Asian markets higher; Trump says US trade deficit with China is “not sustainable”

Asian markets edged up on Thursday, following a solid lead from Wall Street in the prior session. Market participants focused on the release of Chinese economic data and a speech by President Donald Trump regarding the future of Washington-Beijing relations.

Australia ASX +33.30 +0.55% 6,122.40 CLOSED

Shanghai Comp +2.74 +0.08% 3,418.20 OPEN

Hang Seng Index +184.93 +0.64% 29,092.53 OPEN

Nikkei 225 -45.11 -0.20% 22,868.71 CLOSED

TSEC 50 Index -75.72 -0.70% 10,743.27 CLOSED

China’s October consumer prices increased 1.9 percent year over year, little above an initially estimated build of 1.8 percent. Producer prices were also above expectations, rising 6.9 percent in the twelve months through October against a forecasted 6.6 percent.

In other news, the Reserve Bank of New Zealand decided to keep its benchmark rate unchanged at 1.75 percent, in line with analysts’ expectations.

But attention was mainly directed to President Trump and his so-called Asia tour. The American leader spoke in China’s capital about the evolution of US-China commerce relations and the need for a change regarding the massive trade deficit, which seems to be “not sustainable.”

"We must immediately address the unfair trade practices that drive this deficit along with barriers to market success: We really have to look at access, forced technology transfer, and the theft of intellectual property," said Trump during the conference.

"But, but, I don't blame China, [...] After all, who can blame a country for being able to take advantage of another country for the benefit of its citizens? I give China great credit."

No relevant economic data was released on Wednesday. Today, traders will be monitoring the release of the European Central Bank Economic Bulletin as of 09:00 GMT, as well as EU Economic Forecasts one hour later.

Members of the European regulator Coeure, Constancio, Lautenschlaeger are scheduled to speak at 10:00 GMT, 13:45 GMT and 18:20 GMT respectively.

In the United States, investors will keep an eye on initial jobless claims as of 13:30 GMT.

Fort Financial Services