Stocks in Asia traded higher on Tuesday as investors looked at the US-China trade front following a new escalation of tensions.
Chinese stocks on the mainland rose in early trade, with Shanghai Composite adding 0.91% and Shenzhen component reaching 1.28%. The Shenzhen composite advanced 1,207%. Hong Kong's Hang Seng index was broadly flat.
Japanese Nikkei 225 gained 1.25% in morning trading, as index-heavy stocks and conglomerate Softbank Group jumped 2.76%. Topix also rose 1.03%.
South Korea's Kospi added 0.91% as chipmaker SK Hynix saw its stock rise 1
Overall, the MSCI Asia ex-Japan index rose 0.33%.
US-China trade watch
Investors will watch for further development of the ongoing Beijing-Washington trade war. US President Donald Trump said Monday that US trade officials received overnight calls from the Chinese that Beijing was ready to return to the negotiating table.
On the Chinese side, however, Foreign Ministry spokesman Geng Shuang said he was unaware that a telephone conversation had taken place between the two parties. This was further supported by Hu Xijin, chief editor of the Chinese state-run newspaper The Global Times, who said in a tweet Monday: "Based on what I know, Chinese and US top dealers did not make phone calls in the last days."
This trend came after a recent tightening tensions, with both China and the United States announcing that new tariff rates will be smeared on billions of dollars of each other's goods.
"President Trump's continued escalation of tensions leaves little room for China (or indeed the United States) to compromise without losing face, making a deal less likely in the short term," wrote Tapas Strickland, an economist in National Australia Bank, One Morning
It is "clear" that Trump and his administration still want to reach an agreement with China if it "meaningfully addresses some of the concerns" raised around issues such as forced transfer of technology and theft of intellectual property , Clete Williams, a partner at Akin Group, told CNBC's "Squawk Box" on Tuesday.
That said, I think you see the president say one thing on Friday, something else today, "Williams said." Many people try to understand that. My advice to them is to stay calm, do not read every single comment. If you can't be calm, you can bet on instability because you will see many ups and downs and back and forth between now and when a deal … is reached. "
The Chinese yuan will be monitored today, after offshore currency trading touched a record low Monday amid the trading turmoil. It last traded at $ 7.1610 per dollar.
The official mid-point reference for that country's yuan of People's Bank of China was set at 7.0810, a new 11-and-a-half year low, but still stronger than expected, Reuters reported, the currency last traded at 7.1459.
The US dollar index, which tracing the greenback against a basket of their peers, was at 97,997 and had a previous high of 98,054.
The Japanese yen traded at 105.84 against the dollar after weakening from levels below 105 in the previous session. , 6770 after rising from levels below $ 0,672 yesterday.
Oil prices rose in the morning on Asian trading hours, with international reference number Brent crude futures contract dropping 0.58% to $ 59.04 per barrel and US happen raw futures which gained 0.67% to $ 54 per barrel.
Here is a look at some of the data available today:
- Germany: Gross domestic product for the second quarter at 14:00 HK / SIN