Asian stocks rise as US and China extend talks beyond tariff deadline


  • A late recovery in the US stocks is boding well for the Asian equities. 
  • The US and China have extended trade talks to Friday, keeping alive hopes of a trade truce.

Stocks in Asia are better bid this Friday morning, possibly on hopes of a breakthrough in talks between the US and China.

On Thursday, President Trump eased investor concerns by talking about a letter from China's President Xi, which called for a joint effort to reach a deal. That helped US stocks pare losses. For instance, the S&P 500 index, which was down 1.5% in early trade, closed with 0.30% losses.

The late recovery on Wall Street is seemingly boding well for the Asian equities. As of writing, the Shanghai Composite index is up 2% and Japan's Nikkei is reporting a 0.63% gain. Shares in Australia, New Zeland, and Hong Kong are also flashing green.

The relief rally, however, may fall apart on Monday if the two sides again fail to reach a trade deal, leading to a full-blown trade war.

It is worth noting that the planned US tariff hike on Chinese goods from 10% to 25% is set to take effect later today. The markets, however, seem optimistic about the possibility of a trade deal, as indicated by the gains in the Asian stocks and the S&P 500 futures. After all, China has extended negotiations to Friday, despite tariff hike.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 

EUR/USD News

GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 

GBP/USD News

Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures