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Asian markets resume rally on earnings hopes, trade optimism

AFP  |  Hong Kong 

Asian markets chalked up healthy gains Monday as investors cheered a strong start to the US earnings season, while Donald Trump's indicated trade talks with were in their end-stage.

The gains put a regional equities rally back on track after last week's stutter, supported by data last week showing a sharp jump in credit growth in as easing measures kick in, while exports beat expectations and inflation perked up.

New York's three main indexes provided a positive lead after Wall Stret titan recorded a pick-up in profits, suggesting the economy remains in rude health and fuelling optimism for upcoming corporate reports.

"The environment of easier financial conditions is beginning to have an impact on the broader economy," Binay Chandgothia at told TV.

"If that is the case and growth does pick up, you'll see an uptick in expectations and earnings as well, which should help continue the rally."

In early trade Hong Kong was up 1.1 per cent while jumped 1.8 per cent, with investors looking ahead to the release of Chinese growth figures Wednesday. went into the break 1.5 per cent higher, gained 0.2 per cent, while Wellington added 0.4 per cent and and both jumped 0.7 per cent.

and were also up though edged down slightly.

Investors were back in a buying mood after last week's gyrations that came on the back of concerns about a possible new trade war between the US and the as Trump threatened to hit the bloc with tariffs over subsidies to aviation giant

Buying was also being supported by comments from Steven Mnuchin, who said at the weekend that he was "hopeful we're getting close to the final round of concluding issues" on the trade talks.

The remarks were picked up as another positive sign that the trade war between the world's top two economies, which helped hammer global markets last year, could be nearing an end.

The said the world economy should start to bounce back towards the end of the year, as long as China and the US resolve their differences.

US officials are also kicking off two days of trade talks with later in the day in with both sides previously saying they wanted to reach an agreement quickly.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, April 15 2019. 09:10 IST
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