Asian shares jump on 'very good' trade talks, pound edges up

LONDON (Reuters) – World shares on Friday basked in optimism for a detente in the U.S.-China trade war and hopes that Britain was moving closer to a smooth exit from the European Union.

FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, October 10, 2019. REUTERS/Staff/File Photo

MSCI world equity index .MIWD00000PUS, which tracks shares in 47 countries, gained 0.4% to head toward its first weekly gain in four weeks. The broader Euro STOXX 600 also jumped 0.6%, led by a 1.1% gain for the main index in Frankfurt .GDAXI

Asian shares had rallied earlier, with an index of Asia-Pacific shares outside Japan .MIAPJ0000PUS climbing 1.3%. The positive mood was set to spread to the U.S., too, where Wall Street futures gauges EScv1NQcv1 were up between 0.4%-0.6%.

The improvement in appetite for riskier bets came after U.S. President Donald Trump on Thursday called the first day of trade talks with China in over two months “very, very good.”

The talks between U.S. and Chinese negotiators fed hopes that the two sides could dial down the 15-month trade war that has upset financial markets and supply chains across the world, and delay a U.S. tariff hike scheduled for next week.

Trump reiterated plans to meet China’s Vice Premier Liu He on Friday at the White House.

Expectations of progress on Thursday had pushed up U.S. markets, with Wall Street .DJI.SPX gaining around 0.6%.

Yet investors said markets were hoping for, at best, a deal limited in scope, and they noted that sunny rhetoric had in the past failed to translate into more meaningful moves.

“I would caution that we have been here before, where we have seen positive talk,” said Mike Bell, global market strategist at J.P. Morgan Asset Management.

“It’s possible they

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