Asian stocks rise, Shanghai Composite attempts breakout on trade optimism
|- Asian equity markets are better bid Friday morning on US-China trade optimism.
- President Donald Trump set to meet with Chinese Vice Premier Liu He on Friday.
Stocks in Asia are better bid amid positive developments on the US-China trade front.
Japan's Nikkei 225 index is currently trading 1% higher on the day. In South Korea, Kospi is adding 1.14% and Hong Kong's Hang Seng is reporting a 2% gain.
Benchmark indices in Australia and New Zealand are also flashing green. Meanwhile, the Shanghai Composite is adding 0.10% at press time. The index is looking to break higher from the bull flag pattern, as per the daily chart.
A breakout, if confirmed, would imply a resumption or an extension of the rally from Aug. 6's low of 2,734.
Focus on trade talks
The US and China are currently in the midst of high-level trade negotiations in Washington.
While the odds of a comprehensive trade deal are low, the markets are expecting both nations to enter into some kind of partial deal. Bloomberg reported on Thursday that the US is planning to enter into a currency agreement with China.
Further, President Trump said in a tweet in the early Asian session that he is expected to meet Vice Premier Liu He on Friday, raising hopes that progress could be made on trade issues.
The global equities could rise next week if the US-China trade talks end on a positive note. However, if the talks end on a sour note, the trade war will likely escalate, sending equities and other risk assets lower.
Note that the US is scheduled to increase duties on $250 billion worth of Chinese goods from 25% to 30% on October 15. Also, a 15% tariff on an additional $160 billion worth of Chinese imports is also expected to kick in on December 15, according to CNBC.
Shanghai Composite daily chart
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