Hong Kong, China | Most Asian markets rose Monday as investors tentatively pick up cheap stocks, with focus on an expected meeting between Donald Trump and Xi Jinping at the weekend that will be watched for signs of a softening in the China-US trade war.

 

The broad gains came despite more hefty selling in energy firms after another collapse in oil prices on Friday, while the pound was flat against the dollar after European Union leaders approved a Brexit deal but which must be cleared by British MPs who mostly oppose it.
 

The positive mood comes at the start of a key week that sees a speech by Federal Reserve boss Jerome Powell and the release of the bank's last policy meeting minutes, before culminating in the G20 in Buenos Aires.
 

While the summit will focus on several global issues, the meeting between Trump and Xi will get the most attention with the economic superpowers engaged in a trade war just as global growth starts to stutter.
 

But expectations for a deal to end the standoff are low.
 

"It would seem that President Xi and President Trump have every incentive to come to an agreement on trade issues, even if that agreement does not significantly change the status quo," said JP Morgan Asset Management chief global strategist David Kelly.
 

"However, perceptions are important on both sides. While some hold out the hope that an agreement in principle will be reached, it seems more likely that an agreement will have to wait for more posturing on both sides."
 

Stephen Innes, head of Asia-Pacific trade at OANDA, called the meeting "possibly the best and last opportunity for the two leaders to share middle ground".

"The big question is are we going to see Trump the 'deal maker' or Trump the 'trade warrior' who wants China to 'feel more pain'? Keeping in mind that betting against the latter has been a poor bet for traders this year."

- Oil makes inroads -
 

Still, the week has started on an upbeat note with Hong Kong jumping 1.4 percent and Tokyo 0.8 percent higher.
 

Singapore added 0.7 percent, Seoul, Taipei and Manila each jumped more than one percent, while there were also gains in Bangkok, Jakarta and Mumbai.

However, Shanghai, Wellington and Sydney declined.
 

Oil prices enjoyed a bounce but remain well beaten down after Friday's hammering, which saw WTI sink 7.7 percent and Brent more than six percent, putting them at lows not seen for more than a year.
 

The commodity has plunged by about a third from its four-year highs touched at the start of October owing to a range of issues, including a global slowdown, the trade row, rising supplies, softer-than-expected US sanctions on Iran, a stuttering China and strong dollar.
 

The retreat comes ahead of a meeting of the Organization of the Petroleum Exporting Countries on December 6.
 

"People are really reacting to a double whammy of both supplies and inventories going up at the same time that demand seems to be cooling down," Tamar Essner, an analyst at Nasdaq in New York, said. "Oil is getting hit from both sides."
 

The losses in crude prices have battered energy firms over the past two months, and they continued to fall Monday.

Hong Kong-listed PetroChina fell two percent, while Sinopec was 0.1 percent off. Inpex dropped 2.4 percent in Tokyo and Woodside Petroleum sank 2.3 percent in Sydney.

On currency markets, the pound was barely moved against the dollar as British Prime Minister Theresa May faces an uphill struggle pushing through her draft Brexit deal, with MPs on both sides against it.
 

May has staked her political future on the agreement, saying rejection would leave Britain back at square one, while her failure would likely lead to the toppling of the government, fuelling fresh uncertainty and hitting the sterling.
 

EU leaders have said the deal is the best possible one Britain could hope for, meaning a rejection of it will more than likely see the country crash out of the bloc.

In Tokyo, Mitsubishi was up more than three percent as executives at the car firm met to sack Carlos Ghosn as chairman over alleged financial misconduct. Nissan, which fired him last week, was 1.8 percent higher.
 

- Key figures around 0710 GMT - 
 

Tokyo - Nikkei 225: UP 0.8 percent at 21,812.00 (close)
 

Hong Kong - Hang Seng: UP 1.4 percent at 26,295.17
 

Shanghai - Composite: DOWN 0.1 percent at 2,575.81 (close)
 

Pound/dollar: UP at $1.2815 from $1.2805 at 1930 GMT Friday
 

Euro/dollar: UP at $1.1351 from $1.1331
 

Dollar/yen: UP at 113.20 yen from 112.85 yen
 

Oil - West Texas Intermediate: UP 83 cents at $51.25 per barrel
 

Oil - Brent Crude: UP $1.43 at $60.23 per barrel
 

New York - Dow Jones: DOWN 0.7 percent at 24,285.95 (close)
 

London - FTSE 100: DOWN 0.1 percent at 6,952.86 (close)
 

-- Bloomberg News contributed to this story --
 

dan/aph
 

© Agence France-Presse

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