Asian Stocks Post Broad Gains On US Earnings, Trade Hopes
ASIAN STOCKS TALKING POINTS:
- Most Asian stock markets rose on Friday
- A decent US tailwind and some hopes on the trade front helped
- The US Dollar slipped back a little as risk appetite revived
The DailyFX Third-Quarter Fundamental and Technical Forecasts are out now,
Most Asia Pacific stocks managed gains Friday, following on from an earnings-led rebound in US markets and hopes that China and the US may yet be able to avoid trade war.
White House economic advisor Larry Kudlow confirmed in a television interview earlier reports saying that the two countries will participate in a fresh round of trade talks later this month. There was a broad rise for stocks across the region, although the Shanghai Composite missed out, with the pharmaceutical sector reportedly under pressure.
The US Dollar slipped back as the trade news ignited a modest risk appetite revival. This boosted the Australian Dollar, which had initially slipped very modestly following semiannual Parliamentary testimony from Reserve Bank of Australia Governor Philip Lowe. He stuck very much to the central bank’s familiar script, suggesting that the next interest rate move, when it comes, will probably still be a rise but cautioning that there was ‘no case’ for any shift at all in the near future.
AUD/USD remains right in the center of the long downtrend channel, which has contained trade since the start of this year. However, it could be set for some probably brief respite as it remains above the lows of the past week.
The economic data slate is a little light for the rest of Friday, but it’s not completely devoid of likely investor interest. Canadian consumer price numbers are coming up, as is the latest Eurozone current account release. The University of Michigan’s consumer sentiment index will round out the global session.
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--- Written by David Cottle, DailyFX Research
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