AFP, Hong Kong :
Asia equities extended a global rally on Tuesday, with the US decision to no longer designate China a currency manipulator a further sign of easing tensions between the economic titans.
The Treasury announcement came days before the two sides are due to sign off on the first part of a wider trade agreement that has helped fan a rally in world markets.
It also led to a sell-off in safe-haven assets with the yen at a seven-month low and gold down almost one percent, while oil was also struggling with the US-Iran flare-up seemingly in the rear window for investors.
Asia was given a firm lead from Wall Street, where all three main indexes ended higher – with the Nasdaq and S&P 500 hitting fresh records – on reports the US was about to remove the manipulator label from China.
Donald Trump accused Beijing in August of weakening its yuan currency “to steal our business and factories”, re-stating a long-standing grievance.
But soon after the end of trade on Monday, the Treasury said in its semi-annual report to Congress that the unit had strengthened and Beijing was no longer keeping it artificially weak.
Asia equities extended a global rally on Tuesday, with the US decision to no longer designate China a currency manipulator a further sign of easing tensions between the economic titans.
The Treasury announcement came days before the two sides are due to sign off on the first part of a wider trade agreement that has helped fan a rally in world markets.
It also led to a sell-off in safe-haven assets with the yen at a seven-month low and gold down almost one percent, while oil was also struggling with the US-Iran flare-up seemingly in the rear window for investors.
Asia was given a firm lead from Wall Street, where all three main indexes ended higher – with the Nasdaq and S&P 500 hitting fresh records – on reports the US was about to remove the manipulator label from China.
Donald Trump accused Beijing in August of weakening its yuan currency “to steal our business and factories”, re-stating a long-standing grievance.
But soon after the end of trade on Monday, the Treasury said in its semi-annual report to Congress that the unit had strengthened and Beijing was no longer keeping it artificially weak.
