In This Article:
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Share edge higher in risk-on mood
* Yen and Swiss franc on back foot in Asia
* Oil prices ease but inventories and OPEC meeting loom
By Stanley White
TOKYO, Nov 26 (Reuters) - Asian stocks rose on Tuesday as an apparent olive branch from Beijing in trade talks with Washington added to other recent signs of progress, fuelling a rally in Wall Street's main benchmarks to record highs.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2%. Australian shares were up 0.59%, while Japan's Nikkei stock index rose 0.78%.
The yen eased to a one-week low versus the dollar, while the Swiss franc traded near a six-week low against the greenback as the optimistic tone sapped demand for safe-haven currencies.
Oil prices gave up some gains in Asia in a sign that some investors remain cautious about the prospects for a lasting agreement to remove perhaps the biggest risk to the global economic outlook.
A quick resolution to the U.S.-China trade war is far from certain, because relations between the world's two-largest economies have often been acrimonious and negotiations have stalled many times before.
"The broad trend is the markets are looking for a deal because trade has been the biggest factor weighing on global growth and holding back confidence," said Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors in Sydney.
"We have a low interest rate environment that is supportive of equities. If we get better economic news and relief from geopolitical risks, equities could rally further next year."
Wall Street's three main stock averages closed at a record high on Monday, buoyed by hopes for a trade deal and by M&A activity in luxury goods and online trading.
Traders pointed to China's decision to increase punishments for intellectual property rights violations as a fresh concession to the United States in the drawn-out and volatile negotiations.
Investors were also encouraged by positive comments from U.S. President Donald Trump, Chinese President Xi Jinping and Chinese state-owned media about the chance for an imminent trade deal.
Also driving Wall Street higher was a burst of major acquisition activity with France's LVMH offer to buy U.S. jeweller Tiffany & Co and Charles Schwab Corp's purchase of U.S. discount brokerage TD Ameritrade Holding Corp.
However, in a sign of prevailing market nerves, U.S. stock futures fell 0.02% in Asia on Tuesday.
The United States has imposed tariffs on Chinese goods in a 16-month long dispute over trade practices that the U.S. government says are unfair. China has responded in kind with its own tariffs on U.S. goods.