Reuters: Asian stocks hit six-week high on trade war hopes ahead of ECB12 September 2019 | 06:00 | FOCUS News Agency
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.4% and Japan’s Nikkei stock index rose 0.88%. Australian shares were up 0.56%.
Chinese stocks rose and the yuan hit a three-week high after U.S. President Donald Trump agreed to delay an additional increase in tariffs on Chinese goods by two weeks at the request of China’s Vice Premier Liu He “as a gesture of good will.”
U.S. stock futures jumped 0.42% and safe-havens such as the yen, U.S. Treasuries, and gold weakened in a sign of improving appetite for risk.
“Trump’s comments are likely to put a little juice in the market, but it could be gone tomorrow,” said Hugh Dive, chief investment officer at Atlas Funds Management in Sydney.
“Some in the market react to small changes in negotiating positions because Trump is negotiating in the open. I’m more concerned about Brexit, because there is some complacency in the EU about this.”
Oil prices rose in Asia, rebounding from a tumble on Wednesday, on hopes OPEC members will cut output to support prices.
Any easing of concerns about the bruising trade war is likely to help equities extend their rally this month after a tumultuous August.
Investors also await an ECB meeting later on Thursday to see how far policymakers will go to support a flagging economy, given the risks posed by Britain’s divorce from the European Union, commonly referred to as Brexit.
The S&P 500 ended 0.72% higher in New York on Wednesday.
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