Atheer – External Sources
Asian share markets sprang higher on Tuesday, as reports of talks between the US and China rekindled hopes that a damaging trade war could be averted, in turn sapping life from the dollar and yen.
Reuters reported that Japan’s Nikkei enjoyed its best day in almost three months, jumping 2.3 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan rose almost one percent, while China blue chips increased 0.9 percent.
Futures for the FTSE rose 1.2 percent and spread betters pointed to steep gains for other European bourses, while E-Mini futures for the S&P 500 firmed 0.3 percent.
This came following reports that Chinese and US officials were busy negotiating to avert an all-out trade war.
White House officials are asking China to cut tariffs on imported cars, allow foreign majority ownership of financial services firms and buy more US-made semiconductors.
Chinese Premier Li Keqiang on Monday pledged to maintain trade negotiations and ease access to American businesses.
“The recent escalation may have simply been a negotiating tactic that will end in a compromise,” wrote analysts at JPMorgan.
“This would be consistent with the pattern around the steel/aluminum tariffs and is the interpretation that many market commentators are favouring.”
They warned however that it was too early to say for sure, given that President Donald Trump has had deeply held views on fair trade for decades.