Asian markets higher as US puts tariffs on China “on hold”

Asian markets were mostly higher on Monday, with positive prospects coming from US-China trade talks boosting risk sentiment among investors.

The Japanese Nikkei 225 closed 0.33 percent higher in the first day of this week, while the broader Topix was limited by declines seen in insurers and steelmakers.

Overnight, Japan’s trade balance came in at 626 billion yen, well above a forecasted 406 billion reading. Exports were up 7.8 percent, falling short from an estimated 8.1 percent growth.

In South Korea, the Kospi benchmark bounced to end 0.20 percent higher.

Mainland Shanghai composite grew 0.66 percent and the Shenzhen composite added 0.79 percent. Hong Kong's Hang Seng was also up, based on utilities and technology components.

Australia’s S&P/ASX 200 was down 0.05 percent, with materials and financials pushing lower.

US Treasury secretary Steven Mnuchin said on Sunday that both nations had made progress following an intense three-day trade negotiations in Washington.

According to Mnuchin, the announced tariffs on $150 billion worth of Chinese goods are off the table as long as trade representatives continue to work on an agreement.

“We’re putting the trade war on hold,” Mnuchin said during a brief interview.

US 10-year Treasury yields held above the psychological 3 percent mark, offering extra support for the greenback. By the time of this writing, the yield stood at 3.076 (+0.30 percent)

The US dollar index, which measures the greenback’s strength against a basket of six major competitors, was up 0.23 percent at 93.76 by the time of this writing.

Ahead today, traders will be paying close attention a series of Fed speakers, including FOMC Bostic (16:15 GMT), Harker (18:05 GMT) and Kashkari (21:30 GMT).

FortFS