WORLDWIDE – The Asian stock market improved as investors chose to look at President Donald Trump’s comments in a positive light. This same optimism is being felt in Europe where shares are expected to open higher.
The Hang Seng Index of Hong Kong went up 0.7% to 26,401.47. The Nikkei 225 jumped 0.2% to 23,352.81 while South Korea’s KOSPI also enjoyed gains of 0.9% to end the day at 2,078.77. Australia’s S&P/ASX 200 rose by 0.2% to 6,697.40. Shares in Taiwan and the rest of Southeast Asia also went up. However, the Shanghai Composite Index stayed flat at 2,899.97.
Trump’s comments remained upbeat on Thursday as he stated that the trade talks between the United States and China are “moving right along.” When pressed about the additional tariffs that might be levied on China on December 15, the statesman said they weren’t discussing that. But he did emphasize that the two parties are conducting “very major discussions.”
The US Treasury Secretary, Steven Mnuchin, made similar comments to reporters on Thursday. He said that the trade talks remain on track, but that the US is not constrained by a deadline.
The optimistic comments were good enough to get traders buying. It’s also prompting the European stock market to push forward. The region’s stock futures are trading up by about 0.2%.
The Pan European Stoxx 600 dropped by 01%. Germany’s DAX and the UK’s FTSE 100 both slid down 0.7%. Meanwhile, the CAC 40 Index of France enjoyed minimal gains.
Their American counterparts fared marginally better. The Dow Jones and the Nasdaq both rose by 0.1% while the S&P 500 gained 0.2%.
Investors are praying that China and the US reach a compromise, with the trade deal becoming an obsession to many. But as the Mizuno Bank stated in its report, there’s no “clarity on the deal.” However, the remarks of the discussions being on track have soothed traders and have helped ease tensions.
Investors are also nervously waiting for the US to release its non-farm payrolls information on Friday. The data will give some hint as to the state of the country’s economy and impact tomorrow’s trading.
Economists believe the unemployment rate in the US will stay a 3.6%. Employment numbers are expected to be up by 180,000 in November. It already saw a rise of 128,000 jobs back in October.
Meanwhile, HIS Markit’s Report on Jobs revealed that the labor market in the United Kingdom is still challenging as the country contends with the uncertainty of Brexit and the upcoming elections.