SHANGHAI, Dec 16 — Asian shares ticked higher today as investors cheered an announced trade agreement between Beijing and Washington over the weekend although jubilation was capped by prevailing scepticism about the deal.

US Trade Representative Robert Lighthizer yesterday said a deal was "totally done”, notwithstanding some needed revisions, and would nearly double US exports to China over the next two years.

That helped push the MSCI’s broadest index of Asia-Pacific shares outside Japan, which had touched its highest level since April 24 on Friday, up 0.21 per cent.

Australian shares jumped, adding 1.23 per cent. But Japan’s Nikkei 225 pulled back 0.21 per cent after a strong rally on Friday that pushed the index to a 14-month high.

The small drop in Japanese shares also reflected continued investor trepidation over the specifics of the trade deal.

"The announcement is a step in the right direction for the two nations, but does not completely reduce the chances of trade disputes between the two nations in the year,” ANZ analysts said in a morning note.

The "phase one” agreement came ahead of the deadline yesterday for a new round of US tariffs on almost US$160 billion (RM662.5 billion) of Chinese imports. The 17-month-old trade dispute has roiled financial markets and taken a toll on world economic growth.

US shares had struck a cautious note on Friday, paring intial gains to end barely higher as weary investors await signs of a concrete deal.

However, the news of a deal was still enough to send the S&P 500 to a record closing high of 3,168.8, up 0.01 per cent. The Nasdaq Composite added 0.2 per cent to end at 8,734.88, also a record, and the Dow Jones Industrial Average rose 0.01 per cent to 28,135.38.

US Treasury yields moved higher today, reflecting the positive mood. Benchmark 10-year Treasury notes rose to 1.8365 per cent compared with its US close of 1.821 per cent on Friday and the two-year yield touched 1.616 per cent compared with a US close of 1.604 per cent.

The dollar rose 0.05 per cent against the yen to 109.403 and the euro was slightly higher at US$1.1123. Sterling, which jumped last week after the UK general election produced a strong Conservative majority, notched up 0.23 per cent to US$1.3356.

The dollar index, which tracks the greenback against a basket of six major rivals, was down at 97.140.

Oil prices, which had risen on Friday following the deal, cooled in early Asian trade today. US West Texas Intermediate crude was down 0.38 per cent at US$59.84 per barrel.

Spot gold prices fell 0.1 per cent, with the precious medal trading hands at US$1,473.88 per ounce. — Reuters