Asia markets positive following overnight gains on Wall Street

  • On Monday, White House economic advisor Larry Kudlow said a trade deal between the U.S. and China is not “imminent.”
  • Trade tensions between Washington and Beijing appear to have spilled over into other aspects of their relationship, with a planned visit by Defense Secretary James Mattis to China in October being canceled.

Asia markets were positive on Tuesday following overnight gains on Wall Street.

The Nikkei 225 rose by 0.69 percent in the early hours of trading, while the Topix advanced by 0.98 percent as most sectors saw gains.

South Korea’s Kospi traded slightly higher in the morning, after data showed the country’s year-on-year output to be above forecasts.

Down Under, the ASX 200 was largely flat, with most of the country’s banks continuing to sustain losses. Shares of AMP slipped by 1.12 percent in the morning

China’s markets are closed for a public holiday.

Wall Street action overnight

In market action overnight on Wall Street, the Dow Jones Industrial Average climbed by 192.90 points to close at 26,651.21 while the S&P 500 advanced by 0.4 percent to 2,924.43. The Nasdaq Composite slid 0.1 percent to 8,037.30.

Trade developments

The market moves stateside came on the back of Canada and the U.S. announcing a new trade deal to replace the current North American Free Trade Agreement (NAFTA). The new accord is expected to be named the United States-Mexico-Canada Agreement. Leaders from the two countries, along with Mexico — which agreed to a deal with the U.S. in August — are expected to sign the new deal before the end of November, before it is handed to Congress.

Meanwhile, White House economic advisor Larry Kudlow said in a Fox Business interview on Monday that a trade deal with China is not “imminent.” Kudlow also said U.S. President Donald Trump was not satisfied with the current progress of trade talks between Washington and Beijing.

Trade tensions between the U.S. and China appear to have spilled over into other aspects of their bilateral ties, with the Pentagon canceling Defense Secretary James Mattis’ visit to China later in October.

Currencies and oil

In currency news, the Japanese yen was largely flat at 113.94 against the dollar, while the Australian dollar was slightly stronger at $0.7228, as of 8:16 a.m. HK/SIN.

The U.S. dollar index, which tracks the greenback against a basket of currencies, was at 95.317 as of 8:17 a.m. HK/SIN, closing in on its earlier highs.

In the oil markets, the global benchmark Brent crude futures contract slipped 0.12 percent in the morning at $84.88 per barrel. The U.S. West Texas Intermediate futures contract, on the other hand, rose by 0.2 percent to $75.45 per barrel.

Here is a look at the information due to be released later in today’s trading day:

  • Australia — Reserve Bank of Australia’s decision at 12:30 p.m HK/SIN.

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