Confirmation of US-China trade talks fuel investor's stock and spirit By Reuters

By Stanley White

TOKYO (Reuters) – Asian stocks advanced on Thursday and US futures surged after China announced the opening of trade talks with the United States in early October, raising hopes They can defuse their trade war before it causes further damage to the world economy.

The largest MSCI index of Asia Pacific shares out of Japan rose 1.08%, its highest level since August 2, while the Shanghai Composite Index has jumped 1.7%. Japan added 2.4%.

US equity futures canceled initial losses and increased 1%.

Pan-European stocks rose 1.01%, Germany 1.04% and futures 0.64%.

The dollar's jump against the dollar in offshore trading, while secure assets such as gold, the Swiss franc and the yen have fallen.

The confirmation of trade negotiations by China has added overnight optimistic geopolitical news. A parliamentary vote in Britain has put a stop to the exit without any agreement from the European Union of the European Union. Hong Kong withdrew a controversial extradition bill that triggered recent protests, and political unrest in Italy seemed to be easing.

The Chinese Ministry of Commerce has announced that its trade team will consult with its US counterparts in mid-September to prepare for negotiations in early October, alluding to progress in reducing trade friction.

Both sides agreed to take concrete steps to create favorable conditions, added the ministry without giving further details.

"Since yesterday, the markets have had little inconvenience because of what happened in Hong Kong, but the talks between the United States and China are now at the rendezvous," he said. Masayuki Kichikawa, chief strategist at Sumitomo Mitsui Asset Management in Tokyo.

"The same goes for Brexit, which means less risk of loss."

Any signs that Washington and Beijing are on the verge of reducing or resolving their trade dispute would provide a significant relief to the global economy, but many analysts believe the two sides are engaged in a longer and more expensive battle.

Image of the Trade Balance – https://graphics.reuters.com/USA-STOCKS/0100B05N0B0/trade-balance.png

Hong Kong shares erased their initial losses of 0.3%. They had jumped on Wednesday afternoon after leader Carrie Lam announced that she was withdrawing an extradition bill that sparked months of often violent protests in the Asian financial center.

Lam said Thursday that she hoped the official withdrawal of a controversial extradition bill and other measures would help resolve the political crisis in the city.

On the foreign exchange market, the pound sterling maintained its gains against the dollar in Asia after recording the largest gain in more than five months on Wednesday, after legislators voted to prevent Prime Minister Boris Johnson from withdrawing the Great Britain. Brittany of the European Union without an agreement on 31 October.

However, more than three years after the UK voted little to leave the EU, the Brexit result is still unclear, as the results may go to a collapse of the EU. 39; EU to a complete abandonment of the company.

In contrast, the dollar fell 0.2% to 7,1340 yuan.

decreased by 0.5% to $ 1545.58 an ounce.

The dollar rose 0.17 percent to 106.60 yen, up 0.3 percent to 0.9839 Swiss francs.

US Treasury yields rose in Asia and the yield curve became more pronounced, signaling that investors were willing to take riskier assets.

The 10-year yield was 1.5145%, while the two-year yield was 1.4899%.

The gap between the two and ten-year Treasury yields, the measure of the most commonly used yield curve, has come close to the highest since August 21st.

The curve reversed on August 14 for the first time since 2007, when long-term yields traded below short-term returns, which is a widely accepted indicator of the coming recession.

Western Texas Intermediate Intermediate crude has changed little at $ 56.27 per barrel.

Crude oil futures jumped 4.3% on Wednesday, the largest daily increase since July 10, due to positive economic data from China and the easing of geopolitical concerns.