Asian shares were almost unchanged in early Friday trading as investors held back amid trade tensions, weaker earnings signals and concern over global growth.
A draft agreement between Britain and the European Union on future relations offered some support, but sentiment stayed cautious after disappointing corporate results in Europe pointed to pressure on profits.
Trading was thin because U.S. markets had closed overnight for Thanksgiving and Japan was shut for a holiday. The MSCI index of Asia-Pacific shares outside Japan rose 0.1 percent in early trade.
Australian shares gained 0.23 percent, while Seoul's Kospi was flat. U.S. equity futures also pointed lower, with S&P E-mini futures down 0.24 percent at 2,642.75.
European stocks had already come under pressure on Thursday after a run of weak earnings reinforced fears that global profit growth may be peaking. Those results added to concerns that trade disputes, slowing investment and weaker growth were keeping markets under strain after a sharp October selloff.
In currency markets, the pound held steady at $1.2878 after rising more than 1 percent on Thursday on news of the draft Britain-EU agreement, which sketches a close post-Brexit relationship. The deal followed a draft treaty last week that set out the terms of Britain's departure from the EU in March.
Analysts at National Australia Bank warned that the political process still carried major risks. “After EU leaders are expected to rubber stamp this political declaration alongside the withdrawal agreement at a summit on Sunday, the ‘meaningful vote’ in the UK Parliament is likely in the second week in December. It would be far too optimistic to declare victory on a deal yet,” they said in a note to clients.
The euro eased to $1.1402, while the dollar rose 0.03 percent against the yen to 112.96.
In bond markets, the yield on benchmark 10-year U.S. Treasury notes climbed to 3.0646 percent from 3.061 percent before the Thanksgiving break. The two-year yield, which is closely watched for signals on Federal Reserve rate expectations, was little changed at 2.816 percent.
Commodity markets were also under pressure. U.S. crude fell 1.06 percent to $54.05 a barrel as inventories climbed to their highest level since December, deepening worries about a global supply glut. Spot gold edged up 0.07 percent to $1,227.54 an ounce.
The report was published in 2018.
