Asian markets extend global rally

20 June, 2019 12:00 AM printer

HONG KONG: Asian markets rallied Wednesday after Donald Trump hailed “very good” phone talks with Xi Jinping and said they would meet at the G20 next week, renewing hopes for a deal to end a bruising trade war.

The US president’s comments provided a much needed boost to investors after a month of volatility sparked by his shock decision to hit China with fresh tariffs, ending months of apparently positive negotiations, reports AFP.

Adding to the upbeat mood were comments from the European Central Bank head Mario Draghi hinting at a cut in interest rates to support the stuttering eurozone economy.

The Federal Reserve is also due to end its latest policy meeting later Wednesday, with dealers hoping for some idea about its plans for rates.

After a healthy lead from Wall Street, the vast majority of Asia’s markets posted gains of at least one percent — with Hong Kong leading the way by jumping more than two percent.

Tokyo ended 1.7 percent higher, Shanghai added one percent, Singapore put on 1.4 percent and Sydney 1.2 percent.

Taipei added two percent, while Wellington, Seoul, Manila, Jakarta and Bangkok were above the one percent level. Mumbai was also in positive territory.

In early European trade, London dipped 0.1 percent, having risen more than one percent Tuesday, while Frankfurt and Paris were also slightly higher.

The rally was sparked after Trump tweeted: “Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting.”

Later he told reporters “the meeting might very well go well”, adding that China wanted to make a deal.

“China and the US will both gain by cooperating and lose by fighting,” Xi told Trump, according to a readout by Chinese state broadcaster CCTV.