· Wall Street advanced on Friday as both Washington and Beijing made positive comments on the potential for a trade deal between the world’s two biggest economies and upbeat domestic economic data helped to ease investor worries.
The Dow Jones Industrial Average .DJI rose 109.33 points, or 0.39%, to 27,875.62, the S&P 500 .SPX gained 6.75 points, or 0.22%, to 3,110.29 and the Nasdaq Composite .IXIC added 13.67 points, or 0.16%, to 8,519.89.
U.S. President Donald Trump told Fox News a trade deal was “potentially very close” following remarks by President Xi Jinping that Beijing wanted to work out an initial agreement.
The S&P 500 and the Dow showed their biggest daily gains in a lackluster week marked by uncertainty, with a report suggesting the delay of a trade truce to 2020 and U.S. lawmakers passing two bills supporting protesters in Hong Kong, which could complicate U.S.-China talks.
Strategists said it helped that Trump was vague on Friday about whether he would sign or veto the bills.
· European stocks closed in positive territory on Friday as investor optimism was largely lifted by developments in ongoing U.S.-China trade negotiations.
The pan-European Stoxx 600 was provisionally 0.4% higher at the closing bell, with positive news on the trade war outweighing weak economic data out of the euro zone. Basic resources stocks added 1.8% to lead gains as most sectors and major bourses advanced.
Against the backdrop of ongoing trade negotiations, tensions between the world’s two largest economies have come under strain this week over a U.S. bill supporting Hong Kong protesters, while U.S. Navy warships twice sailed near islands in the South China Sea over the past few days, further angering Beijing.
However, market sentiment was lifted Friday after U.S. President Donald Trump said China and the U.S. were nearing a trade deal.
· Shares in Asia traded higher Monday morning, as investors await market reaction to Hong Kong’s district council elections amid months of civil unrest in the city.
The Nikkei 225 in Japan rose 0.79% in early trade, with shares of index heavyweights Fast Retailing, Softbank Group and Fanuc all seeing gains.
South Korea’s Kospi also gained 0.93% as shares of industry heavyweight Samsung Electronics and chipmaker SK Hynix both gained more than 1% each.
Meanwhile, stocks in Australia edged higher in morning trade, as the S&P/ASX 200 gained about 0.6%.
Overall, the MSCI Asia ex-Japan index traded 0.27% higher.
Investors will watch for market reaction to district council elections in Hong Kong, after pro-democracy candidates surged to a landslide victory following a record voter turnout, Reuters reported.
Reference: CNBC, Reuters
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