Asian stocks rose along with US equity-index futures after China and the US made “substantial progress” on their trade talks, spurring a risk-on mode.
Gold tumbled as much as 2% on easing demand for havens. Shares in China and gauges across the region gained, with the Hang Seng Index advancing for an eighth day, the best run in a year. Futures contract for the S&P 500 rose 1.4% and the Nasdaq 100 jumped 1.9%.
The dollar strengthened against traditional havens like the Swiss franc and yen and outperformed most of its European peers.
However, the greenback weakened against the yuan and currencies sensitive to China’s economy like the Aussie and kiwi.
Global bonds retreated with Treasury yields rising across the curve and European debt futures lower.
While stocks have rallied recently – the S&P 500 Index has almost risen back to where it was prior to President Donald Trump’s announcement of reciprocal tariffs in early April – further gains will depend on the de-escalation of the trade war between the US and China.
