Asian stocks rise on US-China trade optimism
|- Asian equities are gaining ground on US-China trade optimism.
- US Commerce Secretary said licenses could be granted to the US corporate to do business with China's Huawei.
Major equity markets in Asian are flashing green on US-China trade optimism.
The Shanghai Composite index is currently trading at 2,974, representing a 0.56% gain on the day, having bounced up strongly from the 200-day average on Friday. Hong Kong's Hang Seng index is adding more than 1% at press time.
Indices in South Korea and New Zealand are also reporting solid gains. Markets in Japan are closed on Monday for a holiday.
Commerce Secretary Wilbur Ross said Sunday that the government will "very shortly" grant licenses for American firms to sell to Chinese telecommunications giant Huawei, which was placed on a blacklist over alleged national security concerns earlier this year.
Ross added further that a trade agreement between the US and China could be reached at Iowa, Alaska, Hawaii or possibly in China. The deal was tipped to be signed at November's Asia-Pacific Economic Cooperation summit in Chile. The event, however, has been canceled dur to protests.
The positive comments on the trade front have likely put a bid under the Asian equities. The futures on the S&P 500 are also adding 0.20% at press time.
On the data front, Australia's consumer spending growth, as represented by retail sales, slowed to 0.2% month-on-month in September, having increased by 0.4% in August. The dismal data, however, failed to keep investors from buying equities. Australia's S&P/ASX 200 is currently trading 0.30% higher on the day.
Also, New Zealand's Treasury revised lower its forecast for neutral interest rate by 75 basis points and cited downside risks to the economy due to worsening business sentiment and external risks.
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