Hope of breakthrough in US-China talks lift Asian shares
The hope that Washington and Beijing will be able to agree on a trade deal buoys equities
Tokyo — Most Asian shares were propped up on Tuesday by the hope that Washington and Beijing may be inching towards a trade deal and that the US Federal Reserve would halt its tightening if economic growth slows further. Japan’s Nikkei rose 0.9% while MSCI’s broadest index of Asia-Pacific shares outside Japan ticked up just 0.1%, although it was dragged down by falls in China and Taiwan. On Wall Street, the S&P 500 gained 0.7% on Monday following 3.4% surge on Friday, with Amazon.com Inc and Netflix leading the rally. Gains in tech names allayed some fears, sparked by Apple’s sales warnings last week, that the high-flying sector is starting to be hurt by the China-US trade war. “Market pessimism has been rolled back, partly helped by hopes as talks between China and the US are under way. But many investors are still trying to play it safe and it is yet to be seen whether the recovery continues, or ends up as a short-term relief rally,” said Masanari Takada, cross-assets strategist a...
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