Sat, May 18, 2024

Asian Stocks Surge on Potential Trade Deal | WibestBroker

Asian Stock Market: Stock Market on the cityscape at night background.

Asian stock markets traded in green territory on Monday, registering more than 14-week highs. This is due to last week’s developments in trade negotiations and optimism over the latest US job data renewed investors’ risk appetite.

MSCI’s broadest index of Asia-Pacific shares outside Japan advanced by 1.08% to $530.86, hitting its highest since July 24. It also set the index for its most substantial one-day increase since October 11.

The index last stood at 1.17% to $531.09.

Hong Kong’s Hang Seng gained 1.75% to HK$27,576.00, while South Korea’s KOSPI added 1.43% to ₩2,130.24.

In mainland China, the Shanghai Composite index rose by 0.58% to CN¥2,975.49, and the blue-chip CSI 300 was up by 0.65% to CN¥3,978.12.

Australia’s S&P/ASX 200 also climbed by 0.27% to A$6,686.90, while markets Japan were closed for a holiday.

US-China Trade Talks Lift Asian Stock Markets

The US and China both confirmed on Friday to have made progress in discussions on ending the long-drawn-out trade war.

The trade conflict has significantly struck the global economy, with US officials saying a deal could be sealed this month.

Still, the contentious issues on whether the US will cancel the December tariffs and remove some of the current tariffs in line with China’s demands remain unknown.

If the issue persists, then a deal could collapse, according to analysts of the National Australia Bank.

White House economic adviser Larry Kudlow also stated on Friday that the 15% tariffs on Chinese goods. This includes products such as electronic devices, toys, and other products is due to be imposed on December 15, and the decision whether to withdraw them would be up to US President Donald Trump.

The upbeat US job report also supported Asian stock markets. Data from the Labor Department last week showed the country’s employment rate growth slowed less than estimates in October. Hiring during the past two months strengthened more than anticipated.

Non-farm payrolls added 128,000 jobs in the prior month, surpassing growth forecast of 85,000. It managed to remain resilient despite the impact of the strike action at US carmaker General Motors Co.

Some market confidence was probably justified following the positive data, according to ING Singapore Asia-Pacific chief economist Rob Carnell.

The figure also reinforced the Federal Reserve’s earlier comments about the economy being in good shape.

Carnell said everybody had been looking for a much worse number, and it did not materialize, so some bounce from that was entirely plausible and reasonable.

Carnell, however, added that the lingering uncertainty over trade talks and low potential for a worldwide monetary easing by central banks presented a muted outlook.

YOU MAY ALSO LIKE

Oil prices

Quick Look: China’s industrial output increased by 6.7% in April, signalling stronger

China Less Inclined To Support The US in Ukraine War

Quick Look: Retail sales grew by 2.3% in April, below the forecast

Stocks and important factors

Quick Look: GameStop rose 126%, causing $1.8B in short-seller losses; AMC increased

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

Dutch Neobank BUX Names Marcel Jongmans as Chairperson

BUX Holding, the parent firm of mobile investment platform BUX, today announced Marcel Jongmans as the board’s new Chairperson. With almost 30 years in financial services, Jongmans will succeed Founder Nick Bortot, who

BROKER NEWS

Broker News

Dutch Neobank BUX Names Marcel Jongmans as Chairperson

BUX Holding, the parent firm of mobile investment platform BUX, today announced Marcel Jongmans as the board’s new Chairperson. With almost 30 years in financial services, Jongmans will succeed Founder Nick Bortot, who will