Asian shares rise after new US-Canada trade deal

  • by Ahmed Mamdouh
  • October 1, 2018, 8:7 AM
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Most Asian shares ended higher on Monday as a new reformed NAFTA deal between the U.S. and Canada calmed nervousness about trade war and boosted demand on risky assets.

Overnight, the U.S. and Canada agreed a new USMCA trade deal, causing an improvement in sentiment on easing fears of a global trade war.

Japan’s benchmark Nikkei 225 index gained 0.5% today, closing at 24,245, the highest level since Nov. 1991, yet still far from its all-time high hit at the end of the boom in 1989.

The Japanese yen slipped to 114 per dollar, marking its lowest level since Nov 2017, as optimism in markets after a new USMCA trade deal sapped demand on refuges.

In China, the Shanghai Composite Index ended 1.06 percent up to 2,821.35, and Hong Kong’s Hang Seng index added 0.26 percent to 27,788.52.

South Korea’s Kospi index edged down 0.18 percent to 2,338.88, and Australia’s S&P/ASX 200 surged 0.57 percent to end at 6,172.30.

The U.S. dollar index, which tracks the green currency’s movements versus a basket of major currencies, traded higher at 94.81 after reporting a strong weekly gain.

Yet, the Canadian dollar and Mexican peso rallied were the biggest winners after the new trade deal.

The USDCAD pair opened on a downside gap to trade lower at 1.2813, the lowest since late May, compared to Friday’s closing at 1.2917.

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