SINGAPORE—Asian stock markets were modestly higher early Monday, with sentiment getting a small boost after the Group of 20 nations agreed on a truce to defuse currency-market tensions.
In Tokyo, strong-yen concerns continued to hold back buyers, while the Sydney market braced for an announcement of a US$8.2 billion takeover bid for the ASX Ltd. from Singapore Exchange Ltd.
Japan's Nikkei Stock Average was up 0.6%,
Australia's S&P/ASX 200 was up 0.5% and South Korea's Kospi Composite was 0.9% higher. New Zealand markets were closed for a public holiday.
Dow Jones Industrial Average futures were up 27 points in screen trade.
Sentiment received a boost after a meeting of finance ministers from the G-20 nations in South Korea over the weekend vowed to avoid "competitive devaluation" of their currencies and resolved curb their external imbalances. Despite the absence of a specific multilateral deal, the uneasy truce aimed at defusing a "currency war" that's buffeted global markets appeared to lift risk sentiment.
"The G-20 went a step in the right direction toward easing global exchange rate tensions," Morgan Stanley said in a note to clients.
"That said, the overall communique is heavy on ambition but light on immediate action. In that sense, we do not think the market reaction will be substantial. Beyond any short-term positive reaction, continued basket weakness for [emerging market] currencies is likely," it added.
In TOKYO, shares were up modestly but worries over a persistently strong yen capped demand.
"If the U.S. economic data turn out disappointing this week, the yen may strengthen [against the dollar] on expectations the U.S. Fed will carry out larger-scale monetary easing," said Cosmo Securities strategist Toshikazu Horiuchi.
Fifteen of the 33 Topix subindexes were higher, with sentiment supported by expectations for brisk earnings to be announced by a string of Japanese companies this week.
Sumitomo Mitsui FG rose 1.7% after the Yomiuri Shimbun reported on Saturday that the firm is expected to post strong results for the April-Septeber period.
Yahoo Japan rose 3.1% after announcing a 6.8% on-year rise in July-September net profit. Toyota Motor was off 0.6% after the Yomiuri Shimbun reported in its Monday edition that the automaker will revise its forecast for the dollar-yen exchange rate for this fiscal year to 80.00 yen from 90.00 yen.
In SYDNEY, the market got a leg up on gains in the banking sector, with Macquarie advancing 2.9%, ANZ Bank up 1.1%, Westpac Bank up 1.3% and Commonwealth Bank of Australia 0.9% higher.
Resources plays were mixed; BHP Billiton was off 0.1%, Rio Tinto rose 0.9% and Newcrest Mining advanced 0.9%.
In SEOUL, auto makers and shipbuilding stocks were supporting the market although weakness in tech plays restrained gains.
Hyundai Motors was up 0.9%, Kia Motors added 3.8% and Hyundai Heavy Industries rose 2.9%.
