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Asian stock markets rose in tandem with global stock markets on Tuesday and the price of hedge bonds fell, helping restore investor confidence after the sharp fall in the market last day, amid signs that trade hostility between China and the United States may temporarily ease.
U.S. President Trump on Monday mentioned the possibility of a trade agreement with China, saying he believes Beijing sincerely hopes to reach an agreement. This supports market sentiment. Global markets plunged earlier this week as China and the United States imposed tit-for-tat tariffs on each other.
The MSCI Mingsheng Asia-Pacific (excluding Japan) index rose 0.3% and fell 1.3% last day.
The Shanghai Composite Index. SSEC rose 1%.
The Korea Composite Stock Index. KS11 rose 0.8% and the Nikkei Index. N225 rose 1.1%.
Stock markets may have gained momentum now, but the long-term prospects for risky assets remain fragile under repeated shocks of trade concerns.
"There are still many uncertainties in the Sino-US trade war. It is still difficult to predict whether the trade war will be resolved, which will continue to put pressure on stock market sentiment, "said Shusuke Yamada, chief Japanese currency and stock market strategist at Bank of America Merrill Lynch.
"In addition to the trade war, the stock market also needs to pay attention to the process of Britain's de-Europeanization, the monetary policy of major central banks such as the European Central Bank and the fluctuation of the RMB exchange rate."
The spot Renminbi fell to an 11-year low of 7.1566 yuan against the dollar.
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