Asian stocks rise as US and China extend talks beyond tariff deadline
|- A late recovery in the US stocks is boding well for the Asian equities.
- The US and China have extended trade talks to Friday, keeping alive hopes of a trade truce.
Stocks in Asia are better bid this Friday morning, possibly on hopes of a breakthrough in talks between the US and China.
On Thursday, President Trump eased investor concerns by talking about a letter from China's President Xi, which called for a joint effort to reach a deal. That helped US stocks pare losses. For instance, the S&P 500 index, which was down 1.5% in early trade, closed with 0.30% losses.
The late recovery on Wall Street is seemingly boding well for the Asian equities. As of writing, the Shanghai Composite index is up 2% and Japan's Nikkei is reporting a 0.63% gain. Shares in Australia, New Zeland, and Hong Kong are also flashing green.
The relief rally, however, may fall apart on Monday if the two sides again fail to reach a trade deal, leading to a full-blown trade war.
It is worth noting that the planned US tariff hike on Chinese goods from 10% to 25% is set to take effect later today. The markets, however, seem optimistic about the possibility of a trade deal, as indicated by the gains in the Asian stocks and the S&P 500 futures. After all, China has extended negotiations to Friday, despite tariff hike.
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