Asian stocks climbed with U.S. futures and the yuan rose after U.S. President Donald Trump postponed the date for boosting tariffs on Chinese imports, in the latest sign of progress in bilateral trade talks.
Chinese shares led the region higher after Trump said he will delay the March 1 deadline. Equities in Japan, whose economy has been hit by the trade war, also jumped, though rallies fizzled in South Korea and Australia. A gain in U.S. futures also faded after China’s state-run Xinhua news agency published a commentary saying talks will be harder at the final stage. The yuan and Australia’s dollar also pared advances. Treasuries recouped a modest loss.
The official delay from the U.S. may give fresh impetus to extend a global rally in equities that was being tested amid an uncertain future on global trade and forecasts for weakening economic growth. Also in focus this week will be the Humphrey-Hawkins hearing from Federal Reserve Chairman Jerome Powell, where investors will get the latest read on policy.
The MSCI Asia Pacific Index rose 0.5 percent as of 10:53 a.m. in Hong Kong.
Source : Bloomberg