HONG KONG: Asian markets rallied Monday and the dollar extended gains after the US and China said they had agreed to hold off imposing tariffs, averting a potentially damaging trade war. Investors have welcomed news that China and the US have stepped back from the brink of a potentially demaging trade war. "The latest statement on the China-US trade suggests both parties are happy to avoid the dreaded tit-for-tat escalation while working towards a more market-friendly bilateral trade agreement," said Stephen Innes, head of Asia-Pacific trade at OANDA. So given the possible worst-case scenario was avoided the market should view the latest trade discussions as a favourable." Continuing improvement in the US economy has fanned expectations the central bank will lift borrowing costs four times this year.

Source: Bangkok Post May 21, 2018 03:11 UTC