Asian equities ticked higher on Tuesday on optimism that the US and China may be able to reach a trade deal before a March 1 deadline.
Japan's Nikkei jumped close to 500 points or 3 percent, as the improved risk appetite lifted USD/JPY above 110.00. Stocks in Australia and New Zealand rose 0.32 percent and 0.90 percent, respectively. China's Shanghai Composite index also added 0.3 percent as the S&P 500 futures gained 0.5 percent.
In FX markets, the US dollar remained on the offensive, as concerns of a slowdown in Europe and Oceania has pushed up yield differentials in favor of the greenback.
US and Chinese officials expressed hopes on Monday that a new round of talks would bring two sides closer to easing out trade tensions.
It is worth noting that the 30-day truce period is set to end on March 1, after which the US is scheduled to hike tariffs on $200 billion worth of Chinese goods to 25 percent from 10 percent.
The risk assets, therefore, could take a beating if the two sides are unable to reach a trade deal before March 1.
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.