Hong Kong
Most Asian markets rose Tuesday following another record-breaking lead from Wall Street, with the China-US trade deal providing further support, though sterling took a battering as fresh fears of a no-deal Brexit emerged. Christmas cheer continues to flow through trading floors after Friday’s agreement between the world’s top two economies ended months of wrangling and removed any immediate uncertainty. The deal, which will see Washington wind back some tariffs and China ramp up purchases of US goods as well as change its trade practices, sparked a surge in equities that continued Monday in New York, with all three main indexes ending at all-time highs. And, while Asia saw a slight wobble Monday, the optimism seeped into the region in early business, with Hong Kong and Shanghai rallying more than one percent, while Tokyo ended 0.5 percent higher. Seoul and Taipei both also jumped more than one percent, while there were also gains for Mumbai, Bangkok, Taipei, Wellington and Jakarta, though Sydney, Singapore and Manila were marginally lower. But while the news has been met with broad relief, observers point out that the deal is only the first—and easiest—part of a wider agreement many think could take years to complete. There are also concerns about the lack of detail and questions about how the two sides will implement the pact. “Some salient doubts remain, of course, about the interim trade deal,” said Jeffrey Halley at OANDA, adding that they also had yet to sign anything.—AFP
