Asian stocks gained ahead of the US-China trade talks expected this weekend, after an initial agreement with the UK stirred up optimism over more tariff relief.
A regional gauge rose 0.7%, putting it line for a fourth straight week of gains. Indian stocks and bonds extended a slide after hostilities with Pakistan escalated.
Equity-index futures for the US and Europe edged up while yields on the 10-year US Treasury notes dipped slightly.
Gold snapped two days of declines to advance 0.3%. Investors are focused on the outcome of the weekend trade talks after US President Donald Trump said he believed the negotiations might result in tangible progress, with China making concessions.
Markets took some comfort and US stocks gained Thursday as Trump pitched his trade framework with the UK as the first step in his effort to overhaul the global economy.
“The positive risk sentiment from the UK/US trade framework may face a reality check this weekend in Switzerland,” said Eugenia Fabon Victorino, head of Asia strategy at Skandinaviska Enskilda Banken AB.
“If the first talks between China and US do not give a hint of an off ramp from sky high tariffs, the dollar will likely resume its decline. The US and China are unlikely to deliver on market expectations of a de-escalation as easily as the UK.”
