Asian stocks cheer progress in US-China trade talks, upbeat China data

Asian stocks are flashing green altitude at press time, with Shanghai Composite trading at 9-month highs on trade optimism.

Both the US and China said they made progress in trade talks, which concluded on Friday in Beijing. Washington added that the negotiations were “candid and constructive”, lifting the US stocks higher.

The Dow Jones Industrial Average (DJIA) jumped 211 points or 0.82 percent on Friday and the positive sentiment seems to have hit the Asian shores.

As of writing, the Shanghai Composite index is hovering at 3163, the highest level since May 2018. Meanwhile, Nikkei and Hang Seng are up 2 percent each, while South Korea's Kospi is up 1.2 percent. Australia's S&P/ASX 200 is also trading 0.72 percent higher on the day.

Apart from the US-China trade optimism, investors seem to have taken heart from a surprise uptick in China's factory activity.

The official manufacturing Purchasing Manager's Index (PMI), which surveys stated owned enterprises,  reached 50.5 in March, rising 1.3 percentage points compared to the previous month, according to the National Bureau of Statistics data released Sunday.

Meanwhile, the Caixin PMI, which focuses on the small and medium-sized export-oriented units rose to 50.8 in March from the previous month's print of 49.9, the data released earlier today showed.

The risk-on action seems to have reduced the haven for safe haven treasuries. The 10-year treasury yield is currently trading at 2.44 percent, representing a 2.5 basis point rise on the day.