By Alun John

HONG KONG (Reuters – Asian shares rose mostly on Tuesday due to relief in China’s property sector. Meanwhile, investors kept a close watch on a crucial meeting between U.S. president Joe Biden as well as Chinese leader Xi Jinping.

Biden, Xi Jinping and others opened the closely watched talks in warm terms. They both stressed the need to resolve conflict with the rest of world.

MSCI’s Asia-Pacific share index outside Japan rose by 0.27%, to a 2 1/2 week high. While it gained 0.39%

Invesco global market strategist David Chao said, “Investors should be closely watching the Biden Xi summit” to determine if it will bring about any improvements in an already complicated relationship. Although no breakthroughs can be expected, this is a good first step.

Chao said that Asia’s markets this week were also reacting to China’s improved than anticipated economic data released Monday and the current situation in the property market on the mainland.

“So far we haven’t seen a loss of confidence in certain developers and the government has come out more forcefully to ensure that homeowners are protected,” he said.

Blue chips in China rose 0.4% while benchmarks for Hong Kong rose 0.7% thanks to the rise of property stocks

A Hong Kong-listed index of mainland Chinese developers rose by as much as 3 percent. Kaisa Prosperity was an imploded developer’s property services unit. However, it plunged 14% when trading resumed. [L4N2S70BD]

The u.s. stock futures index, or the, rose 0.11% and Nasdaq futures increased 0.17%.

Wall Street was little altered by rising Treasury yields, which slowed the appetite for tech stocks and boosted financial interest. [.N]

The benchmark U.S. Treasury yields were nearly five basis points higher than their three week high Monday. This was due to companies selling debt to avoid liquidity tightening during holidays trade, and before a U.S. Government sale of 20-year bonds Wednesday. [US/]

On Tuesday they fell to 1.6094%, but are up from 1.42% a week ago.

Additionally, rising yields helped to keep the dollar strong against a basket of peers for 16 months.

Investors’ assessments of global central bank responses to inflation are also driving the currency market.

Christine Lagarde, President of the European Central Bank on Monday, rejected market calls for tighter monetary policy. She said that doing so to control inflation now could impede recovery in the euro area.

The euro fell to $1.354, a near 16-month low. In comparison to October’s high of 114.69, the pound dropped to £1.3359 close the year. The dollar was at 114.17 versus the Japanese. [FRX/]

The dollar has been helped by recent data that shows a strong U.S. Economy. It also cast doubts upon the Fed’s view that price pressures would be temporary. These factors fuel speculation that interest rates may be raised sooner than originally thought.

Britain’s Labour Market Report for September will be released later in the day, Tuesday. CBA analysts said that this report could make or break Britain’s case for an increase in rates.

The U.S. Retail Sales, Trade Prices, and Industrial Production for October will be due later in the day. This gives another indication about the economic health.

Oil markets rose 0.3% to $81.18/barrel. The barrel rose 0.5% to $82.48 [O/R]

It was steady at $1.862 an ounce, just a few dollars off Monday’s $5,870 high. [GOL/]