Asia markets poised for higher open on Monday following positive news on US-China trade

  • Asia markets are poised for a moderately positive open on the first trading day of the week following the positive close in markets stateside last week.
  • The Wall Street Journal reported last Friday that trade talks between U.S. President Donald Trump and Chinese leader Xi Jinping were being planned for November.
  • The news sent the Dow Jones Industrial Index higher by more than 100 points to close at 25,669.32.

Asia markets are set to open moderately higher on Monday, following a higher finish on Wall Street last Friday after a report said President Donald Trump and Chinese leader Xi Jinping hope to discuss U.S.-China trade in November.

Nikkei futures were trading mostly flat at around 22,250, compared to the benchmark index’s last close at 22,270.38.

In Australia, the SPI futures traded up 0.5 percent at 6,327.

U.S. markets closed higher on Friday: The Dow Jones Industrial Average led the way with a 110.59 points jump to close at 25,669.32 following a report from the Wall Street Journal which said trade talks between the leaders of the U.S. and China were planned for November. The S&P 500 also rose 0.3 percent to 2,850.13, while the Nasdaq Composite erased earlier losses to close 0.1 percent higher at 7,816.33.

The WSJ report came after last Thursday’s confirmation from U.S. National Economic Council Director Larry Kudlow that trade talks between American and Chinese officials will be held later in August.

In recent months, the U.S. and China have been locked in an ongoing trade war with both sides placing tit-for-tat import tariffs on each other. The ongoing tensions have left investors fearful that further escalation could result in a global economic slowdown or a hit corporate profits.

“This has given markets some reason for optimism that a de-escalation of Sino-US trade tensions is possible one side or other of November’s US mid-term elections,” Ray Attrill, head of FX strategy at National Australia Bank, said in a Monday morning note.

“The news resonated more in currency markets than elsewhere with gains most pronounced for the NZD and AUD; but it also served to lift US stocks into positive territory for the day after flat-lining earlier in the session,” he added.

The U.S. dollar index, which tracks the greenback against a basket of currencies, traded at 96.128. Closer to Asia, the safe haven Japanese yen was trading slightly lower to the dollar at 110.53 yen per dollar as of 7:06 a.m. HK/SIN.

Here is a look at the data in the day ahead:

  • Taiwan – July export orders @ 4:00 p.m. HK/SIN

CNBC’s Fred Imbert contributed to this report.

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