Asian stocks advance as Trump and Xi discuss trade
Asian equities climbed in early Monday trading, tracking US peers following a positive conversation between Donald Trump and Chinese leader Xi Jinping ahead of the US President-elect’s inauguration.
Shares in Australia, Japan and South Korea gained. A gauge of US-listed Chinese shares jumped 3.2% Friday as Trump described the talk between the two leaders as “very good.” US futures were slightly lower in Asian trading with Wall Street closed on Monday due to a holiday.
Trump and Xi discussed trade, TikTok and fentanyl, which may set the tone for relations in the early days of the new administration. Adding to the positive sentiment, TikTok started restoring service in the US on Sunday as Trump said he would halt enforcement of a law requiring the app’s Chinese owner to find a buyer for three months.
“The amicable call between Trump and Xi, while only a temporary reprieve amidst irrevocable strategic competition, is extra fuel to reignite bullishness in equities,” said Kyle Rodda, a senior analyst at Capital.com in Melbourne. “It’s particularly telling that Asian indices ought to open firmer today because of the news, having barely moved after much stronger than expected Chinese growth data on Friday.”
Still, traders are bracing for the first days of the Trump’s second term. He’s planning a flurry of executive orders around immigration, energy, federal workers and regulatory reform, to quickly implement his policy agenda upon taking office. The plans are said to include tightening restrictions on border crossings
