Japan’s Nikkei 225 surged during Tuesday’s Asian trading session, a first step in rebounding from three-week lows hit in recent session. The benchmark index was up 2.65 percent as of 1:45 p.m. HK/SIN, buoyed primarily by support from machinery makers and automobile producers. On Friday the index saw its biggest one-day drop in 2019.
Most other Asian indexes also headed higher. China’s benchmark indexes, the Shanghai Composite and the Shenzhen Composite, were up 0.51 percent and 0.77 percent respectively. South Korea’s Kopsi was up 0.57 percent and Australia’s ASX 200 was 0.30 percent higher.
On the currency markets, lingering concerns about the state of trade affairs between the United States and China kept the dollar near its 2019 highs. The dollar index was unchanged at 97.04 .DXY in the early afternoon, but the greenback was up 0.19 percent against the yen, breaching the 110 handle to trade at 110.57. The dollar was unchanged against the euro, but it eased against the British pound, to trade at $1.2862.
Traders are eagerly awaiting to hear about the results of trade talks between high-level American and Chinese trade officials who are meeting this week to hammer out the trade disputes between the countries before the March 1 deadline after which U.S. President Trump has said that he will implement tariffs on an additional $200 billion of Chinese goods. The dollar’s rise can be attributed in good measure to the trade dispute as traders remain committed to the safe-haven currency amid the trade uncertainty. Concerns about a global economic slowdown have also kept the dollar popular. The euro, in contrast, has weakened for six consecutive trading sessions, and has broken through the key $1.13 level, which may indicate that a further selloff is yet to come.