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  • Asian shares rise as US-China diplomats discuss economic and trade issues.
  • Japan is near to lifting the state of emergency, Europe is progressing on the way.
  • A light economic calendar keeps trade/virus news in the driver’s seat.
  • US NFP expected to print -20000K, Unemployment Rate could rise to 14%.

With the US-China trade talks back in motion, risks gain a fresh bid during Friday’s Asian session. Also supporting the market’s risk-on sentiment could be the gradual re-opening of the major economies after the coronavirus (COVID-19) led lockdown.

Thursday’s Bloomberg news renewed trade optimism by suggesting that top diplomats from the US and China are to discuss the deal early next week.

The upbeat mood got a boost early on Friday after Xinhua said that the US and China agreed to remain in communication and cooperation.

Additionally, Japanese Economy Minister Yasutoshi Nishimura said that lifting the state of emergency is within sight.

Amid all these plays, markets ignored North Korea’s criticism of the South’s military drill.

While portraying the trading sentiment, MSCI’s Asia-Pacific index of shares outside Japan register 1.15% gains whereas Japan’s NIKKEI rise 2.25% to 20,120 by the time of writing.

It should also be noted that the US 10-year Treasury yields returned to the positive area after marking losses the previous day whereas the stock future is also up around 1.0% by the press time.

Further, stocks in India stay green over 1.0% while those from China follow the footsteps. Australia’s ASX 200 and New Zealand’s NZX 50 also could ignore the downbeat RBA statement of monetary policy due to the US-China optimism.

Moving on, markets are likely to portray the pre-NFP lull amid the UK’s holiday and no major data ahead of the US April month jobs report. Market consensus suggests that the Nonfarm Payrolls (NFP) may drop by -20000K versus -701K prior whereas Unemployment Rate could spike to 14% from 4.4%.