HONG KONG: Asian markets mostly advanced on Tuesday as investors welcomed the extension of a China-US tariff truce.
Tokyo’s Nikkei 225 briefly surged nearly 3% to a record high of 42,999.71 amid renewed optimism over Japan’s economy.
The White House reiterated concerns over US trade deficits but avoided reimposing steep tariffs, allowing negotiations to continue.
Analyst William Yang noted Beijing is unlikely to make concessions despite ongoing talks.
Investors now await US inflation data, which could influence the Federal Reserve’s interest rate decisions.
Recent economic signals suggest a slowdown, raising expectations for a rate cut in September.
Pepperstone’s Michael Brown warned that higher-than-expected inflation figures could trigger market declines.
National Australia Bank’s Ray Attrill noted tariff impacts on inflation may only emerge in August or September.
Upcoming US wholesale prices and retail sales data will also shape market sentiment.
Tokyo’s rally was attributed to easing trade tensions and speculation of US rate cuts.
Hong Kong, Shanghai, Sydney, Taipei, Mumbai, Jakarta, and Manila also posted gains.
London, Paris, and Frankfurt followed the positive trend in early trading.
Seoul, Singapore, and Wellington were among the few markets to decline.
Traders returned from a long weekend, boosting activity in several Asian exchanges.
The Fed’s next policy decision in mid-September remains a key focus for global markets. – AFP