The skyline at Bejing's central business district in China. Picture: 123RF/SEAN PAVONE
Shares in the region extended gains on Tuesday after Beijing said Liu He, China’s vice-premier and chief trade negotiator, held a call with US counterparts and that both sides reached consensus on solving relevant problems. That followed positive headlines in China and the US, which had helped bolster confidence.
“The broad trend is the markets are looking for a deal because trade has been the biggest factor weighing on global growth and holding back confidence,” said Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors in Sydney. Investors were encouraged by positive comments from US President Donald Trump, Chinese President Xi Jinping and Chinese state-owned media about the chance for an imminent trade deal.
The US has imposed tariffs on Chinese goods in a 16-month long dispute over trade practices that the US government says are unfair. China has responded in kind with its own tariffs on US goods. Sterling traded at $1.2904, holding onto overnight gains as polls show the ruling Conservatives as runaway favourites to win a December 12 election with a pledge to implement Britain’s divorce from the EU.