Asian shares rise as Trump boosts US-China talks

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HONG KONG, Feb 13, 2019 (BSS/AFP) – Asian stocks climbed Wednesday as US
President Donald Trump said he could extend the deadline for a trade deal
with China, appearing to boost the prospects of an agreement.

Trump said “things are going well” at preliminary talks in Beijing, where
top economic officials will gather Thursday seeking an accord to stop sharp
US tariff hikes that could damage the global economy.

“If we’re close to a deal, where we think we can make a real deal … I
could see myself letting that slide for a little while,” the US president
said of his March 1 deadline.

He added that he expects a meeting with counterpart Xi Jinping to happen
“at some point”.

The comments all improved market sentiment on the likelihood of a deal to
prevent US tariffs on $200 billion in Chinese imports more than doubling next
month.

Washington is demanding changes from Beijing on what it says are unfair
commercial practices.

Tokyo added 1.5 percent, Hong Kong rose 0.4 percent and Shanghai gained
0.2 percent on the news, following Wall Street’s lead.

However, some analysts struck a cautious tone, noting that much work needs
to be completed before a framework agreement is in reach.

“The rally in stocks has been based on hope rather than any concrete
agreements overnight,” warned Oanda senior analyst Jeffrey Halley, predicting
short-term volatility to come as headlines emerge from Beijing.

Sydney shed 0.3 percent, with calls for a snap election amid political
tensions over refugees adding to underwhelming corporate earnings and subdued
metal prices.

Nonetheless, renewed global investor confidence saw a movement away from
the greenback, which has enjoyed a strong rally in the past week, to riskier
currencies.

The pound moved upwards closer to $1.29, despite no-deal Brexit fears as
Prime Minister Theresa May was accused by the opposition of “running down the
clock” and “playing chicken” with Brussels over talks.

Trump’s suggestion that another chaotic US government shutdown was now
unlikely following a deal struck in Congress over border security further
fuelled risk appetite.

The deal to offer nearly $1.4 billion for construction of a Mexico border
wall, as well as other security measures, fell far short of Trump’s demands
but has been presented as a workable compromise.

“I don’t think you’re going to see a shutdown,” said the president.

Elsewhere oil continued its climb after heavyweight Saudi Arabia slashed
output and exports fell in crisis-hit Venezuela.

– Key figures around 0240 GMT –

Tokyo – Nikkei 225: UP 1.5 percent at 21,1180.32

Hong Kong – Hang Seng: UP 0.4 percent at 28,286.26

Shanghai – Composite: UP 0.2 percent at 2,677.85

Euro/dollar: UP at $1.1335 from $1.1315 at 2130 GMT Tuesday

Dollar/yen: UP at 110.61 yen from 110.48 yen

Pound/dollar: UP at $1.2899 from $1.2896

Oil – West Texas Intermediate: UP 46 cents at $53.56 per barrel

Oil – Brent Crude: UP 48 cents at $62.90 per barrel

New York – Dow: UP 1.5 percent at 25,425.76 (close)

London – FTSE 100: UP 0.1 percent at 7,133.14 points (close)