Investing.com - Asian stocks were higher in morning trade on Tuesday as they took their cues from the U.S. markets. Fears over the possibility of a global trade war appeared to have eased somewhat after House of Representatives Speaker Paul Ryan put pressure on President Donald Trump to rethink his tariffs plan.
"We are extremely worried about the consequences of a trade war and are urging the White House to not advance with this plan," Ryan’s spokeswoman AshLee Strong said in a statement on Monday. "The new tax reform law has boosted the economy and we certainly don't want to jeopardize those gains," said Strong. House Republications were reportedly drafting a letter to Trump about trade concerns, but Trump has openly responded by saying he would not back down.
U.S. equities pushed higher following the development, with the Dow closed 1.4% higher and the S&P 500 rose 1.1%.
China’s National People’s Congress remained in focus on Tuesday. China reiterated its prudent monetary policies would remain neutral, noting that it targeted a 6.5% growth this year and would cut its target for budget deficit to 2.6% of its GDP from the previously stated 3%.
The Shanghai Composite opened 0.3% higher by 8:35pm ET, while the Shenzhen Component also gained 0.2%. Hong Kong’s Hang Seng Index jumped 1.7%.
Meanwhile, Japan’s Nikkei jumped 2.1% after four days of losses. Bank of Japan’s deputy governor nominee Masayoshi Amamiya’s comments received some attention as he said the central bank has the tools to eventually exit its monetary easing programme. His comments came after governor Kuroda said the BOJ would probably start considering the details of any exit in the next fiscal year.
Down under, Australia’s S&P/ASX 200 gained 1.2% as investors await RBA’s policy decision later in the day. The central bank is expected to keep its rates unchanged. Australia's 4Q current account deficit widened to $14.02 billion in the December quarter, from the September quarter’s $11.01billion. Retail sales number grew 0.1% M/M in January, missed the general consensus of a 0.4% growth.
Elsewhere, reports that North Korea’s Kim Jong-un agreed to meet his counterpart from the south Moon Jae-in for the first time gathered some attention, although impacts on the equities seemed to be limited. The KOSPI traded 1.4% higher in mid-morning.