Editor's PiCK
Asian stocks rise after US-China trade talks wrap; US futures fall
Summary
- It was reported that after US-China trade talks concluded, Asian stock markets rose while US stock futures declined slightly.
- The US negotiation team stated that a framework was established for restoring the flow of key commodities such as rare earths, but no specific details were disclosed.
- Investors are advised to monitor the release of the US May Consumer Price Index (CPI) and watch for substantive progress in negotiations as market volatility may ensue.
Asia-Pacific indices continue to climb
US negotiation team says a framework to restore flows of key commodities, including rare earths, has been set
After the US-China trade talks ended without details being disclosed, on the 11th (local time) US stock futures fell, while Asian and European stock markets rose.
On this day, at around 6 a.m. Eastern Standard Time, S&P 500 futures and Dow futures both slipped slightly by 0.1%. Nasdaq futures were little changed.
In Asian markets, the Hang Seng Index in Hong Kong rose 0.8%, the Shanghai CSI climbed 0.5%, the South Korean KOSPI soared 1.2%, and Japan’s Nikkei 225 advanced 0.5%. Excluding Japan, the MSCI Asia Pacific Index rose 0.3%, while the MSCI Emerging Markets Index gained 0.6% each. The Stoxx Europe 600 Index in Europe added 0.1%.
US Treasury yields increased by 1 basis point (1bp = 0.01%) to 4.48% ahead of the May Consumer Price Index (CPI) release. The US dollar strengthened slightly against the Japanese yen, trading at 145.05 yen.
Meanwhile, after Elon Musk expressed regret over his recent outburst on social media toward President Trump, Tesla stock jumped 2.1% in premarket trading.
Global financial markets are closely monitoring whether the world’s two largest economies, the US and China, can ease trade tensions. After about 20 hours of talks in London, US officials mentioned that both sides set the framework for reviving the flow of sensitive goods such as rare earths, though details were not provided. Li Keqiang, the chief representative of China’s trade delegation, called the negotiations “in-depth and candid,” but did not elaborate. The plan will require approval from President Trump and President Xi Jinping.
Guy Miller, Chief Market Strategist at Zurich Insurance Group, told Bloomberg TV, “I don’t think optimism is warranted that this will be resolved.”
On this day, the US May Consumer Price Index will be released. It is expected that, as companies reflected tariff costs for some items, CPI rose 0.3%p from the previous month in May. Accordingly, the core CPI, considered a better gauge of inflation, is expected to be 2.9% annually, higher than the previous month.
Jeff Yu, currency and macro strategist at The Bank of New York Mellon Corporation, said, “If a significant shock occurs, the range of fluctuation could widen,” anticipating the market will respond mainly to economic data.
Junga Kim, Contributing Reporter kja@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
