Asian stocks rise ahead of US-China trade talks
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Asian stocks rise ahead of US-China trade talks

  • Asian equities are flashing green with investors eyeing the US-China trade talks.  
  • The risk appetite may weaken in Europe, courtesy of Brexit concerns.  

Asian stocks are better bid with investors mulling the upcoming US-China trade talks

Japan’s Nikkei is currently trading 1.15% higher on the day. Benchmarks in South Korea, New Zealand, and South Korea are also flashing green. Meanwhile, Hong Kong’s Hang Seng is adding 1.34% and Australia’s S&P/ASX 200 is reporting a 0.46% gain.

The Shanghai Composite index is currently up 0.88%, having opened on a flat note after a week-long holiday. The futures on the S&P 500 are also reporting a 0.40% gain.

All eyes on trade talks

Chinese Vice Premier Liu He and People’s Bank of China Governor Yi Gang are among officials heading to Washington to resume talks with their US counterparts.

China has made clear that it wants to reach a partial trade  deal and set  out  a timetable for the harder issues to be worked  out  next year. President Trump has reportedly said that he would be ready to consider an interim agreement, but is more in favor of reaching a “whole deal.” All-in-all, the bar of expectations has been set low.

Brexit concerns linger

The news hit the wires via Spectator in the Asian trading hours that Britain’s Prime Minister Boris Johnson is preparing for Brexit talks to collapse and would try to avoid delaying Brexit by getting a European Union (EU) country to veto one and by offering rewards to any country opposing an extension to negotiations.  

The European leaders are already casting doubt on reaching Brexit agreement in time for the U.K.’s Oct. 31 deadline.

The lingering Brexit concerns may play spoilsport in Europe, pushing the riskier assets lower, in which case, the anti-risk assets like the Japanese Yen and Gold may pick up a strong bid.

As of writing, the USD/JPY pair is trading at 107.38, representing 0.13% gains on the day. Meanwhile, Gold is currently trading near $1,490 per Oz, representing marginal losses on the day.

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