Asian stocks recover despite tariff talks as Pacific risk sentiment recovers

• Investors’ mood has swung risk-on for Tuesday despite the previous US session’s bearish lean.
• Trade war talk remains a focal point, but traders are hoping for a last-minute solution.

Equities within the Pacific-Asia sector are recovering through Tuesday’s action, reversing a mild bearish push that started in Monday’s late US market session following US President Donald Trump’s reaffirmation that he has no intention of easing off of his plan to further hike tariff rates on China beginning in January.

Investor sentiment is largely on-balance for Tuesday’s Asian stock indexes, though market sentiment may be underpinned by growing hopes that despite the curt rhetoric and social media antics of US President Trump, the beginnings of a workable trade deal between the US and China might be found following the Trump-Xi sideline meeting at the upcoming G20 summit, which begins November 30th.

Japanese stocks are moderately well-bid, with the Nikkei 225 and Tokyo Topix index both up around 0.90%, with Australia recovering ground following Monday’s declines, climbing a full 1.00% heading into the index’s market close; emerging markets are also catching some hopeful buying action, with the MSCI broad Asia-Pacific (excluding Japan) index climbing 0.45% for Tuesday.

Investor sentiment remains slightly more restrained in the Chinese bourses, with trade war rhetoric focused squarely on their domestic economy, but China’s major indexes are still in the green for the day, with the Hong Kong Hang Seng index slightly up around 0.05% and the Shanghai Shenzen CSI 300 approaching 0.40%.

Nikkei 225 Technical Levels