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US-China trade talks: Asian markets bounce back for positive news



Hong Kong Hang Seng Index ( HSI ) was slightly earlier, but down by about 0.2% around 2 am Hong Kong time. It fell 1.9% on Monday.

Chinese government statistics showed on Tuesday that profits from China's industrial companies rose 2.6% in July, down 3.1% in June.

But the Chinese economy still faces "relatively high downward pressure," said in a statement Zhu Hong, a senior statistician at the National Bureau of Statistics.

The reverse growth is mainly due to infrastructure costs, including rail projects, writes Iris Pang, an economist at ING Group, in a report Tuesday.

She said that there were still some risks faced by manufacturers ̵

1; private companies that have contracts to support such projects run the risk of default if it takes too long to get paid from their work. Pang writes that the Chinese Central Bank could help support economic policies by offering targeted liquidity to these types of businesses to help them be stable.

The Japanese Nikkei ( N225 [19459003)]) increased by 1.1%. South Korea Kospi ( KOSPI ) also gained 0.3%.
Markets in the region fell on Monday following tariffs announced by the US and China. However, the trade war has turned a positive turn after signs that the two sides may return to the negotiating table. European and US stocks rose.

While the mood is now not as "terrible" as it was after the weekend's escalation, "there remains doubt as to how specific the last turn is," writes Jingyi Pan, a market strategist for IG Group, in a research note on Tuesday.

  Dow Earns 270 Points Due to Commercial Optimism

US President Donald Trump told reporters in France, at least, that China called last night to convey a desire to return to the talks. Asked later about Trump's remarks, Chinese Foreign Ministry spokesman Gen Shuang said he had not "heard about the weekend phone calls that the United States mentioned."

Pan noted the "lack of confirmation from China" in his research note, adding that "few can expect a straight path to a delayed transaction, regardless of the type of conciliation notes. "[19659004] The Central Bank of China also set its daily reference rate for the yuan at 7.081 for one USD, another 11-year low. But the currency was trading more strongly than on Monday, both onshore and offshore. .

Bank of America Merrill Lynch analysts predict that the exchange rate will reach $ 7.50 to one US dollar by the last quarter of the year. They expect the currency to gradually weaken, but may decline more sharply, " when tariff increases are confirmed or escalated. "

Other analysts said that China showed no sign of engaging in a full-fledged currency war, but added that the escalating trade war may have given Beijing less incentive to support its currency in the face of increasing economic pressure.

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