Asian stocks soar as US, China said to agree on phase-I deal

The US and China have reached an agreement over the terms of a “phase one” trade deal, multiple US media sources as well as South China Morning Post reported on Thursday.

Dec 13, 2019 03:12 IST India Infoline News Service

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Asian markets jumped on Friday on news regarding the Sino-US trade deal and a likely major election win by Britain’s Conservative Party.

The US and China have reached an agreement over the terms of a “phase one” trade deal, multiple US media sources as well as South China Morning Post reported on Thursday. The latter also said that the new tariffs to take force Dec 15 onwards have been set aside. The deal has the approval of US President Donald Trump, Bloomberg reported.

The US is also expected to cut duties already in place, Myron Brilliant of the US Chamber of Commerce told CNBC, citing US administration sources.

No comment on the status of the agreement has been received from the White House nor the Office of the United States Trade Representative. China also is yet to confirm about whether it will go ahead with postponing its own tariffs of between 5 and 10% on US goods, which will take effect on Sunday.

Elsewhere, the pound hit its highest level since mid-2018 as UK exit polls seemed to have ruled out the possibility of a win by the left-wing Labour opposition.

In Asia, Japan’s Nikkei climbed 2.1% to a 14-month high, while South Korean stocks rose sharply 1.2%. Wall Street also ended with record highs on Thursday.

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