Asian shares rally, oil drops

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.5% higher

Asian shares rallied on Friday, while oil prices dropped following new U.S. sanctions on Russian suppliers.

Nikkei share gauge climbed before a speech where the new prime minister is expected to talk about stimulus.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.5% higher in early trade. Nikkei stock index gained 1.2%.

In Japan, core consumer prices added 2.9% year-on-year in September, data showed on Friday, staying above the central bank’s 2% target and keeping alive market expectations of a near-term interest rate hike.

Japan’s new Prime Minister Sanae Takaichi will deliver a highly anticipated speech in the afternoon as her government reportedly mulls a sizable spending package.

In early European trades, the pan-region Euro Stoxx 50 futures were up 0.16% at 5,689, German DAX futures gained 0.14% at 24,345, FTSE futures added 0.04% at 9,623.5.

Sentiment was buoyed after the U.S.’ White House confirmed President Donald Trump will meet Chinese President Xi Jinping next week during a tour through Asia as a tariff deadline looms.

The announcement signals confidence that trade talks to be held in Malaysia between high level delegates in the coming days are likely to yield positive results, Capitital.com senior market analyst Kyle Rodda wrote about the White House statement.

It’s unlikely either side would set their leader up for an awkward failure, he added.

U.S. stock futures, the S&P 500 e-minis, added 0.12% at 6,783.

Crude futures trimmed a weekly gain spurred by new U.S. curbs on Russia’s two biggest oil companies.

The U.S. dollar index added 0.1% to 99.00. The euro edged down 0.1% to $1.161, and the yen weakened 0.2% to 152.85 versus the dollar.

In cryptocurrencies, bitcoin added 0.8% to $110,512.30, and ether gained 1.2% to $3,878.01.

Spot gold was up 0.3% at $4,138.52 per ounce, but still on track for its worst week since May.