Asian markets tilted upwards on Friday morning in an effort to end the week higher after a week of choppy trading. Hong Kong’s Hang Seng index led the rally, trading up 1.05 percent as of 9:51 am. HK/SIN. Japan’s Nikkei 225 was up 0.51 percent and the Shanghai Composite was up 0.47 percent. The move higher followed Wall Street’s strong showing on Thursday which saw the Dow Jones Industrial Average end up 1.58 percent. The S&P 500 and the NASDAQ also ended higher on Thursday, buoyed by positive earnings reports and renewed optimism on reports of renewed trade negotiations between the United States and China.
Currency Movements
On the currency markets there was little movement early on Friday. The dollar traded 0.05 percent lower against the yen at 110.83, and was also modestly lower against the euro, trading at $1.1381. The greenback had been enjoying a strong rally during recent sessions but the rise higher was tempered by preparations for the new trade talks between Washington and Beijing which have now been scheduled for August 21-22. In advance of the talks, White House Economic Adviser Larry Kudlow warned Beijing not to underestimate President Trump’s commitment to push for updates to China’s economic policies. The talks come mere days before a fresh wave of U.S. tariffs on Chinese goods is planned. If implemented, the new tariffs will slap extra costs on $16 billion of Chinese goods.
The Chinese yuan was stable early on Friday morning after gaining more than 1 percent on Thursday. The currency hit a 19-month low of 6.9585 earlier this week.