Asian Markets Rise After US-Mexico Deal But Early Gains Pared 28 August 2018
Rukhshan Mir (@rukhshanmir) Published August 28, 2018 | 03:34 PM
Asian investors extended a rally on Tuesday, tracking another Wall Street record as they cheered a fresh trade deal between the United States and Mexico -- ending one row picked by Donald Trump that had rattled global markets.
Hong Kong, (UrduPoint / Pakistan Point News - 28th Aug, 2018 ) :Asian investors extended a rally on Tuesday, tracking another Wall Street record as they cheered a fresh trade deal between the United States and Mexico -- ending one row picked by Donald Trump that had rattled global markets.
The agreement raises hopes the North American Free Trade Agreement, rejected by the White House soon after Trump's election, can be salvaged after Canada rejoins talks on Tuesday.
The pact was described by the US president as "a big day for trade" and it sent the S&P 500 and Nasdaq to fresh all-time highs, while the Dow broke 26,000 for the first time since January.
Mizuho Securities said in a note to clients that investors are monitoring "the US-Canada negotiations... and the impact on US-China trade talks".
Monday's agreement comes after officials from Washington and Beijing held talks last week aimed at easing trade tensions that have seen them hit each other with tariffs on tens of billions of Dollars worth of goods.
While the meeting did not achieve any breakthrough, the fact it took place was seen as a good sign.
Stephen Innes, head of Asia-Pacific trading at OANDA, said dealers were "in a festive mood" as the deal removed "one major hurdle that has been haunting North American investors for months".
He added: "Markets are revelling in any trade positives... After all, a deal is a deal." - 'Too soon' for China talks - However, Trump appeared to temper expectations for a fresh round of talks with China, saying after announcing the new pact that "it's just not the right time to talk right now" before adding "eventually, I'm sure that we'll be able to work out a deal".
Equities, which enjoyed a healthy run after Federal Reserve boss Jerome Powell indicated Friday the bank would not aggressively raise interest rates, mostly rose in Asia but gains from an early rally were pared.
Tokyo ended 0.
1 percent higher, with Toyota boosted by news it will invest about $500 million into Uber as part of a deal to work on mass-producing self-driving vehicles.
Hong Kong was up 0.2 percent in the afternoon after jumping more than two percent Monday, while Shanghai finished 0.1 percent off.
Sydney climbed 0.6 percent and Singapore was 0.8 percent higher, with Seoul adding 0.2 percent and Taipei 0.8 percent stronger.
Manila, Wellington and Jakarta were also in positive territory.
In early European trade London rose 0.8 percent as investors returned to work after a long weekend, while Paris added 0.2 percent and Frankfurt gained 0.3 percent.
The more upbeat outlook helped high-yielding currencies. Mexico's peso jumped more than one percent on the news but struggled to maintain the gains on Tuesday, though the Canadian Dollar was up 0.8 percent.
South Korea's won, the Australian dollar and the South African rand also enjoyed solid buying.
The Turkish lira weakened 0.9 percent to around 6.2 against the dollar as the country's markets reopened after a week-long holiday, with dealers continuing to fret over the financial crisis in the country.
The euro dipped but managed to hold gains that came on the back of data showing business confidence in the German economy recovered as fears over a US trade war eased.
- Key figures around 0720 GMT - Tokyo - Nikkei 225: UP 0.1 percent at 22,813.47 (close) Hong Kong - Hang Seng: UP 0.2 percent at 28,313.04 Shanghai - Composite: DOWN 0.1 percent at 2,777.98 (close) London - FTSE 100: UP 0.8 percent at 7,635.09 Euro/dollar: DOWN at $1.1673 from $1.1680 at 2100 GMT Pound/dollar: DOWN at $1.2870 from $1.2895 Dollar/yen: UP at 111.22 Yen from 111.07 yen Oil - West Texas Intermediate: DOWN 10 cents at $68.77 per barrelOil - Brent Crude: DOWN seven cents at $76.14 per barrelNew York - Dow Jones: UP one percent at 26,049.64 (close)
Related Topics
Recent Stories
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 26 April 2024
Today Gold Rate in Pakistan 26 April 2024
ICC Womens T20 World Cup Qualifier, Match 2: Ireland Women open with Comfortable ..
Robinson, bowlers help New Zealand go 2-1 up against Pakistan
Shahzeb Chachar to hold khuli kachehri on April 26
Heatwave amid Israel's aggression in Gaza brings new misery, disease risk
Tourism must change, mayor says as Venice launches entry fee
Court adjourns Judicial Complex attack case till May 17
Nasreen Noori’s book ‘Popatan Jahra Khwab’ launched
Wafaqi Mohtasib inspection team visits Excise and taxation office
AJLAC announces 5th Conference titled ‘People’s Mandate: Safeguarding Civil ..
Pak-US officials engage to enhance trade, investment ties
More Stories From Business
-
Exchange rates for currency notes
24 minutes ago -
Foreign exchange rates
54 minutes ago -
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 26 April 2024
1 hour ago -
Today Gold Rate in Pakistan 26 April 2024
2 hours ago -
Chinese minister felicitates Ahsan Iqbal on reappointment as Planning minister
11 hours ago -
Pak-US officials engage to enhance trade, investment ties
12 hours ago
-
Stocks fall as tech shares sink, US economy slows
12 hours ago -
Higher taxes, awareness help decrease cigarettes sale in Pakistan
13 hours ago -
Ahsan Iqbal chairs CPEC JWGs, 13th JCC review-meeting
13 hours ago -
Industries Minister recommends urea fertilizer import to stabilize prices and supply
13 hours ago -
Honda announces US$11 bn EV battery and vehicle plant in Canada
13 hours ago -
Zhao Shirin calls on Punjab Industries Minister
14 hours ago