Asian markets are positive, showing a rise in Friday morning trading, after China took certain steps to abate U.S. trade negotiators’ fears.
China approved a new law against the forced tech transfer by foreign companies, which was a serious problem in the United States and other countries. This step was intended to smooth trade deal differences, but it is unclear whether these actions would be enough.
President Donald Trump said Wednesday that he was in no hurry to make a deal, and said that the United States can still avoid negotiations if the terms of the deal would not be suitable. Larry Kudlow, chief economic adviser, said on Thursday that the meeting between Trump and Chinese President Xi Jinping would most likely not take place until the main trade issues were resolved, adding that Xi was “afraid” to sit at the negotiating table because of fear that Trump can just stand in protest and leave at the very last minute. Kudlow said that Xi wanted to have a formal signing ceremony, and not just negotiations, according to the Associated Press’s post.
In the meantime, investors calmed down, as the threat of global financial chaos regarding Brexit receded a bit, as British lawmakers decided to postpone the UK withdrawal from EU until June 30.
Japan’s Nikkei increased by 0.77 percent, South Korea’s Kospi jumped by 0.95 percent, Hong Kong's Hang Seng added 0.56 percent, the Shanghai Composite surged 1.04 percent, while Singapore’s and Australia’s ASX 200 shares dropped by 0.08 percent and 0.07 percent respectively at 8.25 GMT.
MSCI's index for Asia-Pasific region dropped by 0.34 percent on Friday.