TOKYO (Reuters) – Asian stocks reached a record number of countries outside a brokerage in Tokyo
By Shinichi Saoshiro and Tomo Uetake
than four-month high on Wednesday, lifted by optimism that the United States and China might be able to hammer out a deal with nearly every year-long trade dispute.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6 percent to its highest level since early October and Japan's average climbed 1
China's and blue-chip CSI 300 were both around 2 percent to multi-month highs, with IT shares leading the gains on Beijing's promise to push for core technology and innovation
Asia took its cue from Wall Street, where the and Nasdaq each rallied about 1.5 percent overnight on optimism over the US China trade negotiations and a tentative US . congressional spending deal to avert another partial government shutdown.
European shares were expected to be higher, with financial spread bets seeing Britain's, France's and Germany's each ticking up between 0.4 and 0.5 percent.
U.S. President Donald Trump said on Tuesday that he could see the March 1 deadline for reaching a trade agreement with China "for a little while," if the two sides were close to a complete deal.
Officials in Washington and Beijing had expressed hopes that a round of talks this week would bring them closer to their seven-month trade war.
"We are currently seeing negative sentiment which had built up over trade concerns and US fiscal issues being unwound," said Soichiro Monji, senior economist at Daiwa SB Investments in Tokyo.
"For risk assets to move purely on optimism "The US-China trade row will need to see some of the closures in March. A more permanent solution to avoid a US government shutdown is also necessary. It has to be remembered that we are not there yet." congressional negotiators cobbled together a tentative bipartisan border security deal late on Monday to another partial government shutdown. However, Trump on Tuesday expressed displeasure with the agreement and said it had yet to decide whether to support it.
The Cboe Volatility Index, Wall Street's so-called "fear gauge," dropped overnight to as low as 14.95, its lowest level in more than four months.
With risk aversion ebbing for the time being, safe-haven Government bonds were sold and their yields rose. The extended and overnight rise and edged up to a one-week high of 2,700 percent.
The dollar was on the defensive as investors shifted their money to riskier assets amid hoping for the US-China trade deal.
The dollar's index against six major currencies stood at 96,667 after its eight-day winning run came to an Ended overnight to push it away from a two-month peak.
The euro was higher at $ 1,136 having gained 0.5 percent the previous day, when it bounced from a three-month low of $ 1,128.
Against the yen , the greenback edged up as much as 0.2 percent to 110,705 yen, its highest level in 1-1 / 2 months.
The dollar jumped as much as 1.7 percent to a one-week high of $ 0.6852 after the Reserve Bank of New Zealand holds the official cash rate at a record low of 1.75 percent and sounded less than markets had wagered on, forcing some short covering.
In commodities, US West Texas Intermediate (WTI) up to 1.0 percent at $ 53.65 per barrel after rallying 1.3 percent on Tuesday, while International futures were up 1.0 percent at $ 63.07 per barrel.
in January, and as lead member Saudi Arabia said it would reduce its output in March at an additional 500,000 barrels.