Yuan Rises on Higher Risk Appetite

Hopes of a breakthrough in U.S.-China trade talks put emerging- market stocks on course for their biggest percentage gain in a month on Friday, while South Africa’s rand, the Korean won and the Chinese yuan all gained as the dollar weakened.

Chinese stocks enjoyed their best weekly gain in five weeks after U.S. President Donald Trump on Thursday called the first day of trade talks with China in over two months “very, very good”.

The MSCI index of developing world stocks jumped 1% and the trade-sensitive stocks of South Korea, Hong Kong and India rallied.

China’s yuan strengthened by 0.2%, with investors watching out for a potential currency pact between the two sides, following a Bloomberg report that it could form part of a deal to suspend further tariff hikes.

Via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza