Renewed Hopes On US-China Trade Deal Boost Asian Stocks

Asian stocks have been boosted on Tuesday after talks between the United States and China emanated positively as news of coronavirus vaccines are being laid out.

According to a report, an increase of 0.18 percent has been seen from MSCI's largest index of Asia-Pacific shares outside Japan - indicating that the said stocks are approaching a two-year high.

The said activities in Asian stocks come from reports that said top officials from the U.S. and China are starting to see progress over issues around the Phase 1 trade deal which the two countries initiated in January.

Liu He, the Vice Premier of the People's Republic of China, had spoken with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin affirming their commitments to the said January deal.

Analysts from Citigroup remarked in a research note that this agreed with past expectations which saw the Phase 1 deal sustaining even the flaring tensions of the strained U.S.-China relations.

Japan's Nikkei recovered to pre-pandemic levels as it upped a sharp 1.5 percent. Similarly, Australia's S&P/ASX 200 also rose to 0.4% from banking stocks. On the other hand, earlier gains have been lost as Hang Seng plummets to 0.7% and Shanghai Composite falls to 0.19%.

When asked how the current crisis faced by countries worldwide has negatively impacted market sentiments, John Milroy who is Ord Minnett's investment advisor said that markets will continue to sustain reduced global activity levels as investors who are trying to cope with the pandemic looks even more seriously ahead.

Market motivators included increased optimism about medical solutions to end the pandemic which included more developments about the vaccines and the recent approval given by U.S. regulators on the use of blood plasma from recovered COVID-19 patients - lifting S&P 500's record shares to an increase of 1%. The same trend has been followed by AstraZeneca whose experimental vaccines are being looked into for possible fast-tracking.

After such a landmark shift in market movements, investors are anticipating a speech to be done by Jerome Powell, current Federal Reserve Chairman, regarding its initials plans on inflation.