Most Asian Stocks Gain As US/China Trade Comments Offer Relief
ASIAN STOCKS, TALKING POINTS:
- Asian stocks posted modest gains, in the main
- US/China trade talks took a much less belligerent tone
- The Euro remains troubled by Italian political developments
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Asian stocks were broadly higher Monday -if not by much- as investors looked with hope to the US/China trade position. Treasury Secretary Steven Mnuchin said over the weekend that the two global titans were putting the trade war “on hold,’ as they worked towards an agreement.
Both countries said they had agreed on the need to substantially reduce the US trade gap with China, although it remains unclear as to exactly how they intend to achieve this.
The US Dollar gained on the Japanese Yen as risk appetite revived to some extent in the currency markets- also boosting the Australian Dollar and its New Zealand counterpart. AUD/USD has broken out of its trading range to the upside, for a change, but remains mired in a broad range.
The Euro was under severe pressure as investors looked to the confirmation of a euro-skeptic Italian government later Monday.
Japanese trade data passed the Yen by. Imports and exports both rose in April, but by less than expected.
The rest of the session promises unusually few new cues with scheduled economic data scant. This is likely to leave old themes in play and the Euro in some trouble.
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--- Written by David Cottle, DailyFX Research
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.