Asian Stocks Hit 7-month High, Yuan Leaps to Record High from July

Asian Stocks Hit 7-month High, Yuan Leaps to Record High from July

Asian stocks hit a 7-month high, China’s yuan leaped, and safe-harbor assets slid Tuesday, amid indicators of goodwill between the U.S. and China, as the world’s two largest economies ready to sign a truce in their trade battle.

The U.S. Treasury Division Monday stated China ought to no longer be labeled a currency manipulator – a tag it applied as the yuan plunged in August.

China, meanwhile, allowed the tightly controlled currency to climb to its highest point since July, after fixing the yuan’s trading-band midpoint at its firmest in over five months.

The steps come as a Chinese delegation arrived in Washington ahead of Wednesday’s inking of the Phase 1 trade deal, seen as pacifying a conflict that has upended the world economy.

MSCI’s broadest index of Asia-Pacific shares outside Japan hit its highest since June in morning trade, driving world shares to a record high.

Japan’s Nikkei contributed 0.7% and hit its highest point in a month. Hong Kong’s Hang Seng surged to its highest since May and Shanghai blue chips scaled heights not met since January 2018, though both later stripped gains.

Australia’s S&P/ASX 200 surged 0.7% to a record intraday high. Gold plunged, and the safe-harbor Japanese yen declined to a seven-month low.

Overnight Wall Street logged record closing highs, pushed by sharp rises in technology shares as traders bet companies similar to Facebook, Microsoft, and Apple may need the most to gain from revived world growth.

The S&P 500 surged 0.7% to a record closing high, while the Nasdaq Composite contributed 1% and also closed at a record tip. The Dow Jones Industrial Average climbed 0.29%.

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