London’s FTSE 100 is tipped to rise 0.3 percent, according to FT. And S&P 500 stock futures could see losses of 1.3 percent when trading begins in New York later on Tuesday.
Tokyo’s Topix benchmark was up 0.9 percent on Tuesday in Asia while Hong Kong’s Hang Seng index gained 1 percent. Mainland China’s CSI 300 of Shanghai- and Shenzhen-listed shares rose 0.3 percent.
The uncertainty came after Peter Navarro, who is Mr Trump’s chief trade adviser, told Fox News a phase one trade deal between the US and China was “over”.
He said Beijing was too slow to warn the world about coronavirus, which originated in Wuhan late last year.
But Mr Trump tweeted shortly after Mr Navarro’s interview that the trade agreement with China was “fully intact”.
And Mr Navarro then said he had “been taken wildly out of context” when talking to Fox News.
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6am update: Asian stocks climb after wild swings on US-China trade mix-up
Asian shares rebounded on Tuesday after Mr Trump provided assurance that the US-China trade pact was “fully intact”, following confusing statements from the White House earlier over the fate of the deal.
MSCI’s broadest index of Asia Pacific shares outside of Japan rose 0.6 percent to 516.6 points after earlier going as low as 509.9. Chinese shares regained lost ground too, with the blue-chip index last up 0.3 percent.
Risk sentiment had taken a knock early in the Asian day after White House trade adviser Peter Navarro said the trade deal with China was “over”, linking the breakdown in part to Washington’s anger over Beijing not sounding the alarm earlier about the coronavirus outbreak.
The comment caused a kneejerk selloff in equities markets, although sentiment turned around quickly after a statement from Navarro that his comment had been taken out of context.
Trump also soothed nerves when he tweeted: “China trade deal is fully intact. Hopefully they will continue to live up to the terms of the agreement.”
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