Asian shares up as United States and China trade tensions ease

Vastavam web: Asian shares held near one-month highs on Monday on signs the United States and China were toning down their trade war rhetoric, while the dollar dipped again as investors wagered on a slower pace of U.S. interest rate hikes.MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.07 percent, on track for a third straight day of gains and within striking distance of one-month high.Investor sentiment was bolstered after U.S. President Donald Trump pledged to help Chinese telecom company ZTE Corp to “get back into business, fast”, news that JPMorgan analysts said was “a significant positive.”

ZTE suspended its main operations earlier this month following a U.S. ban forbidding American companies from supplying to it after the Chinese firm was found to have violated U.S. export restrictions by illegally shipping U.S. goods to Iran.Separately, U.S. officials are preparing for talks in Washington with China’s top trade official Liu He to resolve an escalating trade dispute.

“The fact Trump is now…working to find a resolution for ZTE marks the latest sign of thawing in Beijing-Washington relations,” JPMorgan said in a note.“This suggests that Trump might see the chance for real progress on trade talks, and is softening the U.S. position on an issue important to China,” it added.North Korean leader Kim Jong Un has scheduled the dismantlement of the country’s nuclear bomb test site for next week, ahead of his June 12 meeting with Trump in Singapore.

The United States has said it will lift sanctions on Pyongyang if North Korea agrees to completely dismantle its nuclear weapons program.Strong corporate earnings in the current reporting season along with expectations the U.S. Federal Reserve will hike rates at a slower pace have also bolstered market sentiment in recent sessions.In Asia, investors will also be eyeing Malaysia’s financial markets, which open after a two-day holiday following the stunning victory of Mahathir Mohamad in the country’s general elections last week.