Markets rise as China-US truce extends

ASIAN markets mostly rose yesterday, with Tokyo hitting a record, as investors welcomed the extension of a China-US tariff truce but looked ahead apprehensively to the release of key US inflation data later in the day.

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Donald Trump’ widely expected trade announcement avoids the reimposition of sky-high levies and allows officials from Washington and Beijing to continue talking into November to settle their standoff.

In an executive order, the White House reiterated its position that there are “large and persistent annual US goods trade deficits” and they “constitute an unusual and extraordinary threat to the national security and economy of the US”.

However, William Yang, an analyst at the International Crisis Group, said: “Beijing will be happy to keep the US-China negotiation going, but it is unlikely to make concessions.”

With the president's tariffs set and talks with various trading partners ongoing, markets are now turning their focus back towards the possible economic outlook and the impact of ‘Trump’s trade war.