Recently, the shares in Asia-Pacific climbed on news that U.S. and China have agreed for a phase one trade agreement in principle, pending President Donald Trump’s sanction. Japanese stocks climbed during morning trade. The Nikkei 225 index advanced by 2.35% since shares of Fast Retailing soared over 3.5%. The Topix index jumped 1.52%. In the meantime, the BoJ’s (Bank of Japan) “tankan” survey released showed that the business confidence amongst the country’s manufacturers dived to its lowest stage in over 6 Years. Hang Seng index in Hong Kong also jumped 2.06% since shares of HSBC and Tencent soared over 2% each.
Chinese stocks rose, with the Shanghai Composite and the Shenzhen Component both climbing by 1% each. The Shenzhen Composite also recovered 1.02%. The Kospi index in South Korea also reported strong gains as it was trading 1.32% higher, with shares of chip manufacturer SK Hynix skyrocketing by over 5%. The shares in Australia also recovered, as the S&P/ASX 200 index gained 0.53%, with shares of BHP jumping over 2%. In general, the MSCI Asia index—excluding Japan—surged 1.49% higher. These moves came in the midst of US-China trade optimism.
On a similar note, recently Trump signed a phase one trade deal, avoiding major December 15 tariffs deadline. This step came after negotiators from both the countries agreed-upon terms, as reported by Bloomberg. China and the U.S. agreed-upon conditions for the so-called phase one deal, with Trump approving the deal, causing Wall Street financiers to rejoice. Following months of ongoing conciliations to work out the terms of the phase one deal—that was first declared in October—the news drove the stock market higher to new records: The Dow Jones Average and S&P 500 were both up by almost 0.80%. As reported by Bloomberg, the deal includes assurance by China to purchase more U.S. farm goods.