Global Markets News

Global equity markets gained and the dollar held steady on Thursday ahead of the G20 summit where a much-anticipated meeting of U.S. President Donald Trump and Chinese President Xi Jinping may lead to a truce in the U.S.-China trade war.

* Xi to present Trump with terms for trade war resolution -WSJ

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* Kudlow says U.S. may move ahead on additional China tariffs

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Global equity markets gained and the dollar held steady on Thursday ahead of the G20 summit where a much-anticipated meeting of U.S. President Donald Trump and Chinese President Xi Jinping may lead to a truce in the U.S.-China trade war.

British Prime Minister Theresa May will meet Saudi Crown Prince Mohammed bin Salman on Saturday to discuss the need for de-escalation in the Gulf after tensions rose because of a U.S.-Iran dispute over the country's nuclear deal, May's spokeswoman said.

U.S. activist hedge fund Elliott Management announced on Thursday it had taken a 2.1% stake in German agrichemicals and pharma company Bayer

The dollar held steady against most major currencies on Thursday as traders moved to the sidelines in advance of this weekend's G20 summit whe

A sharp rebound in flows to China and other emerging markets could signal investors expect a benign outcome to the trade row between the world's two largest economies, the Institute of International Finance (IIF) said on Thursday.

* Japan: Customs checks could hurt operations (Adds Peugeot on British car factory investment)

World shares and the dollar were left clinging to gains on Thursday amid conflicting reports on whether the United States and China will agree a truce on trade at a meeting of their leaders this weekend.

Turkey's government is reviving plans to transfer the central bank's 46 billion lira ($8 billion) in legal reserves to its deteriorating budget to shore it up and is also considering adjusting some tax measures as it battles recession, sources said.

* Media report says U.S., China have agreed to tentative truce

Hopes of a de-escalation in the U.S.-China trade dispute at the G20 summit this weekend boosted emerging market stocks on Thursday, with Asian equities leading gains, although currencies were mixed against a steady U.S. dollar.

* HSI financial sector sub-index up 1.5%; property sector up 1%

* Europe, Asia lifts MSCI world share index after 4 down days

Chinese shares ended higher on Thursday as hopes rose that the United States and China could reach an agreement to prevent further escalation in their trade war, ahead of a meeting between leaders of the two countries this weekend. ** At the close, the Shanghai Composite index was up 0.69% at 2,996.79, after two straight sessions of losses. ** The blue-chip CSI300 index was up 1.07%, with its financial sector sub-index higher by 1.24%, the consumer staples sector up 1.65%, the real estate index up 0.59% and the healthcare sub-index up 0.83%. ** The smaller Shenzhen index ended up 1.09% and the start-up board ChiNext Composite index was higher by 1.376%. ** U.S. President Donald Trump said on Wednesday that a deal with his Chinese counterpart Xi Jinping was possible this weekend, but that he was prepared to impose U.S. tariffs on virtually all remaining Chinese imports if the two countries continue to disagree. ** Supporting hopes for a trade war resolution, the South China Morning Post reported, citing sources, that the United States and China had agreed to a tentative truce ahead of the meeting between Xi and Trump. ** Helping to support sentiment, new official data showed that China's industrial companies posted better profits in May, boosted by improving sales and better margins. ** Shares of Kweichow Moutai Co Ltd climbed as much as 2.2% to a record 1,001 yuan, ending up 1.68%. Investors expect consumer firms to benefit from Beijing's measures to promote domestic consumption amid the trade war. An index tracking consumer staples firms gained 1.65%. ** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.87%, while Japan's Nikkei index closed up 1.19%. ** At 07:18 GMT, the yuan was quoted at 6.8752 per U.S. dollar, 0.07% firmer than the previous close of 6.8803. ** The largest percentage gainers in the main Shanghai Composite index were Cashway Technology Co Ltd, up 10.04%, followed by Shanghai Shenqi Pharmaceutical Investment Management Co Ltd, gaining 10.03%, and Anhui Golden Seed Winery Co Ltd, up by 10.02%. ** The largest percentage losers in the Shanghai index were China Sports Industry Group Co Ltd, down 10.02%, followed by Dawning Information Industry Co Ltd, losing 9.99%, and Hangzhou Cable Co Ltd, down by 9.77%. ** So far this year, the Shanghai stock index is up 20.2% and the CSI300 has risen 27.4%, while China's H-share index listed in Hong Kong is up 7.7%. Shanghai stocks have risen 3.38% this month. (Reporting by Andrew Galbraith; Editing by Subhranshu Sahu)

Japan on Thursday publicly cautioned the two candidates vying to replace Prime Minister Theresa May that Japanese investment could leave if they wrenched Britain out of the European Union without a divorce deal.