Sunday , June 20 2021

US China trade, currencies in focus

Markets in the Asia-Pacific region rose on Friday morning, with investors reacting to a report that US officials are assessing the possibility of easing tariffs on China in a bid to boost trade talks.

that "there is no discussion on tariff lifting now."

Analysts at the Eurasia Group said that President Donald Trump's and Chinese leader Xi Jinping's desire to avoid rate hikes reduces the likelihood of talks being halted in the first half of the year.

"Fearful of the negative reaction from the nerve markets to the collapse of the talks, the two sides have taken a constructive approach, refusing to allow geopolitical divergences from Iran and cyberspace to stifle negotiations," the analysts said in a statement.

"Instead of reaching a comprehensive agreement within the theoretical deadline of 1 March, the two sides will broaden the negotiations," they said, adding that the extension could last another 90 days.

The WSJ's report Thursday also sent US stocks higher overnight.

Elsewhere, the US president canceled his delegation's trip to the World Economic Forum, citing a partial shutdown of the government.

The dollar index, which tracks the dollar against a basket of its peers, changed hands by 96,065.

The yen, seen as a safe haven asset, traded at 109.29 at 8:38 pm / week SIN, weaker than levels close to 108.00 earlier in the week. The Australian dollar was at $ 0.7198, after seeing early declines of $ 0.7183.

Fred Imbert of CNBC contributed to this report.

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