Asian stocks strengthen as buyers cherish latest data, US-China trade and MSCI news
Asian stocks are in green during early Friday as they portray recent positive data from the US and China. Adding to the upbeat concern were optimism surrounding the US-China trade deal and the MSCI’s announcement to give a higher proportion to mainland shares.
Reuters reported that MSCI’s broadest index of Asia-Pacific shares outside Japan was up more than 0.3 percent.
Shares in Japan, Hong Kong, Australia and India reported gains while stocks from Indonesia and Malaysia were in red. Among them, Japan’s Nikkie 225 was leading the winners with +1.15% versus Indonesian counterpart being on the other side losing -1.26%.
Increase in the fourth quarter (Q4) GDP figures from the US, better than forecast China Caixin manufacturing PMI and risk-on mood seem to play their role to fuel Asian stocks. Additionally, chances of a trade accord between the world’s two largest economies have grown recently as the US officials are preparing final documents to present at the Trump-Xi meet.
With the recent increase in investor morale, the Asian stocks may continue extending their latest upside. However, on-going tension between India and Pakistan, coupled with any negative developments from the US-China trade, needs to observe carefully.
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.
