Stocks Surge on US-China Trade Deal Progress
US equity futures experienced gains in early Asian trading following signals from the US and China that they are close to finalising a comprehensive trade agreement. This development coincides with President Donald Trump’s visit to the region for diplomatic discussions. S&P 500 futures rose by 0.7 per cent, while futures for Japan, Australia, and Hong Kong indicated positive movement. On Friday, the US benchmark closed 0.8 per cent higher, and the Nasdaq 100 increased by 1 per cent, both reaching new closing highs, as did an MSCI gauge of global stocks. Oil prices also saw an increase.
The Australian and New Zealand dollars saw slight increases in early Asian trading on Monday. The US dollar showed mixed performance against other major currencies. These movements reflected investor enthusiasm over the potential trade accord between the world’s two largest economies. Top negotiators from both countries have reported reaching agreements on several contentious issues, paving the way for a potential deal.
The agreement follows two days of talks in Malaysia that concluded on Sunday. According to a Chinese official, the countries achieved a preliminary consensus on key topics, including export controls, fentanyl, and shipping levies.
However, Sean Keane, chief Asia Pacific strategist at JB Drax Honore Singapore, cautioned in a note to clients, “This looks like more of a de-escalation rather than a new dawn,” suggesting a measured outlook despite the positive developments.
Post Views: 1
