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Asia bonds trade higher, increased by confidence in US-China trade talks

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Asia Pacific markets traded mostly aloft on Friday as investors cheered a news observant American officials might be weighing a luck of easing tariffs on China, in a bid to pull brazen trade talks.

That confidence carried shares in a Greater China region: Hong Kong’s Hang Seng index rose 1.14 percent in late-afternoon trade. On a Chinese mainland, a Shanghai combination gained 1.42 percent to 2,596.01 while a Shenzhen combination and a Shenzhen member both advanced.

In Japan, a Nikkei 225 combined 263.80 points, or 1.29 percent, to 20,666.07 while a Topix index was adult 14.39 points, or 0.93 percent, during 1,557.59. South Korea’s Kospi gained 17.22 points, or 0.82 percent, to 2,124.28.

Australia’s benchmark ASX 200 notched adult 0.5 percent to 5,879.6, with all sectors rising.

The Wall Street Journal reported Thursday that U.S. Treasury Secretary Steven Mnuchin due lifting all or some of a tariffs on Chinese imports to give Beijing a reason to make deeper concessions in ongoing trade talks between a dual countries.

But U.S. Trade Representative Robert Lighthizer resisted a idea, disturbed that it could be deliberate a pointer of weakness, a Journal added, citing people with believe to a matter. A comparison administration central told CNBC’s Eamon Javersthat “there’s no contention of lifting tariffs now.”

Still, a news “helped to lessen a dashed hopes for an proclamation of a assent trade understanding during a side-lines of a World Economic Forum in Davos from Jan 22nd-25th,” Christy Tan, conduct of markets plan and investigate for Asia during a National Australia Bank (NAB), wrote in a note.

President Donald Trump on Thursday canceled his delegation’s outing to Davos, citing a ongoing prejudiced supervision shutdown. U.S. officials are still awaiting Chinese Vice Premier Liu He to revisit Washington during a finish of January for serve trade talks.

The National Australia Bank’s Tan questioned if a tariff agreement would be means to spin around China’s negligence economy, though analysts during Eurasia Group pronounced that Trump and Chinese personality Xi Jinping’s enterprise to equivocate tariff escalation reduces a luck of talks violation down within a initial half of a year.

“Fearful of a disastrous greeting of jumpy markets to a fall of talks, a dual sides have taken a constructive approach, refusing to let parallel geopolitical, Iran sanctions, and cyber-related tensions penetrate negotiations,” a analysts pronounced in a note.

“Rather than strech a extensive agreement by a fanciful deadline of 1 March, a dual sides will extend talks,” they added, observant a prolongation could be for another 90 days.

Thursday’s news from a WSJ also sent U.S. bonds aloft overnight.

The U.S. dollar index, that marks a greenback opposite a basket of a peers, final altered hands during 96.050 as of 3:14 p.m. HK/SIN.

The yen, noticed as a safe-haven asset, traded during 109.44 to a dollar, weaker than levels nearby 108.00 progressing in a week. The Australian dollar was during $0.7193, dipping from an progressing high of $0.7205 while a euro fetched $1.1392.

— CNBC’s Fred Imbert contributed to this report.

WATCH: This trade understanding might be what Trump needs to take on China

This trade understanding might be what Trump needs to take on China


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Article source: https://www.cnbc.com/2019/01/18/asia-markets-us-china-trade-currencies-in-focus.html