Asian stocks reinforced by US-China talks
Asian shares gained on May 8. Investors are keeping a close watch on US-China negotiations and positive corporate earnings reports.
Asian trading opened with gains on Wall Street. They were enhanced further by media reports covering the trade deal talks. US and China representatives agreed to cooperate and were satisfied with the progress of the first phase of the agreed framework so far.
The reports pushed US stocks further up. E-minis for the S&P 500 gained 1.06% and reached 2,910.5. MSCI Asia-Pacific broadset index gained 1.1%. Nikkei earned 1.78%.
Australian stocks gained 0.76%. Chinese CSI300 index added 0.86%
Meanwhile negative economic data in the US made negative interest rates a possible near-term scenario. Earlier the Federal Reserve stated that it does not consider negative rates to be an “appropriate” measure. And yet further economic reduction might force their hand.
Reports from Japan released on May 8 demonstrated some of the impact of the containment measures on the economy. Household spending dropped 6% in March. Services sector reduced at a record speed.