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Asian Markets Gain; ASX 200 Inches Up After RBA Minutes

Published 12/16/2019, 09:50 PM
Updated 12/16/2019, 09:51 PM
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Investing.com - Asian markets gained in morning trade on Tuesday, with Australian stocks trading slightly higher after the release of the Reserve Bank of Australia’s (RBA) December meeting minutes.

The ASX 200 was up 0.1% by 10:00 PM ET (02:00 GMT). Minutes from the RBA’s latest policy meeting showed the central bank was “prepared to ease monetary policy further if needed.”

“Members agreed that it would be important to reassess the economic outlook in February 2020, when the Bank would prepare updated forecasts,” the meeting minutes read. “As part of their deliberations, members noted that the Board had the ability to provide further stimulus to the economy, if required.”

China’s Shanghai Composite and the Shenzhen Component climbed 0.2% and 0.3% respectively.

Hong Kong’s Hang Seng Index advanced 0.5%.

Japan’s Nikkei 225 traded 0.4% higher. South Korea’s KOSPI gained 0.7%.

Asian stocks received continued support from news of a phase one trade deal between the U.S. and China. Under the agreement, the U.S. suspended its plan to impose new tariffs on Chinese goods, while China promised to purchase more American agricultural products.

Reports said the deal will be officially signed in early January, but it is unsure when the next phase of negotiations will begin.

“I think markets are justifiably excited of any progress on the U.S.-China trade negotiation,” Hannah Anderson, global market strategist at J.P. Morgan Asset Management, told CNBCin an interview.

“However, there does remain quite a bit of work ... left to do and so I think markets are going to have a belated awakening to the fact that they can’t exactly dismiss this risk throughout 2020,” Anderson warned.

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