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Home / Business / Asian stocks creep higher on hopes of Chinese-American trading weapons by Reuters

Asian stocks creep higher on hopes of Chinese-American trading weapons by Reuters



© Reuters. FILE PHOTO: An investor sees a board showing stock information at a brokerage office in Beijing

By Swati Pandey and Wayne Cole

SYDNEY (Reuters) – Asian stock markets rose Thursday after a media report USA and China have so far agreed on a ceasefire in his trade war, in front of a closely watched meeting between the two nations this weekend.

South China Morning Post (SCMP), referring to sources, said in Washington and Beijing to present an agreement It would help avert the next round of tariffs on an additional $ 300 billion of Chinese imports.

On Wednesday, US President Donald Trump said a trade deal with his Chinese counterpart Xi Jinping was possible this weekend, although he was willing to impose tariffs on almost all remaining Chinese imports whose calls failed.

"But the gun cake seems to have been baked," SCMP said one of its sources.

Hope the world's two largest economies wo uld eventually reach an agreement enough to cheer for investors, and sent MSCI's widest index of Asia-Pacific stocks outside Japan up 0.6%.

China led the gain with its blue chip index up 1

.4%. South Korea's index rose by 0.6%, while Hong Kong and Japan jumped 0.8%.

The relationship between Washington and Beijing has spiraled down since the talks joined in May when the United States accused China of rejecting promises to reform the economy.

The ongoing commercial war has already rattled investors who have pulled shares for the security of bonds and gold this year. It has also prompted the US Federal Reserve to stop the price tightening and actually signal a cut as soon as next month.

Many traders said they expected the market to remain in a narrow area until after the weekend G20 leaders in Osaka, Japan, where Trump also holds bilateral talks with other nations.

"The bottom line is that the market has been hit by a noise of noise that gives us less clarity than before," says Chris Weston, market strategist at Pepperstone.

"While the most likely situation is that we only hear many bravado that they two sides plan to work closely together and agree to find a solution that is amicable, we still need to consider whether the event poses a gaping risk to markets, "he added.

" It certainly feels as if the probability is that we should see that traders manage exposures and refrain from putting too much extra risk just in case. "

Wall Street had been cautious, with the end Wednesday down 0.04%, while it lost 0.12% and Nasdaq rose 0.32%.

LESS THAN 50

Trump weighed into US monetary policy on Wednesday, Federal Reserve accuses chairman Jerome Powell of doing a "bad job" and "out to prove how tough he is" by not cutting the interest rate.

Markets are convinced that the Fed will really ease its next meeting in July, but had to partition games

Futures are 100% priced for a 25 basis point cut, and entail a 22% chance of 50 basis points.

The likelihood of a less aggressive Fed and expectations of a China-made trading trick and China helped ease sales pressure on US dollars, which went up to 96,276 on a basket of currencies from a three-month breakthrough of 95,843.

The dollar jumped modestly toward the yen to 107.97 and away from a low of 106, 77. The euro also eased back to $ 1,13615 from a top p $ 1.1412.

Dollars gains took some of the luster of gold, which broke a session winning stretch and eased to $ 1,407.22 per ounce.

Oil prices went into surplus in early Asia, after achieving a larger than expected earnings in the crude stock when exports were record high and surprise falls in refined product stocks.

futures eased 20 cents to $ 66.29, while losing 22 cents to $ 59.16 per barrel.


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