Asian markets rose slightly in early trading Tuesday after encouraging news about U.S.-China trade talks.
President Donald Trump on Monday said “the deal with China is coming along very well. They have to make a deal because their supply chain is going down the tubes.” That follows comments Saturday by China’s top trade negotiator, Vice Premier Liu He, who said “substantial progress” has been made toward a phase-one agreement. U.S. Trade Rep. Robert Lighthizer said Monday that he is aiming for a phase-one deal to be signed by Trump and China’s President Xi Jinping in mid-November at the Asia-Pacific Economic Cooperation summit in Chile.
“Unlike previous trade talks where expectations centered on the view that something is better than nothing, this time around there appears to be a tangible and workable roadmap in place which is supported by official confirmation that the U.S. and China were both on the same page about the intent to work towards Phase 1 of a ‘deal’ by mid-November,” Stephen Innes, Asia Pacific market strategist for AxiTrader, wrote in a note. “And the fact that Phase 2 is even being discussed at this time, which contains ‘actual meat’ according to United States Secretary of Commerce, suggesting that both U.S. and China may have finally found a bridge that isn’t too far.”
Hong Kong’s Hang Seng Index HSI, +0.21% advanced 0.2%, the Shanghai Composite SHCOMP, -0.09% was about flat, while the Shenzhen Composite 399106, +0.15% rose 0.%. South Korea’s Kospi 180721, +1.17% gained 1.1% and benchmark indexes in Taiwan Y9999, +0.50% , Singapore STI, +0.81% and Indonesia JAKIDX, +0.07% made gains. Australia’s S&P/ASX XJO, +0.39% was up 0.3%. Japan’s Nikkei was closed for a holiday.
Among individual stocks, Apple component maker AAC 2018, +5.32% surged in Hong Kong, and Geely Automobile 175, +3.96% and Sands China 1928, +2.87% advanced as well. Samsung 005930, +1.99% and chip maker SK Hynix 000660, +2.19% rose in South Korea, while Rio Tinto BHP, +1.06% and Beach Energy BPT, +0.87% gained in Australia.