Asian Markets Gain On Xi Jinping Speech, Trade To Remain Key
- Chinese President Xi Jinping sounded more amenable to trade liberalisation
- Asian markets gained broadly after he spoke, and held their gains
- The US Dollar also rose against the Japanese Yen
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Asian stocks rose Tuesday as Chinese President Xi Jinping made apparently conciliatory comments on trade, raising hopes that Washington and Beijing can sort out simmering differences.
Speaking at the Boao Forum for Asia in Hainan, Xi brought up measures including lowering tariffs on cars and protecting intellectual property rights. President Donald Trump Tweeted last Friday his expectation that China would lower trade barriers, although he also criticized the country in a separate offering.
Still, Xi’s words have given the markets hope. The Nikkei 225 rose 0.5% with the ASX 200 up by 0.8% and all other major Asia Pacific bourses well in the green. They also led to broad risk appetite revival across markets. The US Dollar was higher against the Japanese Yen as haven assets found themselves less in demand. This impulse also saw gold prices a little lower.
Crude oil prices had been hit last week by worries over global trade. They rose Tuesday too.
There’s very little of consequence on the economic data schedule for the rest of the day, with only Canadian housing starts likely to grab much attention.
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--- Written by David Cottle, DailyFX Research
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