Asian markets jump on hopes of China-US trade deal
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Asian stocks rose sharply on Friday on hopes of a trade deal between the United States and China.
Hong Kong’s Hang Seng jumped 2.6%, China’s Shanghai Composite rose 2.4%, Japan’s Nikkei gained 1.2% and South Korea’s Kopsi rose 3.5%.
Markets moved higher after Bloomberg reported US President Donald Trump wants to reach an agreement with Chinese President Xi Jinping at the Group of 20 nations summit in Argentina later this month.
Mr Trump has asked key US officials to begin drafting potential terms, according to the report.
On Thursday, Mr Trump spoke with his Chinese counterpart and raised the prospect of a deal to end a trade war.
“Just had a long and very good conversation with President Xi Jinping of China. We talked about many subjects, with a heavy emphasis on Trade,” Mr Trump tweeted.
“Those discussions are moving along nicely with meetings being scheduled at the G-20 in Argentina. Also had good discussion on North Korea!”
Just had a long and very good conversation with President Xi Jinping of China. We talked about many subjects, with a heavy emphasis on Trade. Those discussions are moving along nicely with meetings being scheduled at the G-20 in Argentina. Also had good discussion on North Korea!
— Donald J. Trump (@realDonaldTrump) November 1, 2018
In comments to state media, Mr Xi expressed his hopes for a trade deal and said he was willing to meet with Mr Trump in Argentina.
“The two countries’ trade teams should strengthen contact and conduct consultations on issues of concern to both sides, and promote a plan that both can accept to reach a consensus on the China-US trade issue,” Xi said on CCTV state television.
Tai Hui, chief market strategist (Asia Pacific) at JP Morgan Asset Management, told Reuters: “While we are still cautious over a full resolution of recent tensions in the medium term, resumption of dialogue between Washington and Beijing would be good enough to investors for now.
“Hence the next four weeks between the US midterm elections and the G20 meeting in Argentina on 30 November will be important to see how things progress.
“Combined with the prospects of more economic stimulus from China and reasonable valuations in Asian equities, investors could use this opportunity to reload on emerging market and Asia assets.”
The Trump administration has imposed tariffs on $250bn of trade with China this year and has threatened to hit all imports from China, which were worth $505bn last year.
Beijing has hit back with its own duties on US imports.