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Asian Markets Surge, Dollar Rises Against Yuan, Yen, As US-China Deal Close To An End

The U.S. dollar traded up against the Japanese yen and the Chinese yuan on Thursday, as the governments of both countries that they are close to signing the first phase of the trade deal. Stock markets across Asia-Pacific also traded in green on Thursday.

Benzinga · 12/26/2019 09:58

The U.S. dollar traded up against the Japanese yen and the Chinese yuan on Thursday, as the governments of both countries that they are close to signing the first phase of the trade deal.

Stock markets across Asia-Pacific also traded in green on Thursday.

What Happened

President Trump, on Tuesday, said that he would hold a “signing ceremony” with his Chinese counterpart Xi Jinping.

“We will be having a signing ceremony, yes,” Trump said, according to Reuters. 

“We will ultimately, yes, when we get together. And we’ll be having a quicker signing because we want to get it done. The deal is done, it’s just being translated right now.”

China’s Ministry of Foreign Affairs and Ministry of Commerce both confirmed that China is close to signing the trade deal with the U.S., and they are winding up formal procedures before the agreement, in separate statements on Wednesday and Thursday, as reported by Reuters.

Why It Matters

The deal to end a more than A two-year-long trade war between the two countries seems imminent now, but the exact details of the trade agreement remain uncertain

China has agreed to increase agricultural imports from the U.S. but has reportedly refused to sign on a specific number.

Stock Market

China’s Shanghai Composite traded 0.85% higher at 3,007.35, and Shenzhen Component added 0.72%.

Japan’s Nikkei 225 was up 0.60% at 23,924.92 and TOPIX added 0.57%.

South Korea’s KOSPI was up 0.36% at 2,197.93.

Australia’s S&P/ASX 200 traded 0.13% higher.

Markets in Hong Kong were closed for Christmas on Thursday.

Currencies

The U.S. dollar traded 0.14% higher against the Chinese yuan at 6.999.

The dollar was also up 0.19% against the Japanese yen at 109.56.