Asian Stocks Rise as Optimism Is Boosted by Trump-Xi Call – Asia Market Wrap
Asian stocks rose after a chat between Donald Trump and Xi Jinping bolstered optimism of reducing US-China tensions.
Equities rose in regional markets ranging from Australia to Japan and China. A gauge of large Chinese enterprises listed in Hong Kong climbed by much to 2.5% after Trump praised the two leaders’ pre-inauguration talks as ‘very good.’ US futures were slightly down in Asia after Wall Street halted for a holiday on Monday.
The Dollar index fell, extending last week’s fall and shattering a six-week gain.
The spike in demand for risk assets occurred after Trump and Xi discussed trade, TikTok, and fentanyl, which may have set the tone for relations in the early days of the new administration. To add to the cheerful mood, TikTok resumed operation in the US on Sunday after Trump said that he would defer the enforcement of a law requiring the app’s Chinese owner to find a buyer for three months.
BoJ officials also see a good likelihood of raising interest rates as long as Trump does not cause too many immediate negative shocks, according to people familiar with the situation.
