© AFP 2018 / PHILIPPE LOPEZ
Stocks have rebounded to their highest point in three weeks on Friday following the Trump administration’s request for a possible trade deal with China. The news has helped to restore confidence in Asian markets, analysts say.
The MSCI Asian index climbed 2.5 percent to its highest point since October 10. Japan’s Nikkei index followed with a 2.4 percent rise and US stock futures increased 0.7 percent, Reuters reported on Friday.
Chinese shares also rose after a strengthened yuan, with Chinese blue-chip companies seeing 3 percent increases alongside a 3.8 percent boost to Beijing’s start-up board.
The Chinese CSI 300 consisting of Shanghai and Shenzhen stocks gained 2.3 percent and Hong Kong’s Hang Seng index also rose 2.1 percent, with a 2.7 percent gain at the start of trading.
Asian shares rallied after the two leaders’ phone call and stronger closing figures, with the Dow and S&P 500 gaining 1.06 percent and Nasdaq Composite strengthening by 1.75 percent.
Several heavyweight conglomerates also gained points, with Hon Hai Precision Industry Co. earning 1.3 percent, Taiwan Semiconductor Manufacturing Co. rising 0.2 percent and Korean tech giant Samsung Electronics Co Ltd also strengthening 3.2 percent.
Gains were also fuelled by Chinese president Xi Jinping’s promise to support private investment on Thursday. The positive news also boosted onshore yuan holdings to two-week highs at RMB6.9294 to the dollar and offshore rates at roughly RMB6.9264.
US president Donald Trump reached out to President Xi via “a long and very good conversation” on Thursday, with the two leaders reaffirming their optimism on Thursday for negotiations to resolve ongoing trade disagreements.
The American head of state hopes to strike the trade deal on the sidelines of the upcoming G20 summit in Argentina later this month.
“While we are still cautious over a full resolution of recent tensions in the medium term, resumption of dialogue between Washington and Beijing would be good enough to investors for now,” Tai Jui, JPMorgan Asset Management strategist told Reuters. Both a stabilizing