Asia market trends Tuesday: US-China trade talks may spur market optimism

Singapore container portSingapore’s container port

Asian shares may eke out further gains on Tuesday, potentially tracking Wall Street’s rise as U.S.-China trade talks began.

As negotiations commenced Monday, markets appeared optimistic that the U.S. trade war might come to a rapprochement. Both sides made comments suggesting they were positive on the talks, according to a Washington Post report.

As the U.S. government entered its third week — the third-longest in history — President Trump said he was willing to compromise on the type of material used to build a wall on the U.S.-Mexico border, but won’t back down on the demand to spend billions constructing it. Trump has indicated the shutdown will continue until he gets his funding.

In an interview over the weekend, the president said furloughed workers who are struggling to pay bills and buy food, “will make adjustments,” so they can cope, adding “they always do.” Over the weekend it also emerged that some airport Transportation Security Administration (TSA) security workers, who are being forced to work without pay, have been calling in sick daily by the the hundreds nation, raising concerns about airport security and safety.


Japan’s Nikkei 225 index was up 0.92 percent in early trade.

Singapore’s Straits Times Index rose 1.42 percent to end at 3102.80 on Monday; STI futures for January were at 3097 on Monday, while February and March futures were at 3100 and 3097 respectively.

Hong Kong’s Hang Seng Index was up 0.82 percent at 25,835.699 on Monday, while China’s CSI 300 gained 0.61 percent at 3054.303.

Indonesia’s IDX Compostie was up 0.20 percent at 6287.22 on Monday, while Malaysia’s KLCI gained 0.56 percent to 1679.17.

The Dow Jones Industrial Average tacked on 0.42 percent to end Monday at 23,531.35, the Nasdaq Composite added 1.26 percent at 6823.471 and the S&P 500 rose 0.70 percent to 2549.69. Futures for the three indexes were a tad higher in early trade.


Nymex WTI crude oil futures for February were up 0.56 percent at US$48.79 a barrel at 7:19 A.M. SGT, while ICE Brent crude oil futures for March were up 0.47 percent at US$57.33 a barrel at 6:54 A.M. SGT, according to Bloomberg data.


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