by Shinichi Saoshiro
TOKYO (Reuters) – Asian stocks rose and U.S. Treasury yields hovered near four-month highs on Wednesday, as investors looked past the latest escalation in the U.S.-China trade conflict, seen by some market participants as less severe than expected.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.15 percent.
Australian stocks added 0.35 percent, South Korea’s KOSPI climbed 0.1 percent and Japan’s Nikkei rose 1.45 percent.
Equity markets in Asia took their cues from Wall Street, which posted a broad-based rally on Tuesday amid emerging views that the U.S.-China trade dispute’s impact on world growth might not be as heavy as previously feared. [.N]
“The broader equity markets are able to regroup now that the latest phase of the U.S.-China trade war is over,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management in Tokyo.
“There was relief as the United States set the initial tariffs at 10 percent, rather than the expected 25 percent, seen by some as a gesture that it was buying time for further negotiations.”
The pound shook off modest overnight losses and rose to $1.3175, its highest since July 26. Growing confidence that London and Brussels can secure an agreement has encouraged investors to buy into the British currency.
Crude oil prices consolidated after rallying the previous day on signs that OPEC would not be prepared to raise output to address shrinking supplies from Iran, and as Saudi Arabia signalled an informal target near current levels. [O/R]
U.S. crude futures was 0.25 percent lower at $69.69 a barrel after surging 1.4 percent on Tuesday.
(Editing by Sam Holmes)
Get PERKS and Support Community Journalism | SUBSCRIBE