Asian stock markets mostly rise on positive news

“China announced it would resume trade talks with the US in Washington next month.”

Most Asian equities and currencies rallied today, building on the previous day’s advance as investors were cheered by a number of positive developments on trade, Hong Kong and Europe.

Markets were already on an upward trajectory after the leader of Hong Kong withdrew a controversial extradition bill that had sparked months of sometimes violent protests in the financial hub.

But the good news kept coming as the day wore on, with news that Italy had formed a new moderate, pro-European government, while British MPs moved closer to passing a law preventing a no-deal Brexit.

Then on Thursday morning, China announced it would resume trade talks with the US in Washington next month. The announcement provided a small sign of progress in the long-running row that has dragged on the global economy and stock markets.

Asian equities were broadly in positive territory, tracking a healthy lead from Wall Street, where the S&P 500 moved to within touching distance of a new record high.

Tokyo ended more than two percent higher and Shanghai jumped 1%, with Sydney 0.9% up.

Seoul gained 0.8%, Singapore 0.3%, and Taipei and Wellington 0.9% each. Manila, Bangkok and Jakarta were also well in positive territory.

However, Hong Kong ended with marginal losses. Having soared almost four percent on Wednesday on the back of Chief Executive Carrie Lam’s shock decision to withdraw the bill, profit-takers moved in, while there was also some concern the offer will not be enough to avert more unrest.

SOURCE: Agence France-Presse