Share Market News: Asian Shares Up on Trade Truce
SHARE MARKET NEWS – On Monday, Asian shares rallied following the US-China trade truce. This served as a relief for the global economic outlook and stimulant for emerging markets as well as softened oil prices.
The gains had come from trade-exposed currencies. For one, the Australian dollar reached a four-month peak. Meanwhile, the dollar declined to one-month lows in battling against the yuan.
There was an increase of 1.9% in the E-Mini futures for the S&P 500 (ESc1). The Asia-Pacific shares’ MSCI’s broadest index outside Japan surged to 1.8 percent.
Meanwhile, China’s CSI300 index of Shanghai and Shenzhen shares increased 2.6%. The Nikkei of Japan added 1.3% to highs for almost six weeks.
“Markets are opening with a knee-jerk boost to risk appetite but time will tell how enduring the optimism proves to be. There are already very different official takes on what was achieved at the meeting,” said ANZ economist Jo Masters.
She added that both sides can claim a win for now.
“Perhaps not insignificantly, it provides a window to export the soybean crop from key Republican states, at least,” she said.
China and the United States have come into an agreement to end the implementation of additional tariffs. This would stop the escalation of the trade war between the two countries. Further, they have bridged their differences through renewed talks aimed at reaching a deal within 90 days.
On Saturday, the US government stated that President Donald Trump expressed his decision to not boost tariffs to 25%. The tariffs are for the $200 billion worth of Chinese goods.
Share Market News: Australian stocks closed higher in trade
On Monday, Australian stocks reached higher at the trade close. The gains in sectors such as Energy, Resources, and Metals & Mining lifted the shares higher.
Moreover, the S&P/ASX 200 increased 1.84% at the Sydney close.
The best performers during the S&P/ASX 200 session were Graincorp Ltd, Bellamys Australia Ltd, and Bluescope Steel Ltd. There was an increase of 26.71% or 1.950 points in Graincorp Ltd to end at 9.250. On one hand, Bellamy Australia Ltd gained 12.02% or 0.880 points to end at 8.200. BlueScope Steel Ltd, on the other hand, increased 11.49% or 1.290 points to 12.520 in late trade.
Meanwhile, the worst performers during the session were St Barbara Ltd, Metcash Ltd, and Ausdrill Ltd.
Based on the Sydney Stock Exchange, the increasing stocks surpassed the decreasing ones by 769 to 417 and 316 ended unchanged.
The S&P/ASX 200 VIX dropped 14.09% to 14.832.
