TOKYO - Asian stocks, led by Chinese shares, gained on Tuesday as markets basked in relief following the U.S. decision to hold off from imposing import tariffs on Mexico as the two governments agreed a deal to combat illegal migration from Central America.
Relief that the United States had stepped back from an immediate imposition of tariffs on Mexico encouraged buyers, though U.S. Secretary of State Mike Pompeo warned the United States could still slap tariffs on Mexico if not enough progress was made on its commitment to stem illegal immigration. [.N]
The U.S. president has repeatedly said he expected to meet Xi at the June 28-29 summit in Osaka, Japan, although China is yet to confirm any such meeting. Economists at Societe Generale said in a note that “the probability of the U.S.-China trade conflict drawing to an amicable conclusion has decreased significantly over the past few weeks.”
The dollar was up 0.15% at 108.625 yen and the euro was steady at $1.1314 following a loss of 0.2% the previous day.
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