Stocks have edged up, taking comfort from a possible easing in trade tensions between the US and China and an ebbing of nerves over credit risks in the banking sector, which in turn nudged gold lower.

In Asia, the near-certainty of Sanae Takaichi becoming Japan's next prime minister briefly sent Tokyo's Nikkei to a record high and dented the yen.

US President Donald Trump said he expected to reach a fair trade deal with Chinese President Xi Jinping when the two meet next week in South Korea, and played down the risks of a clash over the issue of Taiwan.

The prospect of a resolution helped bolster investor sentiment, along with a deal between Australia and the United States for the supply of rare earth materials.

Investor confidence was hit hard last week as a clutch of bad loans at US

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