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


Latest Forex News

Editors’ Picks

EUR/USD shakes above 1.18 after upbeat US retail sales

EUR/USD is trading above 1.18 after US retail sales missed with 1.2% in July but on top of upward revisions and alongside robust core increases. Consumer sentiment for August is awaited.

EUR/USD News

GBP/USD trades above 1.3050 ahead of more reopening steps

GBP/USD is trading above 1.3050, off the lows. The UK is set to ease some restrictions over the weekend, extending its gradual exit from lockdown. The US dollar is taking a break after gaining and ahead of retail sales. 

GBP/USD News

Gold trades with modest losses, below $1950 level

Gold traded with a mild negative bias through the early European session and was last seen hovering near the lower end of its daily range, around the $1945 region.

Gold News

Ethereum knocks out King Bitcoin

Ethereum exploded in the final hours of the American session yesterday, dealing a significant blow in its particular battle against Bitcoin. Technical analysis in previous days had shown the possibility of a bullish extension move.

Read more

WTI drops to $42 amid poor Chinese data led risk-aversion

WTI (futures on Nymex) has come under fresh selling pressure and attacks the $42 level, as risk-aversion seeps into the European session and diminishes the demand for the higher-yielding assets such as oil.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures