Yahoo Finance Asian Markets Rise as China, U.S. Prepare In-Person Trade Negotiations
Investing.com - Asian markets rose in morning trade on Wednesday on reports that China and the U.S. will begin in-person trade talks next week.
China’s Shanghai Composite and the Shenzhen Component both gained 1.2% by 10:30 PM ET (02:30 GMT). Hong Kong’s Hang Seng Index rose 1.0%.
Citing unnamed sources, CNBC reported that U.S. officials will travel to Beijing sometime between Friday and August 1.
CNBC further said that Washington is considering rolling back the tariffs in exchange for Beijing to make the trade deal legally binding, but the process could take several months at least.
Japan’s Nikkei 225 traded 0.4% higher. Automaker Nissan made headlines after local media Kyodo News reported that the company plans to cut more than 10,000 jobs globally.
On the data front, The Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) was at 49.6 in June, remained below the 50.0 threshold that separates contraction from expansion for a third month.
"Weak demand from China remained a key factor behind sluggish demand for Japanese goods," said Joe Hayes, economist at IHS Markit, which compiles the survey.
"Heightened frictions between Japan and South Korea also add downside risk to the manufacturing supply chain in Japan, creating additional slack that services may once again have to compensate for."
South Korea’s was little changed. The Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) was at 49.6 in June, remained below the 50.0 threshold that separates contraction from expansion for a third month.
"Weak demand from China remained a key factor behind sluggish demand for Japanese goods," said Joe Hayes, economist at IHS Markit, which compiles the survey.
"Heightened frictions between Japan and South Korea also add downside risk to the manufacturing supply chain in Japan, creating additional slack that services may once again have to compensate for."
Down under, Australia’s ASX 200 traded 0.8% higher.
In other news, the International Monetary Fund reduced its global growth outlook for the second time this year.
The world economy will expand 3.2% this year and 3.5% next year, the fund said in its latest quarterly World Economic Outlook released Tuesday. Both rates were down 0.1% from the funds’ April projections.
“The projected growth pickup in 2020 is precarious, presuming stabilization in currently stressed emerging market and developing economies and progress toward resolving trade policy differences,” the IMF said.
“The principal risk factor to the global economy is that adverse developments - including further U.S.-China tariffs, U.S. auto tariffs, or a no-deal Brexit - sap confidence, weaken investment, dislocate global supply chains, and severely slow global growth below the baseline,” the IMF said.
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