Home world Asian markets mostly higher on optimism about US-China deal

banneraliexp

Asian markets mostly higher on optimism about US-China deal

by Ace Damon
Asian markets mostly higher on optimism about US-China deal

TOKYO (Reuters) – Global equities increased mainly on optimism over a US-China trade deal as regional markets opened the first day of trading on Thursday.

France's CAC 40 jumped 0.8% to 6,022.63 at the start of trading, while Germany's DAX changed little, falling less than 0.1% to 13,238.78. Britain's FTSE 100 was up 0.8% to 7,604.80.

US equities are expected to rise further, with Dow futures rising 0.4% to 28,634. S&P; 500 futures also rose 0.4% at 3,243.80

S&P from Australia; The ASX 200 rose 0.1% to 6,690.60, while the South Korean Kospi lost 1.0% to 2,175.17. Hong Kong's Hang Seng jumped 1.1% to 28,511.92 while Shanghai Composite jumped 1.2% to 3,085.20. Tokyo was still closed for the New Year holidays.

Regional market sentiment is on the rise after President Donald Trump said an initial trade deal with China would be signed later this month. The "Phase 1" trade agreement requires the US to reduce tariffs and China to buy larger quantities of US agricultural products.

Weighing in on optimism, it was announced earlier this week by North Korean leader Kim Jong Un that his country will soon unveil a new strategic weapon and that North Korea was no longer obliged to maintain a self-imposed suspension of weapon testing. nuclear and intercontinental ballistic missiles.

But some market watchers said Kim's comments were not specific enough to dampen optimism.

"The clear lack of detail about the threat itself and the timing, as well as the evident desensitized state of the market in previous tests, support this lack of reaction," said Jingyi Pan, IG's market strategist in Singapore.

In addition to optimism, China's central bank announcement on Wednesday will reduce the amount of money banks are expected to have in hand from January 6 in an effort to boost the economic slowdown.

The People's Bank of China said the reserve requirement ratio for financial institutions would be reduced by 50 basis points, a move that should free about 800 billion yuan ($ 114.6 billion) in the economy for lending purposes.

This will boost the economy ahead of the Lunar New Year on 25 January. Companies and individuals typically need large amounts of cash during China's most important annual holiday to pay bonuses, settle debts and cover other expenses.

Negotiations in the US were closed on Wednesday for the New Year holidays and opened on Thursday.

On Tuesday, the last trading day for 2019, the S&P; 500 rose 9.49 points, or 0.3%, to 3,230.78. The Dow gained 76.30 points, or 0.3%, to 28,538.44. The Nasdaq rose 26.61 points, or 0.3%, to 8,972.60.

The Russell 2000 index rose 4.32 points, or 0.3%, to 1,668.47. The index ended the year with gain of 23.7%.

Wall Street closed the books at a box office hit in 2019 for stock investors, with the broader market delivering its best returns in six years.

The S&P; 500 ended with a gain of 28.9% in the year, or a total return of 31.5% including dividends. Nasdaq compound grew 35.3%. For both indices, it was the best annual performance since 2013. Technology inventories helped drive these gains by increasing 48%. The Dow Jones Industrial Average gained 22.3%, led by Apple.

ENERGY: US reference crude gained 27 cents to $ 61.33 a barrel. The company lost 62 cents and reached $ 61.06 a barrel on Tuesday. International standard Brent crude rose 36 cents to $ 66.36 a barrel.

CURRENCIES: The dollar rose to 108.81 yen from 108.53 yen. It fell from $ 1.1231 to $ 1.1209.

Subscribe to daily newsletters

Copyright © 2020 The Washington Times, LLC.

bannerebay

Related Articles

Leave a Comment

18 + 17 =

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More