Top-level US-China trade talks are scheduled to resume Thursday and Friday, when Chinese Vice-Premier Liu He meets US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in Washington. Markets have been quick to swing on any hint of movement in the U.S.
US crude rose 0.11% to $52.87 per barrel and Brent was last at $58.51, up 0.24% on the day.
USA stock futures fell, the yen edged up and the yuan slipped in early trading Monday after a report that China may be increasingly reluctant to agree to a broad trade deal with the Trump administration.
USA stocks fell Monday, pressured by a streak of disappointing economic data from around the world.
On the mainland, markets remained closed for yet another session for a public holiday, as did those over in the special administrative region of Hong Kong.
"It looks as if we are back to considering the merits of a narrow trade deal today, as news stories break suggesting that China is not looking to make a broader trade deal along the lines it is reported the USA is seeking", noted ING's Asia Pacific chief economist and head of research Robert Carnell. Some of those fears were allayed on Friday when a government jobs report showed that employers are still adding jobs at a healthy clip and that the national unemployment rate dropped to a five-decade low.
U.S. President Donald Trump has said the tariff increase will take effect if no progress is made in the negotiations.More news: PS4 Firmware Update 7.00 Launches This Week
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The S&P 500 posted 10 new 52-week highs and 1 new low; the Nasdaq Composite recorded 30 new highs and 91 new lows.
The Nikkei 225 lost 34.95 points, or 0.2%, to 21,375.25. Australia's S&P/ASX 200 rose 0.7% to 6,563.60, while South Korea's Kospi was little changed, inching up less than 0.1% at 2,022.50. Sentiment got a boost on speculation that China is ready to do a deal, while pessimists focused on a report that senior Chinese officials have indicated the range of topics they're willing to discuss at upcoming talks has narrowed considerably. He then touted the strength of the USA economy even as the tariff battle continues with China.
"Recently some of the statements coming out of Beijing have been more and more positive", Kudlow told Fox news.
ENERGY: Benchmark U.S. crude added 64 cents to $53.45 a barrel.
Other trade-exposed currencies such as the Australian dollar AUD=D3 and the Korean won KRW= also fell, with the former losing a quarter percent and the won down 0.4%. The euro rose to $1.0983 from $1.0979.