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Asian stocks finish at six-week high on trade relief

Asian stocks finish at six week high on trade relief

Asian stocks advanced to a six-week high on Thursday on hopes for a relief in U.S.-China trade standoff and expectations that the European Central Bank would kick off another wave of stimulus later in the day.  

Japan’s Nikkei 225 index closed 0.75 percent up at 21,759.61, the highest level since May. Australia’s S&P/ASX 200 rose 0.25 percent at 6,654.90, while Hong Kong Hang Seng index slumped 0.17 percent to 27,112 amid the non-stop protests. 

China’s CSI 300 index surged 1.08 percent to finish at 3,972.38 because of renewed optimism about U.S.-China trade talks.

In offshore trades, the Chinese yuan rose to the highest level in three weeks at 7.0739 per dollar.

U.S president Donald Trump said he will delay a planned tariff hike on Chinese goods by two weeks as a gesture of goodwill after China exempted a range of U.S. goods from its own tariffs. 

As any extenuating to the trade war between the two largest economies probably is going to support the equities to extend its gains this month after Bustling August.

Investors are awaiting the ECB meeting later on Thursday to see whether policymakers will support the shattered euro-area economy, taking into account the risks that Brexit could bring to global markets.

Analysts are predicting that the ECB would restart its bond purchases and cut its growth and inflation forecasts for the euro area. Such a move could provoke similar acts by the Federal Reserve and Bank of Japan next week.

Meanwhile, the U.S dollar rose against the Japanese yen to reach the highest level in six weeks at 108.175 yen, before narrowing some of its gains to trade at 108.030.

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