Asian markets may extend their recent rally on Wednesday, catching some of Wall Street’s optimism that the ongoing trade talks between the U.S. and China may result in a rapprochement in the Trump administration’s trade war.
U.S. President Trump said Tuesday the latest round of trade talks with China were proceeding well, while Chinese authorities plan to give a “detailed readout” after the conclusion, reports said.
Talks with China are going very well!
— Donald J. Trump (@realDonaldTrump) January 8, 2019
Some analysts were less convinced.
“It remains to be seen whether any settlement would be materially different to the one reached earlier in the year that President Trump rejected and if token measures like buying more soybeans will be enough to reach agreement,” Scotiabank said in a note on Tuesday.
Separately, Trump was scheduled to deliver what has become a controversial televised address on his immigration policy and his decision to shutdown the Federal government over funding for a border wall with Mexico. Media organizations have been issuing “cheat sheets” to fact check Trump’s statements.
March futures for Japan’s Nikkei 225 index were at 20,380, up 50 points, at 8:03 A.M. SGT, according to CME data; that compared with the index’s previous close at 20,204.04.
Singapore’s Straits Times Index ended Tuesday up 0.65 percent at 3122.94; January futures for the index were at 3123 on Tuesday, while February and March futures were at 3126 and 3123 respectively.
Hong Kong’s Hang Seng Index edged up 0.15 percent to 25,875.449 on Tuesday, while China’s CSI 300 index shed 0.22 percent to 3047.704.
Malaysia’s KLCI was down 0.38 percent at 1672.76 Tuesday, while Indonesia’s IDX Composite shed 0.39 percent to 6262.85.
The Dow Jones Industrial Average gained 1.09 percent to 23,787.45, the Nasdaq Composite was up 1.08 percent at 6896.999 and the S&P 500 rose 0.97 percent to 2574.41. Futures for the three indexes were slightly higher in early trade.
Nymex WTI crude oil futures for February were up 0.06 percent at US$49.81 a barrel at 7:35 A.M. SGT, while ICE Brent crude futures for March gained 2.42 percnet to US$58.72 a barrel by 6:54 A.M. SGT, according to Bloomberg data.
This article was originally published on Wednesday, 8 January 2019 at 8:19 A.M. SGT; it has since been edited.