Asia markets surge on receding trade war fears, Kim visit reports

In this March 26, 2018, photo, a man uses smartphone in front of an electronic stock indicator of a securities firm in Tokyo. Asian shares are higher Tuesday, March 27, 2018, as news that the U.S. and China are open to negotiating to avert a trade war put investors in a buying mood. (AP)

HONG KONG: A wave of optimism flowed across Asian markets on Tuesday, tracking a surge on Wall Street, as fears of a US-China trade war receded.
Speculation that Kim Jong Un was on a surprise secret visit to Beijing also lifted spirits - and the South Korean won - as the North Korean leader prepares for possible nuclear talks with Donald Trump.
The gains on all markets chipped away at the sharp losses suffered last week in response to the White House's decision to hit China with billions of dollars in tariffs.
That came weeks after Washington announced levies on steel and aluminium imports - which have since been postponed for some countries - and sparked talk of a trade war that could batter the global outlook.
However, nerves have been soothed this week as it emerged that high-level talks had been taking place between the world's top two economies to find an agreement.
"Our base case is that there won't be an all-out trade war," Craig Macdonald, at Aberdeen Standard Investments, told Bloomberg News. "It's a way of applying pressure to get some wins by Trump."
However, he said there would likely still be some volatility down the line, adding: "Our sense is that they will get some wins rather than all-out war, but it's not something you can just dismiss. The tail risk is higher."
US markets surged, with the Dow and S&P 500 almost three percent higher and the Nasdaq piling on 3.3 percent - its biggest one-day rise since August 2015.
Those strong performances continued in Asia, with Tokyo closing 2.65 percent higher thanks to a drop in the yen against the dollar, as traders shift out of assets considered safe in times of uncertainty and turmoil.