Markets in Asia edged higher following Xi’s remarks

Stock markets in Asia rose on Tuesday as market participants digested a speech from Chinese President Xi Jinping on a plan designed to open the economy.

"We encourage normal technological exchanges and cooperation between Chinese and foreign enterprises and protect the lawful [intellectual property] owned by foreign enterprises in China," Xi said speaking at the Boao Forum for Asia.

"We must refrain from seeking dominance and reject the zero-sum game, we must refrain from 'beggar thy neighbor' and reject power politics or hegemony while the strong bully the weak, [...] This way, we will make economic globalization, more open, inclusive, balanced and beneficial to all," he added.

Markets reacted positively to Xi’s comments, which reinforced the idea that China is willing to resolve commercial differences with the United States in a diplomatic way.

Over the weekend, President Trump tweeted: "President Xi and I will always be friends, no matter what happens with our dispute on trade. China will take down its Trade Barriers because it is the right thing to do. Taxes will become Reciprocal & a deal will be made on Intellectual Property. Great future for both countries!"

Hong Kong's Hang Seng Index added 1.65 percent, while mainland, the Shanghai composite was up 1.67 percent and the Shenzhen composite soared 1.05 percent.

Tokyo’s Nikkei 225 rose 0.64 percent to end at 21816 and Seul’s Kospi benchmark edged up 0.27 percent to close the session at 2450.74 points.

Wall Street top three indexes ended with moderate gains on Monday. The Dow Jones industrial average added 46.34 points to 23,979.10, with Merck and Intel leading gainers.

The S&P 500 was up 0.3 percent to 2,613.16, with technology components rising 0.8 percent. The Nasdaq composite advanced 0.5 percent to 6,950.34.

Economic calendar:

The US producer price index for March is up at 12:30 GMT, with a 0.2% growth seen. In the evening, UK investors will take a look at BRC retail sales monitor for March.

FortFS