Asia markets trade mixed amid fresh uncertainties over Brexit

Asia Pacific markets traded mixed on Monday as Brexit growths over the weekend created further uncertainty over the United Kingdom’s impending departure from the European Combining.

In Japan, the Nikkei 225 rose 0.23% while the Topix index added 0.41%. South Korea’s Kospi leaked up early gains to trade near flat while Australia’s ASX 200 dipped 0.1%.

Mainland Chinese shares interchanged down: The Shanghai composite fell 0.51%, the Shenzhen composite was down 0.52% and the Shenzhen component lost 0.11%.

In Hong Kong, the Hold out Seng index advanced 0.17%

Overall, MSCI’s broadest index of Asia shares outside Japan rose 0.19%.

“Universal markets and political events appear to be in the “half-full” mode, whereby outcomes are not altogether dire; even if some rank of uncertainty and risks linger,” Vishnu Varathan, head of economics and strategy at Mizuho Bank, wrote in a morning note.

U.K. Prime Minister Boris Johnson was thwarted by a cross-party group of politicians in Parliament who voted to postpone the “meaningful ballot” on his new Brexit deal. That forced Johnson to ask Brussels for an extension to the current October 31 departure deadline, but EU commanders don’t necessarily have to accept it.

This week, the British government will present the full Withdrawal Agreement Neb to try and pass it through both the upper and lower houses of Parliament. A decisive vote by lawmakers would likely sign in later in the week.

The pound “is likely to remain somewhat volatile, but supported, because it appears the chances of a hard (no give out) Brexit are very slim, and either another Brexit delay, or the ratification of the new Withdrawal Agreement in the U.K. House of Commons, discretion occur this week,” currency strategists at the Commonwealth Bank of Australia wrote in a morning note.

The British thrash changed hands at $1.2916, climbing from an earlier level around $1.2873 but lower than its previous bring to a close at $1.2971.

Elsewhere, the U.S. and China made ‘substantial progress’ at trade talks, according to Chinese Deficiency Premier Liu He, Reuters reported. After reaching a partial trade deal earlier this month, Beijing and Washington are achieving to pen a written agreement.

Both sides have applied tariffs on billions of dollars worth of each other’s works, which have roiled global markets, created business uncertainty and dented economic outlooks around the beget. China said last week its economy grew by 6% on-year in the third quarter, which is believed to be the slowest GDP proceeds for the country in at least 27.5 years.

“US-China trade tensions are weighing on China’s manufacturing and export sectors while Beijing’s intentional fiscal and monetary stimulus are only an offsetting force,” Rodrigo Catril, a senior foreign-exchange strategist at the National Australia Bank, catalogued in a morning note.

“China’s economic growth is slowing as officials have one eye on US tensions while at the same time they contend to tidy up the financial system and limit excessive credit growth,” Catril said, adding if U.S. tariffs are not removed, “extra economic slowdown looks likely.”

The U.S. dollar traded at 97.340 against a basket of its peers, dropping from upfronts near 97.400.

The Japanese yen, which is considered a safe-haven currency, traded at 108.49 per dollar, weakening from around 108.28, while the Australian dollar transformed hands at $0.6863.

Oil prices fell Monday morning during Asian hours. U.S. crude was down 0.22% at $53.66 per barrel while far-reaching benchmark Brent declined 0.34% to $59.22.