By Kevin Buckland
TOKYO (Reuters) – Japanese stocks jumped on Friday after a US trade deal with the UK promoted hopes of progress in customs talks with other countries.
Bitcoin has skyrocketed at its highest since January, with US crude surges of more than 3% on Thursday, and after President Donald Trump announced an agreement with British Prime Minister Kiel Stage.
At the same time, concerns that a limited trade agreement with London may not provide much blueprint for additional transactions regarding the outcome of the Sino-US trade talks set on Saturday in Switzerland.
Blue chips on the mainland began a 0.2% lower day, while Hangsen in Hong Kong rose 0.2%.
Japan and the broader Topix each rose about 1.2%, with Topix being set to extend its winning streak in its 11th session, the longest running since October 2017.
Taiwan’s equity benchmark rose 1%, while Australia’s stock added 0.4%.
MSCI’s broadest index of Asia-Pacific stocks outside of Japan remained almost flat.
“The deal between the US and the UK was more style than entity,” said Kyle Rodda, senior financial market analyst at Capital.com.
“But it feeds the story of the US banging fast fire trade transactions and aiming to reduce tariffs with margins and other trade barriers,” Rodda said.
“A constructive statement of language and intention will be sufficient to drive higher stocks from behind the US-China trade talks.”
Trump opposed viewing the UK deal as a template for other negotiations.
The “general terms” contract introduces a 10% tariff on goods imported from the UK, but it prohibits the US obligation to UK automobile exports. The UK has agreed to cut tariffs from 5.1% to 1.8% and increase access to US goods.
Last week, Trump said there were “potential” trade deals with India, South Korea and Japan.
Nymex crude rose 0.2% to $60.02 per barrel early on Friday, building a 3.2% surge the previous day. Brent Crude added 0.3% to $63 per barrel, following a 2.8% rally on Thursday.
Safe Haven Gold continued his slide, weakening 0.5% to about 3,288 ounces after dropping 3.6% in the last two sessions.
The US dollar index, which measures currency against six major peers, rose 0.1% to a one-month peak at 100.77.
The euro settled into a month’s trough at $1.12105, and Sterling slipped to a three-week low of 1.32205.
The story continues