Global stock markets approached record highs on Friday after China and the United States agreed to phase out tariffs imposed by trade wars, a key requirement for Beijing to sign a trade agreement. The trade war between the two countries has led to the slowdown of global economic growth and the turbulence of global market.
MSCI Mingsheng global stock index rose slightly to 543.70, only slightly lower than the record high of 550.63 reached in January 2018.
The MSCI Mingsheng Asia Pacific Index (excluding Japan) edged up 0.2% in early trading, while the Nikkei index. N225 rose 0.75% to a 13-month high.
Chinese and U.S. officials said Thursday that the two sides agreed to lift tariffs on each other's goods during the 16 month long trade war as part of the first phase of the trade agreement, further demonstrating progress in negotiations to resolve the conflict, although there are still differences.
"The Sino US trade dispute seems to be about to find a solution, while the developed countries adopt very loose monetary policy, which will boost the risk assets," said Masahiro Ichikawa, senior strategist of Sumitomo Mitsui DS asset management.
China's Ministry of Commerce said the two countries had agreed to phase out the tariffs, but did not give a specific timetable.
However, as part of the first phase of the trade agreement, the agreement between the United States and China on the elimination of existing tariffs faces strong opposition from internal and external advisers of the White House, according to several people familiar with the matter.
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