Shares in Asia jumped on Friday, 03 January 2020, on tracking jump of stocks on Wall Street to new all-time highs overnight, boosted by anticipation of a phase one trade deal being inked between Washington and Beijing and monetary policy easing by China's central bank aimed at stimulating the country's economy.
The Asian market got a boost on following a rally overseas after China's central bank said it will free up more money for lending. The People's Bank of China announced on Wednesday that it will lower the reserve requirement ratio for banks by 50 basis points with effect from Jan. 6, unleashing about 800 billion yuan ($115 billion) in funds. The move is expected to boost the country's slowing economy ahead of the Lunar New Year, which falls on Jan. 25.
Meanwhile, sign of initial Sino-U.S. trade deal progress also aided sentiment. Earlier this week, President Donald Trump tweeted that he will sign the initial trade deal with China at the White House this month. He also said he plans to travel to Beijing at a later date to open talks on other sticking points in the dispute that remain to be worked out, including Chinese practices the U.S. complains unfairly favor its own companies. That came following reports indicating Chinese Vice Premier Liu He, Beijing's top trade negotiator, could sign the agreement.
Investors continued to wait for Washington and Beijing to formalize an initial trade deal that has helped ease the market's jitters over the 18-month dispute between the world's two biggest economies. Washington and Beijing announced last month that they reached an agreement over a "Phase 1" trade pact that calls for the U.S. to reduce tariffs and China to buy larger quantities of U.S. farm products.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
