TOKYO- Asian shares approached their July peak on Tuesday on signs the United States and China are inching closer to a truce in their trade war and on optimism the US economy is poised for solid, consumer-driven growth.
MSCI’s broadest index of Asia-Pacific shares outside Japan ticked up 0.1 percent after hitting a four-month high the previous day.
China’s mainland shares were little changed while Japan’s Nikkei rose 1.34 percent to one-year high after a market holiday on Monday.
On Wall Street, the S&P 500 gained 0.37 percent to a record high of 3,078.27 on Monday while the Dow Jones and the Nasdaq also clinched all-time highs.
In Europe, shares rallied more than 1 percent, with many reaching their highest level since January 2018. The STOXX 600 index of small, mid-sized and large companies across Europe surged to highs last seen in July 2015.
US S&P500 futures gained a further 0.2 percent in Asia after the Financial Times reported on Tuesday that the United States is considering rolling back levies on $112 billion of Chinese imports, which were introduced at a 15 percent rate on Sept. 1.
The story came after Beijing and Washington spoke of progress in trade talks on Friday and US Commerce Secretary Wilbur Ross said licenses for US companies to sell components to China’s Huawei Technologies Co will come “very shortly.”
“Economic uncertainties are receding. That means those who had held off their activities, both in the real economy and financial markets, are getting active,” said Masaru Ishibashi, joint general manager of trading at Sumitomo Mitsui Bank.
Chinese President Xi Jinping said on Tuesday the global community needs to bring down trade barriers.
US employment data released on Friday showed strong job gains despite the drag from a strike at General Motors, offering some assurance that consumers would continue to support the slowing economy. – Reuters