- Asian indexes see late-day rebounds to cap off Tuesday.
- Investor hopes for a peaceable trade war resolution are back on the cards in the run-up to the Trump-Xi G20 sideline meeting at the end of November.
Asian equities are rebounding into the tail-end of Tuesday’s Pacific market session, with indexes across the sector seeing gains on the day as investor sentiment swings back to the positive on hopes that extra effort put forth by the US at the upcoming G20 summit at the end of November will see tactile results in the US-China trade spat.
At the November 30th – December 1st G20 summit, US President Donald Trump and China’s Xi Jinping will be having a sideline meeting, where the topic of weight will now be US-China trade negotiations, even though the US administration recently stated that they were considering striking any talk of trade from Trump’s playbook for the event. With renewed threats of further tariffs on Chinese goods should the Trump-Xi meeting fail to produce results, stocks are rebounding in hopes that a last-minute aversion will be seen in the ongoing trade tensions.
Japan’s Nikkei 225 is up 1.57% on the day, clipping into 21,480.00, with Tokyo’s Topix index up 1.33%; Hong Kong’s Hang Seng index remains subdued in after-hours trading, closing in the green for 0.25% on the day, while Shanghai’s CSI 300 index clears 1.75% in gains on the day. Australia’s ASX 200 is also rebounding, ending Tuesday at 1.34%, although emerging markets remain weak-footed, with the broad Asia-Pacific MSCI index down on the day, in the red by -0.55%.
Nikkei levels to watch
The Nikkei’s technical outing remains largely unchanged in the broader scheme of things, with the bourse continuing to see constraining action near 21.440.00 despite clipping into a new high for the week briefly near 21.560.00, and the pair’s rough consolidation pattern over the past four trading days sees the index building support at the 21,000.00 major technical handle, with the week’s low of 21,790.00 acting as the current floor.
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