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Asian markets rally after China, US reach partial trade deal

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AFP Hong Kong
Last Updated : Oct 14 2019 | 1:40 PM IST

Asian investors on Monday cheered a partial trade deal between China and the United States, sending regional markets rallying, though observers were sceptical about the overall significance of the agreement.

Dealers took their lead from a strong performance on Wall Street after top-level negotiators ended two days of talks saying US tariffs due to take effect this week would be put off and China would ramp up its purchases of US farm products.

They also agreed on other issues including intellectual property, financial services and currencies.

The news provided some much-needed support to Asian markets, with Hong Kong up 0.8 per cent and Shanghai jumping more than one percent despite data showing Chinese imports and exports fell more than forecast in September.

Sydney and Singapore both put on 0.5 per cent, while Taipei and Seoul also rallied more than one per cent.

Wellington, Mumbai, Manila and Jakarta saw healthy advances.

While the deal was welcomed by Trump as "the greatest and biggest deal ever made for our Great Patriot Farmers in the history of our Country", analysts were a little more guarded.

"Let's not get carried away," Raoul Leering, head of international trade research at ING Bank NV, told Bloomberg News. "There is a very tough journey ahead for the US and Chinese negotiators to cut a deal that really has substance."
"Some of the more challenging issues, such as the US blacklisting of Chinese tech companies and possible limits on US institutional investors investing in Chinese equities, don't seem to be on the agenda."
"Like the apparent trade deal that isn't... precisely no details of the nuts and bolts of Messrs Johnson and Varadkar's breakthrough conversation of last week have been released."

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First Published: Oct 14 2019 | 1:40 PM IST

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