On Thursday MSCI's broadest index of Asia-Pacific shares outside Japan edged up 1.54% trading near resistance levels. After China's central bank on Wednesday moved to avert a cash crunch in the economy by injecting a record $83 billion into the country's financial system it will give some cushion but not major relief until tariff war ends.
Most of Asian Indices trading at PAR , Investors in Asia might be less encouraged by a Wall Street Journal report that U.S. federal prosecutors were investigating Huawei Technologies, the world's largest telecommunications equipment maker, for allegedly stealing trade secrets from U.S. businesses and could soon issue an indictment. Such a move could inflame tensions between Beijing and Washington and make a trade deal yet harder.
However, futures for the S&P 500 dipped 0.25% during early Asian hours.
The Dow ended Wednesday with gains of 0.59%, while the S&P 500 added 0.22% and the Nasdaq 0.15%. On Wall Street, strong earnings from Bank of America and Goldman Sachs eased worries about the earnings outlook. Bank of America shares jumped 7.2% and Goldman 9.5%.
Also looming in the background were concerns the U.S. government shutdown was starting to take a toll on its economy.White House economic adviser Kevin Hassett said the shutdown would shave 0.13 percent off quarterly economic growth for each week it goes on.
As expected, British Prime Minister Theresa May narrowly won a confidence vote overnight and invited other party leaders for talks to try to break the impasse on a Brexit divorce deal. An outline for Plan 'B' is due by Monday and the market assumes there will have to be an extension of the Article 50 exit date past March 29.
In commodity markets, palladium hit record highs thanks to increasing demand and lower supply of the metal used in auto catalysts.
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