Asian stocks extend rally to 19-month top as US-China near trade deal
- Positive signals for the phase-two deal, nearness to phase-one signing in please Asian traders.
- The absence of the US-Iran war favors the risk-on.
- Lack of data/events, Japan off restrict the market’s reaction.
Expectations of an upbeat start to the phase-two deal talks between the US and China, not to forget nearness to the phase-one signing in ceremony, mainly propel the market’s risk sentiment off-late. Also contributing to the equities’ run-up was the absence of the US-Iran was despite Tehran’s repeated attacks on the US military bases in Iraq.
Not only trade-positive comments from White House Economic Adviser Larry Kudlow and the US Treasury Secretary Steve Mnuchin but an absence of negative statements from China’s Global Times (GT) also favored the Bulls.
While portraying the risk-on, the MSCI’s broadest index of the Asia-Pacific shares excluding Japan rises 0.75% to 708.66 by the press time of the pre-European session on Monday. Japanese markets are off today due to the Coming-of-Age Day holiday.
Markets in Australia might have been focusing on the S&P report that said to hold Australia’s AAA rating despite the recent bushfires while that of New Zealand struggles between the gains and losses.
Moving on, equity indices from China, Hong Kong and India are near 0.50% in positive territory by the time of writing whereas S&P 500 Futures mark 0.30% gains to 3,275. The US 10-year treasury yields remain inactive amid Japan’s off.