Left Menu
Development News Edition

GLOBAL MARKETS-Asian stocks rally to record high ahead of trade deal; yen slips


GLOBAL MARKETS-Asian stocks rally to record high ahead of trade deal; yen slips
Image Credit: StoryBlocks

Asian share markets rose on Tuesday and safe-haven assets slid as signs of goodwill between China and the United States supported optimism for global growth, with the world's two biggest economies preparing to formalise a trade-war truce. The U.S. Treasury Department on Monday said China should no longer be designated a currency manipulator - a label it applied as the yuan slid in August. China, meanwhile, has allowed the tightly managed currency to climb to its highest point since July.

China's offshore yuan extended strong gains to the dollar on Tuesday morning to a 5-1/2-month high, supported by rising optimism towards Sino-U.S. trade developments. The offshore yuan surged to a high of 6.8745 per dollar, the firmest level since July 26.

The moves come as a high-level Chinese delegation arrived in Washington ahead of Wednesday's signing of the Phase 1 trade agreement, a step toward de-escalating a prolonged dispute that has hurt the world economy. MSCI's world shares gauge hit a fresh all time high, while MSCI's broadest index of Asia-Pacific shares outside Japan drifted higher.

Japan's Nikkei added 0.8% and hit its highest point in a month. Australia's S&P/ASX 200 rose 0.7% and touched a fresh record intraday high. Gold fell and the safe-haven Japanese yen dropped to a seven-month low. "The market appears to be fully pricing a signed agreement," said CMC Markets' chief strategist in Sydney, Michael McCarthy.

With the text of the deal still yet to be finalised, the gains could leave stocks exposed should anything go awry, he added, pointing to modest morning volumes hinting at caution. "It's buy the rumour, sell the fact...even a delay could see an extremely negative reaction," he said.

United States Trade Representative Robert Lighthizer told Fox Business late on Monday that the Chinese translation of the deal's text was almost done. "We're going to make it public on Wednesday before the signing," he said.

Overnight Wall Street made new record closing highs, driven by sharp rises in tech stocks as investors bet firms such as Facebook Inc, Microsoft and Apple Inc might have the most to gain from a growing global economy. The S&P 500 rose 0.7% to a record closing high, while the Nasdaq Composite added 1% and also closed at a record peak. The Dow Jones Industrial Average rose 0.29%.

In tandem with the rally, safe-haven assets slipped and slid lower on Tuesday. Gold extended Monday's fall to trade 0.2% weaker at $1545.15 per ounce. Oil prices nursed losses and yields on benchmark U.S. Treasuries rose as prices fell. U.S. crude sat at $58.14 a barrel. Ten-year Treasury note yields rose to 1.8546% compared with its U.S. close of 1.848%.

In currency markets, the Japanese yen weakened past the 110 yen-per-dollar mark while the trade-exposed yuan stood at its highest since July. Besides the trade deal, investors are also looking to U.S. inflation data due later on Tuesday and the beginning of the fourth-quarter U.S. company results season.

Big banks JPMorgan Chase & Co, Citigroup Inc and Wells Fargo & Co are due to report before market open on Tuesday.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION/BLOG/INTERVIEW

Conspiracy theories on COVID 19: Legislators, Scientists, and Journalists all joined the Caravan

Conspiracy theories are not new for virus epidemics. There have been conspiracy theories on HIV-AIDS, Polio Vaccines, Ebola Virus, and several other diseases as well. However, what makes the 2019 Novel Coronavirus different from others is ...

Top 10 Fake News, Myths and Realities on 2019 Novel Coronavirus COVID 19

With nearly 1500 deaths by January 14 and around 65,000 infections in China, the Novel Coronavirus 2019 has become one of the worst health epidemics of the 21st Century. However, 8,573 people have been cured but the rumor mongers are a...

Handling fake news Infodemic in time of Coronavirus epidemic

Social media has provided a platform where everybody can disseminate his her views without any supervision. Its excellent if the message is genuine but misinformation is equally disastrous. Health is such a topic where every Tom and Harry c...

Sentiment Analysis on Budget 2020: Long shot for solution to economic worries?

Industries and individuals alike had high expectations from the government to take tangible steps but the budget 2020 seems to have failed expectations....

Videos

Latest News

Trump''s Guj visit: Committee meets to review preparations

A committee formed to oversee various programs that are part of US President Donald Trumps visit to Gujarat on February 24, held its first meeting at the Circuit House in Ahmedabad on Saturday. The Swagat Samiti is a 10-member committee tha...

Pope moves slain Salvadoran priest, icon for poor, closer to sainthood

A Jesuit priest who was murdered at the threshold of the Salvadoran civil war and who in death became a icon for human rights in rural Latin America was moved a step closer to sainthood by Pope Francis on Saturday.The Vatican said the pope ...

Coronavirus: Govt asks citizens to avoid non-essential travel to Singapore

In furtherance to the travel advisory issued earlier in the wake of the deadly coronavirus outbreak, the government on Saturday advised citizens to avoid all non-essential travel to Singapore. It also said screening at airports is now being...

Israeli police say killed man who attempted Jerusalem stabbing attack

Israeli police shot and killed a man who tried to carry out a stabbing attack in the old city of Jerusalem on Saturday, a spokesman said.The suspect was armed with a knife when he came at police officers, said police spokesman Micky Rosenfe...

Give Feedback