· Asian share markets edged higher on Tuesday and Europe looked set to follow as investors awaited a speech by President Donald Trump on U.S. trade policy and on news he will likely delay a decision on whether to slap tariffs on European autos.
MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.5%, following a sharp 1.2% pullback on Monday.
· Japanese stocks rose on Tuesday by the most in a week on hopes that a weaker yen will support the earnings of the country’s major exporters.
The Nikkei index ended up 0.81% at 23,520.01 points, its biggest daily gain since Nov. 5.
Japanese stocks initially started on the back foot amid uncertainty over the progress of U.S.-China trade talks and an escalation of violence in Hong Kong, but local shares gradually shook off these concerns.
The yen traded near a five-month low versus the dollar, which tends to benefit exporters because a weaker currency helps export competitiveness and inflates earnings repatriated from overseas.
· Shares in Shanghai ended firmer on Tuesday, after having dithered either side of flat, ahead of a key speech by U.S. President Donald Trump at the Economic Club of New York that may offer clues on the likelihood of a trade deal with China.
At the close, the Shanghai Composite index ticked up 0.2% to 2,914.82 points, while the blue-chip CSI300 index finished the session at 3903.69, largely unchanged from Monday’s close.
The market maintained a cautious stance awaiting clues on the Sino-U.S. phase-one trade deal, ahead of a speech by U.S. President Trump at the Economic Club of New York scheduled for later in the day.
· European stocks traded cautiously higher on Tuesday morning after reports suggested U.S. President Donald Trump is expected to delay a decision on whether to impose tariffs on EU autos by six months.
The pan-European Stoxx 600 rose by 0.2% in early deals, with auto climbing 0.7% to lead gains as most sectors and major bourses edged into positive territory.
Market sentiment has been lifted slightly after reports that President Trump would announce a delay to EU auto tariffs this week, potentially averting another damaging dispute with a major U.S. trading partner.
Stocks in Asia were mixed on Tuesday afternoon as concerns over the state of U.S.-China trade discussions and an escalation of violence in Hong Kong weighed on markets.
Investors continue to await direction on trade talks between Washington and Beijing after President Trump on Friday denied claims by the Chinese Commerce Ministry that the two sides had agreed to roll back existing tariffs on each other’s goods.
Back in Europe, the upcoming British general election took a turn after Brexit Party leader Nigel Farage agreed for his party to stand aside in 317 seats held by Prime Minister Boris Johnson’s ruling Conservative party, in a bid to prevent anti-Brexit lawmakers winning control of parliament. Sterling rallied on the news as investors anticipate that the move will seal an election victory for the prime minister.
Reference: Reuters, CNBC
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