Asian stocks cheer easing trade tensions, Shanghai Composite stuck at 200-hour EMA

• Asian stocks are a sea of green, except Australian shares, which are down 0.4 percent.
• US stocks rallied after the US President Trump indicated potential progress in US-China trade relations.  
• The Shanghai Composite is struggling to cut through 200-hour exponential moving average (EA) hurdle.

Asian stocks are cheering the positive developments in the US-China trade war.

At press time, Japan’s Nikkei is up 254 points or 1.17 percent. Stocks in South Korea and Hong Kong are also flashing green. Shares in Australia, however, are down 0.30 percent.

Major US indices gained 1 percent in the overnight trade after the US President Trump tweet said that negotiations with China are moving along nicely.

The risk-on, however, could be short-lived, as it still is unclear how much progress both parties have made in breaking the deadlock. Further, the S&P 500 futures are down 6 points or 0.25 percent in Asia.

Elsewhere, the Shanghai Composite is struggling to beat the 200-hour EMA hurdle of 2,644. The index witnessed a falling wedge breakout on Oct. 30, putting the bulls in a commanding position. The bull grip would further strengthen if the index finds acceptance above 2,675 (Oct. 22 high).