Current relief from U.S.-China political tensions resulted in a rise in Chinese stocks. Morgan Stanley Capital International (MSCI) Asia Pacific Index has grown by 0.8 percent in Hong Kong, the biggest increase in almost a month.
This week, traders drove an increase in Asian stocks as they positioned for a push of central bank meetings. The region is led by Chinese equities in the midst of lightening up in the U.S.-China political tensions.
As of 5:20 pm in Hong Kong, the MSCI Asia Pacific Index increased by 0.8 percent to 145.46. It was the biggest increase in nearly a month. Crude oil continued to drop below $50 per barrel.
U.S. employers had put in more jobs at an above-average rate, according to the data released last week. Traders are now looking into the probability of more increases in interest rates this year.
The rate decision of the Federal Reserve is will be released on Wednesday in Washington. On that week, officials in Japan and the U.K. will also meet.
In an interview with CNN on Monday, Steve Schwarzman said that Trump would most likely alleviate his criticisms of China. During his campaign, Trump accused China of unfair trade policies and of manipulating the country’s currency.
Schwarzman is one of President Donald Trump’s top economic advisers. His statement gave a boost to the yuan.
This is the time to buy Chinese stocks, according to analysts at Goldman Sachs. Earnings are expected to rise with the reflation.
An increase of 13 percent from 10 percent is estimated for MSCI China’s earnings. The growth is attributed to increasing nominal growth, political stability prior the National People’s Congress and advantageous flows, based on a note from Goldman Sachs on Monday.
With Trump’s efforts to alleviate U.S.-China political tensions, the traders can expect the rise in Chinese stocks to continue.