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        Report on the Progress of Sino-US Trade Negotiations


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Asian stocks rose on Friday, and reports of progress in the Sino-US trade negotiations fueled hopes of reaching an agreement, bolstering risk appetite.
The Wall Street Journal reported Thursday, citing people familiar with internal discussions, that U.S. Treasury Secretary Nouchin discussed the partial or total abolition of tariffs imposed on Chinese imports in the trade negotiations scheduled for January 30 and suggested a reduction in tariffs.
U.S. stocks rose after the newspaper was published, but then a Treasury spokesman told CNBC that Nouchin had not made the above recommendations and that U.S. stocks had cut some gains. The Wall Street Journal also reported that U.S. Trade Representative Letterheiser had been opposed to the idea and that the proposal had not yet been submitted to President Trump. All three major U.S. stock indexes closed higher on Thursday, with industrial stocks leading the way.
Even traces of progress in the US-China trade war have helped boost risk appetite. The MSCI Mingsheng Asia-Pacific (excluding Japan) index rose 0.7%, up 1.4% this week.
The Shanghai Composite Index. SSEC rose 0.8%. Australian and Korean stocks. KS11 both rose 0.5%, Nikkei index. N225 rose more than 1%, hitting a one-month high.
"As in 2008, the US-China trade dispute remains a key market theme in 2019. The slight difference is that there are some signs that both sides are looking for some sort of solution, "said Ichiro Mensi, chief strategist at Daiwa Bank Investment Consulting.
"China seems to have few options, and given the negative impact of the trade war on the US market and economy, the US may also want to avoid falling into long-term disputes," said Chief Executive Ichiro Mensi.


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