Asian stocks traded higher on Tuesday as investors watched eighth component after a recent escalation of tensions on the trade front between the US and China component rose 1.28%. The Shenzhen Composite gained 1.207%. Hong Kong's Hang Seng Index remained largely unchanged.
The Japanese Nikkei 225 gained 1.25% in morning trade, while the index heavyweight and conglomerate Softbank Group gained 2.76%. The Topix also gained 1.03%.
South Korean Kospi gained 0.91%, while chipmaker SK Hynix gained 1.81%. Australia's S & P / ASX 200 gained 0.33%.
Overall, the MSCI Asia ex-Japan index rose 0.33%.
US-China Trade Watch
Investors will be watching developments on the ongoing trade war between Beijing and Washington. US President Donald Trump said Monday that US trade officials received calls from the Chinese over night that Beijing was ready to return to the negotiating table.
The Chinese Foreign Ministry spokesman Geng Shuang said he was unaware of the call between the two parties. This was also supported by Hu Xijin, editor-in-chief of China's state-run newspaper The Global Times, who said Monday in a tweet, "To my knowledge, Chinese and US top negotiators have not made any phone calls lately." [1
"President Trump's ongoing escalation of tension leaves China (or even the US) little room for compromise without losing face, making a deal less likely in the short term," Tapas Strickland, an economist at National Australia Bank, said a morning note.
It is "clear" that Trump and his government still want an agreement with China when it "addresses some of the concerns that arise in connection with issues such as forced technology transfer and theft of intellectual property, Clete Williams, Partner at the Akin Group, CNBC told "Squawk Box" on Tuesday.
"That is, I think you see the president saying otherwise on Friday," Williams said. My advice to them is to stay calm, not read into every single commentary, and if you can not keep calm, you're looking for volatility because you'll see a lot of ups and downs. " Lows and back and forth between now and the closing of a deal … "
The Chinese yuan is being watched today after Monday's offshore currency trading hit a record low , 1610 per dollar traded.
The official average for the onshore Yuan of the People's Bank of China was set at 7.0810, a new 11.5-year low, but still stronger than expected, Reuters reported Trading at 7.1459
The US dollar index, which tracks the greenback against a basket of its competitors, was trading at 97.997, registering an earlier high of 98.054.
The Japanese yen was down from 105.84 The dollar weakened below $ 105 in the previous session, with the Australian dollar trading at $ 0.6770 after rising from below $ 0.672 yesterday.
Oil prices rose on the morning of Asian trading hours, with the international reference Brent crude oil futures contract rising 0.58% to $ 59.04 a barrel and US crude oil futures up $ 0.67 to $ 54 per barrel ,
Here are some of the data due today:
- Germany: Gross Domestic Product for the second quarter at 14:00 HK / SIN