US-Canada Nafta deal lights up Canadian dollar, Mexican peso
Japanese shares were also cheered by the news, but the US-China trade war still casts a shadow
Tokyo — The Canadian dollar and the Mexican peso rose and Japanese shares hit fresh 27-year highs on Monday, after the US and Canada reached a framework deal to update the North American Free Trade Agreement (Nafta). A Canadian source confirmed the two countries reached a deal, with Canada agreeing to a side-letter arrangement effectively capping vehicle exports to the US. Japan's Nikkei rose as much as 0.8% to climb a tad above the 27-year high reached on Friday, and it ended the morning session 0.6% ahead. US stock futures gained 0.5%. Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities, said Nafta was Washington's second largest trade issue, after China. "Investors will likely view the latest agreement positively, a sign that trade disputes are easing outside China-US talks," he said. MSCI's broadest index of Asia-Pacific shares outside Japan was softer, falling 0.15%. Regional volumes are likely to be light, due to holidays in China, includin...
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