Asian markets rally on fresh trade hope

International Live: Asian markets rose Monday on fresh optimism over the long-running China-US trade talks after Beijing offered an olive branch on the key issue of intellectual property, while Donald Trump hailed progress on the agreement.

Hong Kong stocks led the regional advance with pro-democracy parties on course for a landslide in local elections that could put pressure on the local government and Beijing to act after months of protests that have hobbled the city’s economy and transport.

The week got off to a strong start after China said at the weekend it would hike penalties on violations of intellectual property rights while also look at reducing the thresholds for criminal punishments of those who steal IP.

Global markets have rallied in recent weeks on expectations the economic superpowers will sign a mini pact as the first part of a wider trade deal, though dealers are growing edgy at the lack of detail from either side. There are also concerns about how tariffs will be wound back, with China insisting they are lifted as part of any agreement.

On Monday, Tokyo ended the morning session 0.9 percent higher, while Shanghai rallied 0.5 percent and Seoul piled on more than one percent. Singapore jumped 0.4 percent, Sydney climbed 0.5 percent and Taipei gained 0.2 percent, with Wellington also rising.

“The markets are pretty much priced for a deal to go ahead, and that may be the case, but we may see that pushed out to 2020,” Eleanor Creagh, market strategist at Saxo Capital Markets, told Bloomberg TV. “We can see China make concessions on intellectual property… also on the currency and agricultural purchases. But the key sticking point is really going to be the rolling back of tariffs.”

Dhaka 25 November (campuslive24.com)//AZ

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