SYDNEY, Feb 17 (Reuters) – Asia share markets crept higher on Monday as Hong Kong’s tech sector stole the limelight, while upbeat Japanese economic growth contrasted with a weak U.S. retail sales report to lift the yen on the dollar. Geopolitics remained in focus with reports that talks on the Russian-Ukraine conflict will begin in Saudi Arabia this week, though the participants are not entirely clear. The imminent threat of reciprocal U.S. tariffs has receded until April, but the risk that they might include levies based on value added taxes in other countries was a major worry. Ray Attrill, head of FX research at National Australia Bank, commented on the potential impact of U.S. tariffs on global growth. The Financial Times reported that the European Commission would explore tough import limits on certain foods made to different standards in an effort to protect its farmers, echoing President Donald Trump’s reciprocal trade policy. Alibaba is set to report earnings on Thursday, with options implying a 7.5% move in either direction. Goldman Sachs raised its outlook for Chinese growth and stocks, suggesting that widespread adoption of AI could raise earnings per share by 22.5% a year over the next decade. EUROSTOXX 50 futures held steady, while DAX futures rose 0.2% and FTSE futures eased 0.1%. A holiday in U.S. markets made for thin trading, though S&P 500 futures still rose 0.2% and Nasdaq futures 0.3%. Treasuries rallied on the soft sales numbers, with markets pricing in two Federal Reserve rate cuts this year. Minutes of the Fed’s last meeting are due on Wednesday, and several Fed officials are scheduled to speak. The drop in yields undermined the dollar, leaving the index at 106.84. The euro was firm at $1.0498, and the pound held at $1.2592. Central banks in Australia and New Zealand are expected to cut interest rates this week. In commodity markets, gold was near record highs at $2,899 an ounce, while oil prices slipped. Brent fell to $74.62 a barrel, and U.S. crude to $70.55 per barrel. — news from Reuters
