Asian stocks chalk up gains despite Trump’s comments on trade deal

Asian investors snap up equities, ignore Trump’s comment on trade deal.
Trump on Monday said the US is not ready for a trade deal with China.

Omkar Godbole FXStreet Contributor

Asian stocks are reporting gains this Tuesday morning in Asia despite the US President Trump’s comments that Washington is not ready to make trade deal with China.

Japan’s Nikkei is currently up 0.43% and Hong Kong’s Hang Seng is flashing a 0.40% gain. The Shanghai. Composite index is up 0.80% while stocks in Australia and South Korea are also flashing green.

Trump on Monday said that tariffs on Chinese goods “could go up very, very substantially, very easily.”

“I think they probably wish they made the deal that they had on the table before they tried to renegotiate it,” Trump said at a joint press conference in Tokyo, adding further that while China would like to make a deal, we’re not ready to make a deal.

So far, Trump’s comments have been ignored not only by the Asian equities but also by the futures on the S&P 500, which are currently pointing to 0.22% gains at the opening bell.

In FX markets, however, the AUD/USD pair is flatlined around 0.6925 despite record highs in Chinese iron ore prices. Other major currency pairs are also seeing little action.

The US stocks observed Memorial Day holiday on Monday. Meanwhile, the European stocks registered gains after EU elections.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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