Asia stocks rose after Trump’s statement

Asia stocks soared on Tuesday (August 27, 2019) as a result of the United States President Donald Trump offering a positive outlook on China and stating that the US and China would be able to reach a trade deal between them. He also said he believes that Beijing looks forward to initiating an agreement.

As a result, Japan’s Nikkei rose 1%. The Shanghai Composite Index added 1.5%, and a further push was given by data justifying that China’s industrial firms returned to profit in July. South Korea’s KOSPI rallied 0.4%. After the drop of 1.3% the previous day, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3%.

Shusuke Yamada, chief Japan FX and equity strategist at Bank of America Merrill Lynch said, “There is still a large element of uncertainty regarding the U.S.-China trade dispute. It remains difficult to foresee a resolution, and this will continue to weigh on equity market sentiment. Apart from the trade war, the equity markets also have to keep an eye on Brexit proceedings, monetary policy of key players such as the European Central Bank and moves in the Chinese yuan.”

Apart from that, crude oil prices recovered to a certain extent after going through losses the previous day as the broader markets started stabilizing. Brent crude futures rallied 0.4% at $58.94 per barrel after losing 1% the previous day.


(Reference: Reuters, Investing.com, moneycontrol.com)

(Image source: DYLAN MARTINEZ – POOL/GETTY IMAGES)