© Reuters. Market prices are reflected in a glass window at TSE in Tokyo By Wayne Cole SYDNEY (Reuters) –…
By Wayne Cole
SYDNEY (Reuters) – Asian stocks appeared to rally on Monday after the US and Chinese leaders became a guardian in their trade dispute, a relief for the global economic prospects and a tonic for emerging markets.
Trade-exposed currencies led the early gains, with the Australian dollar cutting a four-month peak while the dollar threw against the yuan . [1
9659004] E-Mini futures for () climbed 1.8 percent, while the Sydney market () increased by 1 percent. MSCI’s broadest Asia Pacific Asia Pacific Index () increased by 0.27 percent, but most exchanges had not yet begun.
futures () pointed to opening gains of approximately 1.2 percent.
“Markets open with a knee support to risk appetites, but time will tell how sustainable optimism turns out to be,” said the economist ANM, Jo Masters. “There are already very different officials on what was achieved at the meeting.”
“But for now, both sides can make a profit,” she added. “Perhaps not insignificant, it provides a window for exporting soybean from important Republican states, at least.”
China and the United States agreed to lift additional duties in an agreement that prevents their trade war from escalating as both sides attempt to bridge their differences with fresh conversations aimed at reaching an agreement within 90 days.
White House said Saturday that President Donald Trump told Chinese President Xi Jinping during Argentina’s high-level negotiations that he would not increase the rate of $ 200 billion Chinese goods to 25 percent on January 1 as previously announced.
“Deeply controversial torrents structural problems such as forced technology transfer are unresolved,” warned Westpac FX analyst Robert Rennie.
“This agreement between the United States and China is thus better described as a” mini breakthrough “which involves a short pause of trade tensions rather than a comprehensive policy agreement.”
Investors chose to see the glass half-full and raise the dollar 0, 6 percent to $ 0.7355 . It strengthened 0.8 percent at the security site to 83.70 ().
The US dollar relieved a basket of currencies of 97.136 () but was also strengthened on the yen to 113.79 . The euro contributed 0.1 percent to $ 1,1330 ().
The dollar had come under pressure last week when comments from Federal Reserve Chairman Jerome Powell were interpreted by the markets as indicative at a slower rate of interest.
Powell was scheduled to testify on Wednesday to a Congressional Economic Committee. But the hearing is expected to be postponed to Thursday because major exchanges will be closed on Wednesday to honor the former US President George H.W. Bush, who died on Saturday at the age of 94.
Treasuries rallied hard late on Friday to leave 10-year returns of 2.99 percent ().
Progress on trade between China and the United States and a simpler dollar could provide some support for commodity prices.
The oil was hit by its weakest month for more than 10 years in November and lost more than 20 percent when global supply exceeded demand. [O/R]
Speculation is high The Organization for Oil Producing Countries (OPEC) and Russia would agree on some form of production at a meeting in Vienna on Thursday.
Brent futures () increased $ 1.21 to trade into $ 60.67 barrels, while US commodity () gained $ 1.31 to $ 52.24.
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