Futures pointed to a higher start for Asian markets as U.S. President Donald Trump hosts Chinese President Xi Jinping at his Mar-a-Lago resort in Florida and investors noted solid gains for crude oil overnight.
Xi arrived at West Palm Beach earlier in the day for the highly anticipated talks that are expected to focus on trade issues and North Korea. Trump said during a dinner that he believes he will have a “very, very great relationship” with the Chinese president, according to Reuters.
Nikkei futures in Osaka were higher by 0.77 percent at 18,740 points, while futures in Chicago were up 1.06 percent against the benchmark index close of 18,597.06. SPI futures trended higher by 0.13 percent at 5,864 points compared to the ASX 200 which closed at 5,856.285.
The Reserve Bank of India held its benchmark repo rate steady at 6.25 percent but raised the reverse repo rates by 25 basis points to 6 percent, narrowing the gap between the two rates reduces volatility in short-term money market rates. The rupee rose to 65.52 against the dollar, at a 20-month high, compared to 64.88 before the RBI announcement. By 7:15 a.m. HK/SIN, the dollar/rupee traded at 64.602.
In the U.S., equities closed higher, albeit off the highs recorded in the session. The Dow Jones industrial average closed higher by 0.07 points at 2,0662.95 points and the S&P 500 was up 0.19 percent at 2,357.49. An analyst told CNBC that markets were “a bit twitchy” after gains made earlier in the day as plenty could happen within the next 24 hours.
Meanwhile, U.S. weekly jobless claims stood at 234,000 last week, the largest fall in nearly two years.
In currency news, the dollar index traded at 100.67, slightly lower after recording a three-week high at 100.77 earlier in the morning. Against the dollar, the yen traded weaker at 110.85, snapping six consecutive sessions of strengthening. The Aussie fell to $0.7540, slipping further from the $0.76600 handle.
On the energy front, oil prices jumped 1 percent on Thursday U.S. time, as concerns about oversupply eased. Brent crude futures settled up 1 percent at $54.89 a barrel and U.S. crude added 1.1 percent to settle at $51.70.
Also in geopolitical news, Trump said that “something should happen” with Syria’s Bashar al-Assad, after a reported chemical attack in Syria, Reuters reported. Trump suggested he may take a stronger stance against President Assad, an ally of Iran and Russia.