Asia stocks set to rise amid positive US-China trade sentiment


Stocks in Asia were set to trade higher on Friday following hints from Beijing that it will not retaliate against the latest round of tariffs from Washington for now, amid the ongoing U.S.-China trade war.

Futures pointed to a higher open for Japanese shares. The Nikkei futures contract in Chicago was at 20,680, while its counterpart in Osaka was at 20,700. The Nikkei 225 last closed at 20,460.93.

Meanwhile, Australian stocks were also set to rise. The SPI futures contract was at 6,528.0, as compared to the S&P/ASX 200’s last close at 6,507.40.

Investors will continue to monitor developments on the U.S.-China trade war on Friday. Gao Feng, a spokesman for China’s Ministry of Commerce, said Thursday that Beijing is willing to resolve its trade fight with Washington calmly, indicating that the Chinese are more interested in negotiations than they are on retaliating.

“We firmly reject an escalation of the trade war, and are willing to negotiate and collaborate in order to solve this problem with a calm attitude,” Feng said, according to a CNBC translation of his Mandarin-language remarks. He noted that the Chinese and U.S. trade delegations have maintained “effective” communication.

Meanwhile, a closely watched yield curve inversion in U.S. Treasurys remained, with the yield on the 10-year Treasury note below that of the 2-year note’s rate. That has raised concerns among some investors as the phenomenon has historically preceded a recession.

Meanwhile, India is set to release its gross domestic data for the April-June quarter at 8:00 p.m. HK/SIN.

Asia-Pacific Market Indexes Chart

Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 98.507 after its recovery from lows below 98.0 seen earlier in the trading week.

The Japanese yen traded at 106.53 against the dollar after weakening from levels below 106.2 yesterday, while the Australian dollar changed hands at $0.6726, close to lows around $0.672 seen in the previous session.

Here’s a look at some of the data due today:

  • Australia: Private Sector Credit data for July at 9:30 a.m. HK/SIN
  • India: Gross domestic product for April-June quarter at 8:00 p.m. HK/SIN

— CNBC’s Evelyn Cheng contributed to this report.



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