his threat to impose new tariffs on Chinese goods.
Trade between Germany and Iran has collapsed under the impact of United States sanctions, data published by Funke newspapers showed, supporting Iran’s assertion that Europe is failing to help preserve the nuclear non-proliferation deal it signed.

U.S. yields had fallen on Thursday, driven lower by ebbing optimism over a Sino-U.S. trade deal.
Rising equity market indicators were accompanied by a minor pull-back in fixed income, with the yield on benchmark 10-year Treasury notes rising to 2.0192%, compared with a U.S. close of 2.005% on Thursday.
The two-year yield was also up, at 1.7469%, but remained near recent lows, reflecting near certainty that the Federal Reserve will cut benchmark interest rates in July.

The dollar index was virtually flat at 96.180.
USD/JPY awaits the G20 outcome with the mixed sentiment in the lead in keeping price in a tight range. The retreats below 108.00 signals that the descending channel in the daily chart remains in place.
The euro last traded at $1.1370, unchanged on the week. Euro Zone Consumer Price Index (CPI) may keep EURUSD afloat as the core rate of inflation is expected to pick up in June.
Sterling was unchanged at $1.2670, on course for a 0.6% weekly decline on uncertainty about who will be Britain’s next prime minister and on worries about whether the nation would be able to avoid a no-deal, chaotic exit from the European Union.

Oil prices were steady on Friday, with focus shifting to the G20 summit where a scheduled meeting between U.S. President Donald Trump and Chinese President Xi Jinping has stirred hopes that trade tensions could ease.
Brent crude futures were up 5 cents, or 0.08%, at $66.60 per barrel. U.S. West Texas Intermediate (WTI) crude futures were down 2 cents, or 0.03%, at $59.41 a barrel.