Asian shares reach 8-month highs as US-China talks progress

Asian shares have paused near eight-month highs on Thursday, as investors keep their eyes peeled for updates on trade talks between the US and China.

US-China trade talks Source: Bloomberg

Top US and Chinese officials have been reported to be moving closer to signing a deal, nudging bond yields higher globally and softening the safe-haven yen.

It also comes after MSCI’s broadest index of Asia-Pacific shares outside Japan paused after reaching its highest since late August. Japan’s Nikkei was also flat to stay near a recent one-month top.

US-China trade talks boost global shares

According to Bloomberg reports on Thursday, the US intends to set a 2025 target for China to meet trade pledges. Risk sentiment was boosted this week off the back of the media reports.

As part of the target plan, China would commit to buy more US commodities, including soybeans and energy products, while also allowing full foreign ownership of US companies operating in China as a binding pledge.

It comes after reports on Wednesday in the Financial Times showed the US and China were closer to reaching a final trade agreement, according to FT sources.

World stocks also rose for a fifth session on Wednesday amid U.S.-China trade talks optimism.

Wall Street edged higher overnight, extending a strong start to the quarter. Chipmaker shares provided a boost to the broader market. The Dow rose 0.15%, while the S&P 500 gained 0.21% and the Nasdaq 0.6%.

Currency market moves

All the major currencies gained on the safe-haven yen with the Australian dollar touching a five-week high.

The greenback eased against a basket of currencies to $97.031, while the euro edged up to $1.1246 , reaching a two-week top on the yen at 125.45 .

Meanwhile, Sterling gained to $1.3179 off the back of Brexit progress, as prime minister Theresa May held talks with the opposition party.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Bid
Offer
-
-
China 300
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.