Global Markets:
- Asian Stock Markets : Nikkei up 2.55%, Shanghai Composite up 1.78%, Hang Seng up 2.42%, ASX up 0.46%
- Commodities : Gold at $1470.35 (-0.13%), Silver at $16.93 (-0.13%), Brent Oil at $64.69 (+0.76%), WTI Oil at $59.53 (+0.59%)
- Rates : US 10-year yield at 1.910, UK 10-year yield at 0.821, Germany 10-year yield at -0.227
News & Data:
- (NZD) Business NZ Manufacturing Index 51.4 vs 52.6 previous
- (USD) PPI m/m 0.00% vs 0.20% expected
- (USD) Core PPI m/m -0.20% vs 0.20% expected
- (EUR) Main Refinancing Rate 0.00% vs 0.00% expected
- (CHF) SNB Policy Rate -0.75% vs -0.75% expected
Markets Update:
Asian stock markets, led by Japan, are rising on Friday following news that the U.S. and China have agreed to a phase one trade deal in principle, that now requires U.S. President Donald Trump’s approval. In addition, exit polls showing a clear majority for Prime Minister Boris Johnson’s Conservative Party in the UK elections also boosted sentiment.
Japanese stocks surged in morning trade. The Nikkei 225 gained 2.6% as shares of index heavyweight Fast Retailing soared above 3.5%. The Topix index added 1.6%. Meanwhile, the Bank of Japan’s “tankan” survey released Friday showing business confidence among the country’s large manufacturers diving to its lowest level in more than six years.
Hong Kong’s Hang Seng index also jumped 2.4% as shares of Tencent and HSBC soared more than 2% each. Mainland Chinese stocks rose by the afternoon, with the Shanghai composite up 1.8% and the Shenzhen component up 1.5%. South Korea’s Kospi also saw robust gains as it traded 1.5% higher, with shares of chipmaker SK Hynix skyrocketing more than 5%. Shares in Australia also advanced, as the S&P/ASX 200 gained 0.5%, with shares of major miner BHP jumping beyond 2%.
Amid the positive trade headlines, the onshore yuan jumped to its strongest levels against the greenback in more than three months, last trading at 6.9671 per dollar. Its offshore counterpart changed hands at 6.9582 per dollar.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 96.772 after seeing highs above 97.2 yesterday. The shift from safe havens left spot gold flat at $1,470 per ounce. Oil prices rallied on hopes a trade deal would support global growth and thus demand.
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