It’s here. Bloomberg is reporting US President Donald Trump has signed a “Phase One” trade deal with China, which is bound to push up the Hong Kong and mainland China markets a day after they were boosted by the Federal Reserve’s decision to keep rates unchanged. Moreover, optimism around the trade deal pushed American equities to records overnight, and Asian stocks are expected to follow them and rise.
The deal also averts the introduction on Sunday of a new wave of tariffs on about US$160 billion of consumer goods from China, which will no doubt please top policymakers in Beijing, who have signalled a greater focus on maintaining economic stability in 2020. During a key economic planning meeting that concluded on Thursday, they called for contingency plans to offset growing global risks.
– Yujing Liu and Azar Zaidi in Hong Kong