Asian stocks cheer trade optimism ahead of G20
- Not only the US but China have also stepped forward while conveying brighter chances of a trade deal.
- G20 will gain major market attention while US GDP can also be observed for near-term directives.
While late-Wednesday’s trade positive comments from the US Treasury Secretary Steve Mnuchin initially pleased the Asian share buyers, statements favoring the odds of the US-China trade deal by the Chinese media offered additional strength to market optimists and extended the stock momentum to the north during early Thursday.
With the rising hope of a trade deal between the world’s two largest economies, MSCI’s index of Asia-Pacific shares ex-Japan is up 0.89% whereas Japan’s Nikkei gains 0.84% by the press time.
China’s Hang Seng marks more than 1.13% while India’s BSE Sensex also cheers the US secretary of state Mike Pompeo’s visit despite trade/defense differences with the world’s biggest economy.
Australia’s ASX 200 seems cold-blooded to the trade news/China’s upbeat industrial profits as it is barely in the positive region. Same is the case with New Zealand’s NZX50.
Market risk tone, as reflected from the US 10-year treasury yield, remains upbeat around 2.054%.
Even if 2-day long gatherings of global leaders in Japan (G20 on June 28-29) is likely to remain in the spotlight, the final reading of the US gross domestic product (GDP) data for first quarter 2019, likely 3.1% annualized on QoQ basis, can also affect the market momentum.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
