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Home / Business / Asian stocks rise, US futures rise on hopes of no US government. Shutting down Reuters

Asian stocks rise, US futures rise on hopes of no US government. Shutting down Reuters




© Reuters. A man reflected on an electronic board with a graph analyzing the recent change in the Nikkei stock index before a brokerage in Tokyo

By Hideyuki Sano

TOKYO (Reuters) – Asian equities rallied on Tuesday when Investors hoping for a new round Trade talks between the US and China would help settle a dispute that is affecting global growth and some corporate profits.

The improvement in market sentiment was the news that US legislators had reached a preliminary agreement on the financing of border security, which would prevent another partial closure of the government Saturday. They rose by more than 0.5 percent.

The broadest MSCI index for Asia-Pacific outside Japan increased by 0.3 percent.

The increase increased by 0.6 percent, South Korea rose by 0.4 percent and Australian shares rose by 0.4 percent.

Japan gained 2 percent after a market holiday on Monday, up around a weaker yen.

US. and Chinese officials expressed hope that the new round of talks that began on Monday in Beijing would make them loosen their months-long trade war.

Beijing and Washington are trying to reach a deal before March 1

st. Excluding US $ 200 billion in Chinese imports, 25 percent is expected to increase from 25 percent to 25 percent.

"There will not be a winner in the Trade War, and at some point they are likely to make a deal," said Mutsumi Kagawa, Chief Global Strategist at Rakuten Securities in Tokyo.

The trade dispute has already begun to affect global growth, disrupting business confidence, disrupting factory activity and disrupting supply chains. The concern is that a protracted wage dispute between the US and China could severely affect corporate profits worldwide.

Analysts now expect US corporate earnings to decline 0.2 percent year-on-year for the current quarter, the first decline since the second quarter of 2016.

In the currency market, the dollar held steady, gaining value for eight consecutive sessions against a basket of six major currencies by Monday, the longest rally in two years.

Although the US Federal Reserve's fragile turnaround weighed on the dollar earlier this year, some analysts noted that the US currency still has the highest returns among major currencies peers and that the Fed continues to shrink its balance sheet.

"We see the strength of the dollar essentially in reducing the Fed's balance sheet," said Makoto Noji, chief foreign currency and foreign currency strategist at SMBC Nikko Securities.

Growing signs of global economic momentum have also lifted the US currency, most recently by downgrading the growth of the European Commission in Europe, making the dollar a better default investment opportunity.

The dollar index reached its highest level for almost three months on Monday at 97,123. It was last at 97,042.

In contrast, the euro fell to $ 1.2667, its weakest in 2 1/2 months, and was recently quoted at $ 1.1285.

The dollar climbed to a six-week high of 110.55 yen.

] Oil prices rose after a decline on Monday as traders weighed support from OPEC's supply constraint and a slowdown in the global economy.

Futures traded at $ 52.56 a barrel, up 0.3 percent. rose 0.6 percent to $ 61.87 a barrel.

(This version of the story corrects citations in the 15th paragraph)


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