Asian stocks hold recovery on trade hopes, risk improvement

Asian shares extend recent recovery on Wednesday as reports favoring the US-China trade deal and welcome data during early-day releases pleased buyers. Adding to the upbeat sentiment was rising Crude prices and speculations that the UK is near to breaking its Brexit deadlock.

MSCI’s broadest index of Asia-Pacific shares ex-Japan rose +0.5% by the press time. The index earlier grew to the highest since late-August. 

Japan’s Nikkei and Hong Kong’s Hang Seng are close to 1.0% gains whereas Australia’s ASX is earning more than 0.5% with China’s Shanghai composite adding around 0.2%. Furthermore, India’s Sensex gains around half a percent but China’s Shenzhen component and Shenzhen composite were almost flat.

On the Wall Street, Dow Jones Industrial Average fell a little and Nasdaq Composite added somewhat to the opening while S&P 500 was almost flat.

Traders turned optimistic as news reports from the White House economic adviser Larry Kudlow that the US and China are expected to make more headway in the talks join Financial Times report indicating both the sides are close to a trade deal. Additionally, the UK PM Theresa May’s readiness to include the opposition Labour party seems to have thwarted Brexit deadlock and is likely another positive for the global markets.

The WTI Crude prices also rose to fresh five-month high around $63.00 as a trade deal between the world’s two largest economies brightens demand outlook.

The US 10-year Treasury yields are in 2.5 basis points’ increase to 2.50% ahead of the European markets open.

Risk events like developments surrounding the US-China trade talks and Brexit will be in the spotlight for now.