Published: Sun, November 04, 2018
Markets | By Jeffery Armstrong

Asian stocks rally on hope of US-China trade deal

Asian stocks rally on hope of US-China trade deal

Mexico's foreign minister said Monday during a news conference that his country would proceed with the deal, which Trump renamed the United States-Mexico Trade Agreement, even if Canada and the US fail to agree to terms.

U.S. President Donald Trump said on Friday that a lot of progress had been made with China on trade, and he predicted the world's two largest economies would reach a very good deal.

"There is a long way to go" on negotiations, the USA official said, according to the tweet. But Friday's uptick came despite a lack of details on how Trump aims to reach a deal with Xi after months of exchanging economic blows. "OK, there's no mass movement, there's no huge thing, we're not on the cusp of a deal".

"Xi noted in the conversation that China has repeatedly made clear its stance on bilateral ties, and hopes that both countries will promote a healthy, stable development of bilateral ties", Xinhua said of the call.

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"As the president said, we would like to talk to them about it, but they may not be ready". However, he also cautioned that failing to sign a deal could also lead to further sanctions by the US.

For its part, Beijing has imposed tariffs on $110bn worth of USA goods.

The United States has already imposed tariffs on $250 billion worth of Chinese goods, and China has responded with retaliatory duties on $110 billion worth of US goods.

China's foreign ministry says a phone conversation between President Xi Jinping and his American counterpart, Donald Trump, about trade and other issues was "extremely positive". These include outright cybertheft and forcing USA companies to hand over trade secrets as the price of admission to the Chinese market.

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The United States has already imposed tariffs on $250 billion worth of Chinese goods, and China has responded with retaliatory duties on $110 billion worth of US goods.

Later, Bloomberg News, citing unnamed sources, reported that the president has requested key cabinet secretaries put together an outline deal to call a ceasefire in the painful row.

He said further meetings with Xi are being scheduled for the G-20 summit of the world's biggest economies, set for November 30 in Buenos Aires, the first ever such summit in South America.

Both China and the U.S. have been locked in an increasingly bitter trade dispute in the past few months, with both the nations slapping tariffs on each other's imports, leading to the straining of ties between the world's two largest economies. "We talked about many subjects, with a heavy emphasis on Trade". In Beijing that was seen as an insult to Xi, who sent a personal emissary to Washington for the negotiations, and cemented a view that Trump's real goal was to thwart China's rise. An early-December announcement of a new product list could make the effective date - after a 60-day public comment period - coincide with China's Lunar New Year holiday in early February.

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