Sunday , June 20 2021

Asian shares reached their four-month high in US and Chinese trading deals

© Reuters. Pedestrians are reflected in an electronic dashboard showing Japan's Nikkei average, the Dow Jones average, and the average of other non-brokering stocks in Tokyo

From Shinichi Saoshiro and Tomo Uetake

Asian shares reached more than four-month high on Wednesday, raised by the optimism that the United States and China could conclude a deal to resolve their almost annual trade dispute.

MSCI's broadest Asia-Pacific Share Index outside Japan rose 0.6 percent to its highest level since early October, and the average for Japan rose 1.3 percent to an eight-week high.

Chinese and blue chips CSI 300 rose by about 2 percent to multi-month highs, with IT shares making a profit of Beijing's pledge to push for key technologies and innovations.

Asia picked up its Wall Street sign, where everyone and the Nasdaq teamed up about 1.5 percent at night for optimism about US and Chinese trade talks and a cautious agreement with Congress to avoid another partial stoppage of the government.

European stocks were expected to open higher levels, with financial spreads seeing British, French and German companies moving between 0.4 and 0.5 percent.

US President Donald Trump said on Tuesday he could leave the deadline for a trade deal with China on March 1 for a while if the two sides are close to a full deal.

Officials in Washington and Beijing have voiced hope that a round of talks this week will bring them closer to alleviating their seven-month trade war.

"We are currently seeing negative moods that have accumulated as a result of trade disputes and the elimination of US fiscal problems," said Soichiro Mons, Senior Economist at Daiwa SB Investments in Tokyo.

"To move risky assets only with optimism, the US-China Trade Order will have to see some kind of closure in March, and a more durable solution is needed to avoid stopping the US government." It must be remembered that we are is not yet there. "

Congress negotiators from the United States gathered on Monday to avoid another partial closure of the government, a conditional bipartisan border security deal. Trump, however, voiced dissatisfaction with the deal and said he had not yet decided whether to support him.

Cboe's volatility index, Wall Street's "fear gauge", dropped to 14.95 in the night, its lowest level for more than four months.

With the risk aversion to date, government bonds sold with safe haven increased. They increased overnight and reached a weekly peak of 2,700%.

The dollar was in defense as investors shifted their money to more risky assets amid hopes for a US-China trade deal.

The dollar's index against six major currencies remained at 96,667 after its eight-day earnings ended at night to deflect it from the two-month high.

The euro was higher at $ 1.1336, after rising 0.5% on the day before rebounding from the three-month minimum of $ 1.1258.

Compared to the yen, the greenback rose 0.2 percent to 110,705 yen, the highest level for 1-1 / 2 months.

The dollar jumped 1.7 percent to a one-week high of $ 0.6852 after New Zealand's Reserve Bank kept the official interest rate at a record low of 1.75 percent and sounded less decent than the markets had imposed, forcing some short coverage.

In commodities, the futures of the US-based West Texas Intermediate (WTI) rose 1.0 percent to 53.65 dollars a barrel after yesterday climbed 1.3 percent, while international futures rose 1.0 percent to 63, 07 dollars per barrel.

Oil prices rose on Tuesday after OPEC data showed a sharp drop in production in January, and as a leading member Saudi Arabia said it would cut production in March by another 500,000 barrels.

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