Asian markets surge as Trump fuels China trade deal hopes.
HONG KONG (AFP) - Asian markets enjoyed another rally on Friday after Donald Trump hailed positive talks with Chinese President Xi Jinping and a report said he had asked officials to draw up a draft bill as he eyes a potential trade deal between the two.
Hong Kong jumped almost four percent in the afternoon, while Shanghai and the yuan soared as dealers seized on the news, hoping for a breakthrough in a standoff that has rocked global equities and fuelled warnings about global growth.
The gains follow a third straight advance on Wall Street as a sense of optimism returns after a diabolical October, with riskier, higher-yielding currencies enjoying a bounce against the dollar, and the pound holding on to most gains.
The optimism spread across the region. Tokyo was up 2.7 percent in the afternoon, Singapore 1.3 percent and Seoul piled on three percent, while Sydney reversed early losses to sit 0.1 percent higher.
Taipei, Bangkok, Mumbai and Jakarta also posted healthy gains.
''Positive comments from President Trump over US-China trade tension are cheering the market in the short term,'' said Tai Hui, chief market strategist for Asia Pacific at JP Morgan Asset Management.
''Dollar moderation, the stabilising trade relationship between US and China and more stimulus from Beijing will be the key ingredients to revive market confidence in Asia.
''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.''
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|Title Annotation:||Business News|
|Date:||Nov 2, 2018|
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