Investing.com - Asian shares moved higher in afternoon trade on Thursday, recouping losses from late in the morning after reports that the U.S. and China have begun to outline a deal to end their trade dispute.
Citing sources familiar with the negotiations, Reuters reported that “the broad outline of what could make up a deal is beginning to emerge from the talks.” However, sources said China has not yet met the demands requested by U.S. President Donald Trump’s administration on issues related to structural changes to China’s economy.
They also added that officials from both sides are drawing up six memorandums of understanding on structural issues that include forced technology transfers and non-tariff barriers to trade.
Despite the positive development, one of the sources warned that the talks could still end in failure.
The U.S. and China are hoping to reach an agreement by a March 1 deadline. Trump has said he would increase the tariffs on $200 billion worth of Chinese goods to 25% from 10% if the deadline passes without a deal.
Asian stocks advanced on the news. China’s Shanghai Composite and the Shenzhen Component gained 0.9% and 1.7% by 12:30 AM ET (05:30 GMT). Hong Kong’s Hang Seng Index rose 0.8%.
Computer maker Lenovo Group (HK:0992) surged more than 10% after the company announced a return to profit in the third quarter, surpassing market expectations. It was the company’s best one-day gain in almost 10 years.
Japan’s Nikkei 225 was up 0.4%. Official data showed the country’s Flash Markit/Nikkei Japan Manufacturing Purchasing Managers Index (PMI) contracted for the first time since August 2016. However, the data was largely overshadowed by the trade news and did not have any negative impact on local stocks.
Elsewhere, South Korea’s KOSPI edged up 0.1%. Samsung Electronics Co Ltd (KS:005930) made headlines after the company unveiled its new series of Galaxy smartphones that includes the first consumer-ready foldable mobile phone “Galaxy Fold.”
Down under, Australia’s ASX 200 gained 0.7%. The Australian Bureau of Statistics reported on Thursday that a total of 39,100 net new jobs were created in January, beating the market forecasts for a 15,200.
Minutes from the U.S. Federal Reserve’s January meeting received some focus earlier in the day after the Fed suggested the central bank would continue to hold off on rate hikes amid concerns over international trade and slowing domestic growth.
On the balance sheet, the minutes showed that "almost all participants thought that it would be desirable to announce before too long a plan to stop reducing the Federal Reserve’s asset holdings later this year."