Asian shares up as trade deal fans confidence

Stocks climbed Monday on Wall Street, placing the major indexes on track to follow up a milestone-setting week with more record highs.

The removal of tariffs, in line with expectations for a phase-one trade deal, has helped to rejuvenate market sentiment and investors are taking on risk as the world's two largest economies seek to find a level playing field. The market got a big confidence boost late last week after the United States and China reached a long-awaited "Phase 1" trade deal.

Commitments on intellectual property will all improve China's overall business environment, which is necessary as the country pursues its economic upgrade.

The implementation of the phase-one deal would be of significance for future trade negotiations, the researcher said.

Monday's rally was broad, with roughly 85% of the stocks in the S&P 500 rising.

Technology stocks were also strong.

Plus, China has also pledged to protect USA intellectual property and not force companies to disclose their major secrets.

KEEPING SCORE: The S&P 500 was up 0.7% as of 10 a.m. Eastern time. It's on pace for its fourth straight gain.

The Dow Jones Industrial Average .DJI rose 62.89 points, or 0.22%, to 28,298.78.

Huawei's CFO wins right to access more evidence on her arrest
Meng claims she needs the documents to show there was an abuse of process in her fight against the extradition. She said the two men "are in sound condition", but demurred on questions about their access to lawyers.

CHINA STRENGTH: China's industrial production rose 6.2% from a year earlier, up from the previous month's 4.7%. Meanwhile, retail sales grew by 8.0% in November, up from 7.2% a month ago.

Also supporting prices on Tuesday, U.S. crude stockpiles were expected to have fallen last week, according to seven analysts polled by Reuters.

The deal, according to a press release published by the USTR on december 13, "requires structural reforms and other changes to China's economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange". -China trade deal announced last week.

"This is a first step in trying to integrate two very different systems, to the benefit of both of us", said Robert Lightizer in an interview on CBS's "Face the Nation".

'By outlawing an extension, it leaves very little time in which to agree a comprehensive free trade agreement with the European Union and means the clock is now ticking down to a firm cliff-edge next December.

Mr Trump said his administration would leverage the remaining U.S. tariffs on imported Chinese goods as it seeks to negotiate a phase two trade deal with Beijing.

He said the US$50 billion in additional purchases of USA agricultural products by China is spelled out in writing in the agreement. Benchmark 10-year Treasury notes rose to 1.84 percent compared with its USA close of 1.821 percent on Friday and the two-year yield touched 1.6201 percent compared with a US close of 1.604 percent. Bank of America rose 1.4%, Wells Fargo gained 1.3% and JPMorgan Chase added 1%.

The FTSE 100 .FTSE , which had seen its best day in almost a year on Monday, dropped 0.2% and the UK's domestically focused mid-cap index .FTMC plunged 1.6%, after reports UK PM Boris Johnson would use his control of parliament to ban any extension of the Brexit transition beyond 2020.

  • Delia Davidson