Asian stocks bolstered by fresh trade talk momentum

Asian stocks bolstered by fresh trade talk momentum

Asian stocks rose on Tuesday, bolstered by Wall Street’s record closing highs and signs of new momentum in Beijing’s and Washington’s efforts to end their long and acrimonious trade dispute.

MSCI’s broadest index of Asia-Pacific shares outside Japan (MIAPJ0000PUS) rose 0.5% to a one-week high. Australian shares (AXJO) were up 0.9%, while Japan’s Nikkei stock index (N225) rose 0.91%.

Shares in the region extended gains on Tuesday after Beijing said Liu He, China’s Vice premier and chief trade negotiator, held a call with his U.S. counterparts and that both sides reached consensus on solving relevant problems.

That followed positive headlines out of China and the United States on Monday, which had helped bolster confidence.

“The broad trend is the markets are looking for a deal because trade has been the biggest factor weighing on global growth and holding back confidence,” said Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors in Sydney.

“We have a low interest rate environment that is supportive of equities. If we get better economic news and relief from geopolitical risks, equities could rally further next year.”