Aug 19, 2019: Asian markets rallied Monday following a strong lead from Wall Street and comments from Donald Trump's top economic adviser hailing “positive” trade talks with top Chinese negotiators.
Optimism that central banks will provide fresh support to head off a global economic recession has also lent much-needed support to regional equities after last week's sell-off, with eyes on an upcoming speech by Federal Reserve boss Jerome Powell for clues about its plans.
Investors were in an upbeat mood after White House chief economic adviser Larry Kudlow said that if talks between deputies from Beijing and Washington went well and “we can have a substantive renewal of negotiations” then “we are planning to have China come to the USA and meet with our principals to continue the negotiations”.
He added that high-level phone talks last week were “a lot more positive than has been reported”.
Trump provided further cause for hope by tweeting: “We are doing very well with China, and talking!”
Kudlow also raised the prospect of using cash taken from higher tariffs on Chinese goods to pay for tax cuts.