Stocks in Asia edged higher as investors monitor developments on the US-China trade

Stocks in Asia edged higher in Wednesday (Nov. 6) morning trade as investors monitor developments on U.S.-China trade. China is pushing U.S. President Donald Trump to remove more tariffs on about $125 billion worth of Chinese goods imposed in September as part of the “phase one” trade deal, reports said. (CNBC)

China is setting its price for signing an interim trade deal with the United States: drop the tariffs. The question is whether President Donald Trump will pay it. With talks underway over a narrow agreement to defuse the escalating trade war, Beijing has asked the Trump administration to eliminate some of the duties the president has imposed. China also made clear that new tariffs are a nonstarter. (Bloomberg)

A sell-off across global bond markets deepened amid optimism over the potential removal of U.S. tariffs on Chinese goods, while stronger-than-expected data on the U.S. services sector also dented investors’ appetite for haven assets. (Bloomberg)

China is reviewing locations in the U.S. where President Xi Jinping would be willing to meet with Donald Trump to sign the first phase of a trade deal between the world’s two largest economies. Officials in Beijing had hoped that if Xi traveled to the U.S. to sign stage one of the agreement it would be as part of a state visit, but they’re open to having him go even if it isn’t. No final decision has been made, said a Chinese official. (Bloomberg)

U.S. government debt yields rose Monday (Nov. 4) amid growing optimism in U.S.-China trade talks. The benchmark 10-year Treasury note, which moves inversely to price, was higher at around 1.786%, while the yield on the 30-year Treasury bond was also higher at around 2.275%. Market participants continue to closely monitor global trade developments. The U.S. and China both said on Friday that they had made progress in talks, stirring hopes of a trade agreement later this month. The language used to describe the progress, however, was less clear. (CNBC)

A key Federal Reserve official on Monday (Nov. 4) made the case for the central bank’s program of buying only the shortest-dated Treasuries to ensure the banking system has enough reserves. But she signaled an openness to make changes if they’re needed to keep markets calm. (Bloomberg)

Danareksa Sekuritas Debt Research