Asian stocks traded mostly higher on Friday, just hours ahead of a deadline for a possible increase on Chinese goods.
Underlying sentiment remained supported somewhat after U.S. President Donald Trump said his Chinese counterpart Xi Jinping wrote him a ‘beautiful letter’ and there is still a chance to salvage trade negotiations to resolve a year-long dispute.
The dollar edged lower as mild inflation data weighed on 10-year Treasury yields. Oil prices rose over 1 percent amid renewed optimism that a trade deal could be struck between Washington and Beijing.
China’s Shanghai Composite index was rallying 1.2 percent and the yuan strengthened, as the U.S. and China continue talks for a second day to rescue a trade deal that is close to collapsing. Hong Kong’s Hang Seng index was up 0.4 percent.
Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin are expected to resume talks today after reportedly holding talks for 90 minutes on Thursday.
Japan’s Nikkei index was moving up 0.7 percent as the dollar crawled back from a three-month low versus the yen.
Australia’s benchmark S&P/ASX 200 was little changed after the release of RBA’s monetary policy statement showing slowing growth in the domestic economy.
South Korea’s Kospi average was up 0.1 percent and New Zealand shares were marginally higher on hopes the U.S. and Chinese negotiators will reach an eleventh-hour solution before the trade war escalates at midnight.
Overnight, U.S. stocks ended modestly lower as investors remained worried about a sharp escalation in the U.S.-China trade dispute. The Dow shed half a percent, the tech-heavy Nasdaq Composite slipped 0.4 percent and the S&P 500 eased 0.3 percent.
European markets tumbled on Thursday ahead of U.S.-China trade talks. The pan European Stoxx 600 gave up 1.7 percent.
The German DAX