Asian stocks trade mixed as US-China sign phase-one deal


  • Asian stocks are trading tentatively despite optimism on the trade front. 
  • The US-China deal was likely priced in advance. 
  • The focus now is on the US Retail Sales data, due for release at 13:30 GMT .

Asian equities are trading mixed even though the US stocks closed at record highs in the overnight trade on the conclusion of the US-China phase one deal.

At press time, Japan's Nikkei index is trading flat and China's Shanghai Composite index is reporting a 0.30% loss. Meanwhile, stocks in Hong Kong, Australia, and South Korea are flashing moderate gains.

The futures on the S&P 500 are also lacking a clear directional bias. The index notched a fresh record high Wednesday on trade optimism.

The US and China signed the phase-one trade deal on Wednesday. President Donald Trump said the "landmark” deal would benefit American farmers. Critics, however, believe the US gave away too much in the deal by including an option for China to quit the agreement should the US re-impose tariffs.

Nevertheless, the much-awaited trade truce has been reached. Even so, the Asian markets are struggling to rally strongly, possibly because the deal was priced in advance. "Given the amount of speculation by the markets and commentary by officials ahead of Wednesday’s signing, it is unsurprising markets have not rallied too strongly upon final signing,” said Hannah Anderson, a strategist at JPMorgan Asset Management, according to Bloomberg.

Focus on US data

With the deal behind us, the focus is likely to shift to the US and global macro data releases.

The data, due at 13:30 GMT, is expected to show consumer spending, as represented by Retail Sales, rose 0.3% in December, following a 0.2% rise in November.

An above-forecast data would reinforce expectations for a stronger economic performance in 2020 and will likely bode well for equities.

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

Editors’ Picks

EUR/USD pressured under 1.11 amid virus fears, ahead of the ECB

EUR/USD is trading below 1.11, under pressure as fears of the coronavirus weigh on markets. The ECB is set to leave rates unchanged and provide views about the current economic environment. 

EUR/USD News

GBP/USD consolidates gains above 1.31 after parliament seals Brexit

GBP/USD is trading above 1.31, consolidating its gains. The House of Lords gave its final seal to Brexit. Speculation ahead of the BOE's decision continues after upbeat data diminished chances for an imminent move.

GBP/USD News

Forex Today: Coronavirus fears spread and weigh on markets, Aussie surges, all eyes on the ECB

Chinese authorities have shut down access links to Wuhan, the large provincial capital where the coronavirus originates from. The news, coming ahead of the Chinese Lunar New Year, is weighing on markets. 

Read more

WTI hits 7-week low, potential bull RSI divergence on 1H

WTI oil fell to $55.68 soon before press time, the lowest level since Dec. 3, having declined by 3.73% on Wednesday. The black gold has found acceptance below $56.60, which is the 61.8% Fibonacci retracement (one of the golden ratio) of the rally from $51.03 to $65.62.

Oil News

USD/JPY drops to fresh eight-day lows near 109.50

USD/JPY extends losses and trades close to an eight-day low near 109.50 in a relatively risk-off environment, with the media headlines full of the coronavirus as it spreads internationally. Bears can look to the golden ratio around mid-108s.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures