Asian stock markets strengthened Monday, with signs of progress in the Sino-US trade impasse and a willingness to take risks, but investors were cautious about the damage that the trade war had caused to the global economy.
China's data do highlight the economic pain, with imports and exports in US dollars falling faster than expected in September.
Liquidity is low due to the closure of markets in Japan and the partial closure of markets in the United States on Colombia Day. The MSCI Mingsheng Asia-Pacific (excluding Japan) index rose 1.1% in quiet trading.
Australian stock market rose 0.7%, Korean Composite Stock Index (KOSPI). KS11 rose 1.3%, Shanghai Composite Index. SSEC rose 1.6%.
Although Japan was closed, Nikkei Index futures closed at 22,075 and Nikkei Index. N225 closed at 21,798 on Friday. E-Mini S&P 500 Index futures rose 0.2%.
The U.S. and China agreed on the first phase of the trade agreement on Friday, prompting President Trump to suspend the threat of tariff increases against China, which will take effect next Tuesday, but officials said the agreement still needed to be written and more work was needed to finalize it. Still, market sentiment has been boosted.
The agreement covers some aspects of agriculture, exchange rates and intellectual property protection, marking the greatest progress in 15 months between the two countries.
However, analysts recommend caution.
"We've seen truce agreements before and then break them down," said Xu Changtai, Asia's chief market strategist at Morgan Asset Management.
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