Asian stock markets held near an eight-month high on Thursday as investors awaited the latest developments in the Sino-US trade negotiations, and both sides seemed closer to signing an agreement. Risk preference improved, pressure on safe havens such as the yen.
The MSCI Mingsheng Asia-Pacific (except Japan) index took a break after five consecutive gains, which pushed it to its highest level since the end of August last year. China's stock market opened higher, with the Shanghai and Shenzhen 300 index. CSI300 up 0.9%, while Hong Kong's Hang Seng index. HSI slightly weakened.
Nikkei index. N225 rose 0.2% to a one-month high.
"Risk appetite may be mixed Thursday, with investors digesting trade negotiations and disappointing U.S. economic data," said Nicholas Mapa, economist at ING.
The service sector activity index hit a 19-month low in March, with private employment growth below expectations, highlighting the weakening economic momentum and supporting the Federal Reserve's move to suspend interest rate hikes this year.
Investors are worried about a sharp slowdown in economic growth in the first quarter.
"The focus remains on the current Sino-US trade negotiations and the U.S. employment data to be released on Friday," Mapa added.
This week's media coverage of progress in Sino-US trade negotiations boosted risk appetite. Bloomberg reports that the United States has set a deadline for China to meet its trade commitments until 2025.
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