SINGAPORE (Reuters) – Asian stock markets rose on Tuesday and safe haven assets slipped as signs of goodwill between China and the United States supported optimism for global growth, with the world's two largest economies preparing to formalize a commercial war truce.
FILE PHOTO: A man looks at a board showing stock prices outside a brokerage in Tokyo, Japan on January 6, 2020. REUTERS / Kim Kyung-Hoon
The US Treasury Department said Monday that China should no longer be designated as a currency handler, a label that was applied when the yuan slipped in August. Meanwhile, China has allowed the heavily managed currency to rise to its highest point since July. (CNY /)
The Chinese yuan on the high seas extended strong gains to the dollar on Tuesday morning to a maximum of 5-1 / 2 months, backed by the growing optimism towards the evolution of the Chinese-American trade.
The offshore yuan rose to a maximum of 6.8745 per dollar, the strongest level since July 26.
The measures occur when a high-level Chinese delegation arrived in Washington before the signing of the Phase 1 trade agreement on Wednesday, a step towards escalating a protracted dispute that has damaged the world economy.
The broader MSCI index of Asian and Pacific stocks outside of Japan opened to an all-time high and rose.
Nikkei of Japan added 0.8% and reached its highest point in a month. Australia's S&P / ASX 200 rose 0.7% and reached a new intraday high. Gold fell and the Japanese yen shelter fell to a minimum of seven months.
"The market seems to be fully valuing a signed agreement," said CMC Markets chief strategist in Sydney, Michael McCarthy.
With the text of the agreement still to be finalized, the gains could leave the exposed stock in case something goes wrong, he added, noting the modest volumes of the morning that suggest caution.
"It's buying the rumor, selling the fact … even a delay could see an extremely negative reaction," he said.
The United States trade representative, Robert Lighthizer, told Fox Business on Monday night that the Chinese translation of the agreement text was almost complete.
"We are going to make it public on Wednesday before signing," he said.
During the night, Wall Street reached new closing records, driven by a sharp increase in technological actions, as investors bet that companies such as Facebook Inc, Microsoft and Apple Inc could have more to gain from a global economy in increase. (.NORTH)
The S&P 500 rose 0.7% to a record high, while the Nasdaq Composite added 1% and also closed at a record high. The Dow Jones Industrial Average increased 0.29%.
Along with the rally, safe haven assets slipped and fell on Tuesday. Gold extended Monday's decline to trade 0.2% weaker to $ 1545.15 per ounce. (GOAL /)
Oil prices increased losses and yields on US Treasury bonds. UU. They rose as prices fell. US crude was $ 58.14 per barrel. The yields of ten-year Treasury bonds increased to 1.8546% compared to its close in the United States of 1,848%. (OR)
In the currency markets, the Japanese yen weakened beyond the 110 yen mark per dollar, while the yuan exposed to trade reached its highest level since July. (FRX /)
In addition to the trade agreement, investors are also looking for US inflation data. UU. They expire later on Tuesday and the start of the fourth quarter US results season.
The big banks JPMorgan Chase & Co, Citigroup Inc and Wells Fargo & Co must inform before the market opening on Tuesday.
Tom Westbrook Report in Singapore
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