CANBERA (dpa-AFX) - Asian stocks rose broadly in cautious trade on Monday amid a backdrop of rising trade and geopolitical tensions. While hopes of Fed rate cuts and U.S.-China trade truce offered some support, tensions in the Middle East kept investors on edge.
U.S. President Donald Trump said on Sunday he was not seeking war with Tehran and is prepared to seek a deal to bolster Iran's flagging economy in an apparent move to defuse tensions.
But U.S. Secretary of State Mike Pompeo said 'significant' sanctions on Iran would be announced as early as Monday aimed at further choking off resources that Tehran uses to fund its activities in the region.
Chinese stocks finished modestly higher after state-run Xinhua news agency gave the first official confirmation of President XI Jinping's attendance at a gathering in Osaka this week, where he is expected to meet U.S. President Donald Trump.
The benchmark Shanghai Composite index rose 0.21 percent to 3,008.15 while Hong Kong's Hang Seng index closed 0.14 percent higher at 28,513.
Japanese markets fluctuated before ending on a positive note. The Nikkei average inched up 0.13 percent to 21,285.99, while the broader Topix index closed 0.12 percent higher at 1,547.74.
Exporters ended mixed as the dollar fell against the yen on bets the Federal Reserve would start lowering interest rates.
Tokyo Electron declined 1.7 percent and TDK Corp shed 0.8 percent while Sony advanced 1.8 percent and Honda Motor added 0.7 percent.
Australian markets finished modestly higher as investors looked ahead to this week's G20 summit. The benchmark S&P/ASX 200 rose 14.60 points or 0.22 percent to 6,665.40 while the broader All Ordinaries index ended up 11.20 points or 0.17 percent at 6,745.50.
Miners ended broadly higher showing modest gains despite a strong Aussie dollar. Australia's second-biggest lender Westpac Banking Group gained 0.4 percent after announcing it would overhaul the executive bonus scheme. The other three big banks rose between 0.3 percent and 0.6 percent.
Retirement home operator Aveo Group slumped 5.3 percent after a warning that weak property markets will dent its FY 2019 profits.
Grocery wholesaler Metcash plummeted almost 10 percent after its underlying earnings declined 3 percent due to lower food earnings and higher finance costs.
Coles Group lost 2.3 percent, while Wesfarmers and Woolworths ended little changed. Ausdrill soared 10.5 percent after its subsidiary won a five-year, A$800 million underground mining services contract from Khoemacau Copper Mining at a Botswana mine.
Seoul stocks closed higher on the back of gains in technology companies and automakers. The Kospi average ended marginally higher at 2,126.33. SK Hynix rose 1.5 percent and Hyundai Motor gained 1.4 percent.
New Zealand shares advanced, with the benchmark S&P/NZX 50 index ending up 61.02 points or 0.59 percent at 10,388.31, led by gains in consumer staple and energy stocks.
Singapore's Straits Times index was down 0.34 percent, snapping four straight sessions of gains. Indonesia's Jakarta Composite index was also down 0.4 percent after the release of trade data.
U.S. stocks ended modestly lower on Friday after the Commerce Department barred five additional Chinese companies from buying U.S. components without approval.
The Dow Jones Industrial Average and the S&P 500 slid around 0.1 percent while the tech-heavy Nasdaq Composite shed 0.2 percent.
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