Chinese stock figures slow as the US-China’s “Phase One” agreement affect the Asian market. The dollar imports and exports fell as details of their trade agreement emerged.
While the agreement helped boost Asian figures, Chief Market Strategist at JPMorgan Tai Hui warns potential investors.
The world saw previous attempts for trade truces crumble. Hui claims CEOs aren’t going to start investing because of the latest agreement between the two sides.
Both South Korea’s KS11 and Shanghai blue chips CSI300 added 1.4%.
Nikkei futures increased 1.3% from Friday’s 21,798 close.
MSCI’s Asia-Pacific shares outside Japan rose 1.1% in light trade.
Singapore’s central bank eased monetary policy on Monday for the first time in three years. Reports claim the trade talks contributed to this significantly.
American Index Dow Closes Higher
The American Index, Dow Jones Industrial Average, closed 317 points higher last Friday. The hike was lower than their 500-point close before the US-China agreement emerged.
The Asian market’s risk appetites increased as the two countries wrapped up “Phase One” last Friday. Both sides claim they’re close to ending their trade war.
More definitive details about the emerging agriculture, currency, and intellectual property protection deal will take four to five weeks. The agreement represents the biggest step after their 15 month-long tension.
Phase Two’s negotiations will begin when they conclude Phase One, further agitating the Asian market.
Furthermore, a Eurasia group practice head of China and Northeast Asia Michael Hirson claims they possibly won’t reach Phase Two. He says both countries would have to make “major political concessions” to advance from the current phase.
Trump claimed he wouldn’t stop until China changes its intellectual property, trade, and industrial policy practices. He argued these policies costed millions of US jobs.
With further escalation, the trade war will slice 2% and 0.6% of US and China’s real GDP, respectively.
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