Asian stocks rose on Tuesday, likely fuelled by an improvement in investor sentiment around ongoing negotiations between the United States and China.
Australia’s benchmark ASX 200 was up 0.28 percent, with the energy subindex adding 0.64 percent and materials up by 0.65 percent as major miners gained. Shares of Rio Tinto were up 1.59 percent, Fortescue gained 0.96 percent and BHP added 0.66 percent.
In South Korea, the Kospi index rose 0.93 percent as major chipmakers gained. Samsung shares were up 1.59 percent and SK Hynix added 1.81 percent. Hong Kong’s Hang Seng Index was up 0.16 percent.
Chinese mainland shares mostly advanced: The Shanghai composite traded near flat, the Shenzhen composite was up 0.35 percent and the Shenzhen component gained 0.36 percent.
Japanese markets are closed for a public holiday.
The session in Asia follows overnight gains on Wall Street where the S&P 500 notched its first close above 3,000 since September 18.
“Fuelling the positive mood music have been comments from President (Donald) Trump’s chief economic adviser Larry Kudlow saying that while down to Trump, he sees the possibility of taking off the threatened December tariff increases, as China requested, if the trade talks go well,” Ray Attrill, head of foreign-exchange strategy at the National Australia Bank, wrote in a morning note.
Kudlow made his comments on Fox Business Network. At the same time, Commerce Secretary Wilbur Ross also told Fox Business that it was more important for the two sides to have a proper deal instead of an exact date when it gets signed.
Trump and Chinese President Xi Jinping are set to participate in the Asia-Pacific Economic Cooperation meetings in Chile during mid-November, where many are anticipating a partial trade deal to be signed between the two countries.
Elsewhere, U.K. Prime Minister Boris Johnson was prevented from holding an important vote on the Brexit withdrawal deal he recently agreed with Brussels. His move to hold that vote on Monday was rejected by House Speaker John Bercow as it was not parliamentary convention to repeatedly ask the same questions to politicians.
“This decision means that in order to get a deal the government will have to try to pass the full Withdrawal Agreement Bill,” analysts at ANZ Research wrote in a note, adding the legislation will now be introduced in the lower house of parliament for a vote before it makes its way to the upper house.
Johnson has also grudgingly asked for an extension to the deadline for the U.K.’s departure from the European Union, but EU leaders don’t necessarily have to accept it.
The British pound wavered near the $1.30 level, trading around $1.2979 on Tuesday morning Asia time.
The U.S. dollar index, which measures the greenback against a basket of its peers, last traded at 97.313, retreating fractionally from the previous close. The Japanese yen changed hands at 108.64 per dollar, weakening slightly from levels near 108.52, while the Australian dollar traded at $0.6869, up from $0.6860.
Oil prices were flat during Asian hours: U.S. crude traded at $53.32 per barrel while global benchmark Brent was at $58.94.
Source: CNBC
