Asian stocks rode on the Wall Street wave to the 18-month peak.
- Asian stocks rose to an 18-month high as the trade deal optimism, and positive economic signals in China and Wall Street rallied.
- Monday data showed growth in China's industrial and retail sectors beat expectations in November.
- The preliminary deal between China and the U.S. reached last week will double U.S. exports to China.
On Tuesday, Asian stocks rose to an 18-month high as the trade deal optimism, and positive economic signals in China and Wall Street rallied.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1% to its highest since June 2018.
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Japan’s Nikkei touched its firmest in more than a year, while markets from Shanghai to Seoul and Hong Kong all rose by more than a percentage point.
Oil hovered near three-month highs in anticipating a rise in demand from the world’s biggest economies.
Yet, without fresh news on the trade front, the euphoria did not extend into the debt or currency markets, where movements were slight.
Futures also pointed to a flat open in Europe and a steady start to Tuesday in New York. FTSE futures were down 0.3%.
“People are looking to close the year on a good note,” said Vishnu Varathan. The head of economics and strategy at Mizuho Bank in Singapore.
“I think that these are far more opportunistic than they are conviction trades, so they tend to be a little bit more prone to taking profits,” he added.
The preliminary deal between China and the U.S. reached last week will double U.S. exports to China. White House adviser Larry Kudlow told Fox News on Monday.
The U.S. will also reduce some tariffs on Chinese goods under the agreement.
The deal is not yet signed, and the Chinese side has been more cautious in their praise. But the U.S. Trade Representative Robert Lighthizer said it was “totally done.”
Monday data showed growth in China’s industrial and retail sectors beat expectations in November.
The three major U.S. stock indexes rose modestly but posted record closing highs. So did the pan-European STOXX 600 index.
In Britain, the FTSE 100 had its biggest daily gain in almost a year. But after the closing bell, some familiar fears returned.
ITV reported U.K. Prime Minister would use his huge majority to reinstate a hard deadline for quitting the European Union at the end of next year, again raising the specter of a chaotic “hard” Brexit.
Sterling fell 0.6%, before recovering slightly.