Asian markets gained on the early trading day after the US and China agreed on a break in their customs war at the weekend and agreed to resume trade negotiations.
Following a meeting with China's President Xi Jinping on Saturday at the 20th Summit in Japan, President Donald Trump said that the current tariffs would be maintained but new ones would be put on hold for the time being. Trump said his talks were "even better than expected" and "we're leaving." to work with China, where we left off. "Despite his optimism, the US and China remain anchored in their positions, and it is unclear how long it can take until a final agreement is reached. The two sides have not met for formal negotiations since the talks broke off in early May.
The Japanese Nikkei
NIK, + 2.13%
increased by 1.8%. The Shanghai Association
SHCOMP, + 2.22%
gained 2.1% and the Shenzhen Composite has lower market capitalization
399106, + 3.46%
increased 2.9%. South Korea's Kospi
remained roughly unchanged, while the benchmark indices remained in Taiwan
Y9999, + 1.53%
STI, + 1.41%
JAKIDX, + 0.36%
advanced. Australia's S & P / ASX 200
XJO, + 0.44%
increased by 0.5%. Hong Kong's market was closed for bank holidays.
"After the G-20 spent nearly two months in trade war purgatory and was dusted off, the risk markets reacted to the events on Saturday in a peppy tone," said Stephen Innes. Managing Partner at Vanguard Markets, said Monday in a note. "In fact, the investors have triggered a massive, but exhausted sigh of relief."
"The biggest question they all face is whether a truce will persist or history will repeat itself and set in motion a trade war congestion?" He added.
Under the individual titles Japan Steel
5631, + 5.78%
rose in Tokyo trade. Sony
6758, + 2.35%
and robotics manufacturer Fanuc
6954, + 3.06%
also rose while Rakuten
slipped off. Samsung
and LG Electronics
were in decline in South Korea. Foxconn
2354, + 1.58%
and Taiwan Semiconductor
2330, + 3.97%
Growth in Taiwan and oil exploration
OSH, + 1.13%
rose in Australia.
Wall Street ended positively last week after the Federal Reserve had raised expectations that it is ready to cut interest rates if needed to sustain the economy.
The S & P 500 Index
SPX, + 0.58%
rose 0.6% to 2,941.76. The index ended the month up 6.9%. The Dow Jones Industrial Average
DJIA, + 0.28%
increased by 0.3% to 26,599.96. The Nasdaq composite
COMP, + 0.48%
increased 0.5% to 8,006.24.
Despite the positive news, the latest data was less positive.
A Closely Observed Japanese Central Bank Survey
The Bank of Japan's quarterly Tankan survey released Monday found that the major manufacturers' confidence in the economy worsened in June compared to March The PMI for Manufacturing in China remained stable but declined 49.4 in June, down from 49.4 in June according to the National Bureau of Statistics.
Values over 50 indicate an expansion, while values below 50 reflect a contraction.
benchmark crude oil
CLQ19, + 2.96%
rose 1.21 USD to 59.62 USD per barrel in electronic trading on the New York Mercantile Exchange. On Friday, it fell 96 cents to $ 58.47 a barrel. Brent crude oil
international standard, rose $ 1.34 to $ 66.08 a barrel.
USDJPY, + 0.44%
surged from 107.87 yen on Friday to 108.24 Japanese yen.