Asian markets rise on China-US trade hopes, pound edges down

Asian markets rose Tuesday on growing optimism that China and US will sign a partial tre deal next month, while pound dipped slightly as dealers await ar key Brexit vote in Westminster. Donald Trump reinforced hopes Monday that he and Xi Jinping will be able to put pen to paper on a mini pact, saying China h alrey started promised purchases of farm goods, and that first part of a wider commitment was almost complete. 

"We'll be able to, we think, sign a completed document with China on phase one," Trump said at White House, ding y would n move on to next phases. Tre Representative Robert Lighthizer said efforts were being me for it to be rey when leers meet at APEC summit next month in Chile. And Trump's ecomics viser Larry Kudlow indicated tariffs planned to go into effect in December could be cancelled if talks go well.

Increasing signs of progress in 18-month tre war provided some much-needed relief to global markets, with all three main indexes on Wall Street ending higher and Asia taking up le. Hong Kong rose 0.2 per cent, Shanghai ended up 0.5 per cent and Sydney gained 0.3 per cent. Singapore put on 0.9 per cent and Seoul rallied more than one per cent. Wellington, Taipei, Manila and Mumbai were also higher, while Tokyo was closed for a holiday. 

"Unlike previous tre talks where expectations centred on view that something is better than thing, this time around re appears to be a tangible and workable romap in place," said AxiTrer senior market analyst Stephen Innes. He said this was "supported by official confirmation that US and China were both on same p about intent to work towards phase one of a 'deal' by mid-vember".

"fact that phase two is even being discussed at this time... suggests that both US and China may have finally found a bridge that isn't too far". Trers are also keeping watch on events in London, where Boris Johnson will try on Tuesday to push his Brexit deal with EU through parliament before next Thursday's deline. Sterling rallied Monday to USD 1.3013 -- its highest since May -- but ticked back after House of Commons Speaker John Bercow refused prime minister's request to put his bill to MPs. On Tuesday it extended losses against dollar and euro. While many lawmakers say y need more time to re through details, re is a growing expectation government can muster eugh support to eventually push bill through later Tuesday. Still, with vote likely to be tight, trers are moving cautiously.

" prospect of an extension (to October 31 deline for leaving EU) has continued to support pound," said Michael Hewson, chief market analyst at CMC Markets UK. "For w, this appears to be acting as a short-term top, with markets reluctant to drive currency too much higher given that re could be many more political twists and turns before any deal gets across line." In early tre London and Paris were flat, while Frankfurt slipped 0.3 per cent.