Markets extended the previous day's gains in Asia on Tuesday (Jun 11), with investors turning their attention back to the China-US trade row and a planned meeting between the countries' leaders later this month.

Donald Trump's decision to drop threatened tariffs on Mexico after a last-minute <a href="https://www.wionews.com/world/mexico-immigration-deal-significant-win-for-us-pompeo-226128">immigration deal </a>last week sparked relief across trading floors and led to hope that the row with Beijing could also end with some sort of agreement.

The gains, which follow another healthy Wall Street performance, are much needed since the US president shocked markets last month by hiking levies on US $200 billion of Chinese imports, blaming backsliding over their long-running trade talks.

Support is also coming from expectations the Federal Reserve will cut interest rates as soon as next month in response to a string of soft US economic data and concerns about the impact of the <a href="https://www.wionews.com/business-economy/china-exports-grow-despite-us-tariffs-but-import-slump-most-in-nearly-three-years-225842">China stand-off.</a>

"What continues to grease the wheels of US equity markets and the one constant that keeps the S&amp;P (500) ticking is Federal Reserve free and cheap money, it's long been an established pattern," said Stephen Innes at Vanguard Markets.

But OANDA senior market analyst Edward Moya warned that while lower US central bank rates were a major boost, traders were ultimately keen to see the world's top two economies resolve their trade war.

"The recent global stock market rally has stemmed from expectations that the Fed will come to the rescue with a couple of rate cuts this year," he said in a note. "But that will not likely deliver fresh record highs with the US indexes unless we see a scaling back of tariffs between the US and China."

Oil uncertainty

In early trade Hong Kong rose 0.7 per cent, building on Monday's more than two per cent rally, while Shanghai was up 1.5 per cent.

Tokyo ended the morning 0.4 per cent higher, Sydney climbed 1.3 per cent and Singapore put on 0.5 per cent while Seoul added 0.3 per cent. Wellington was nearly one per cent up, with Taipei and Manila both strengthening 0.4 per cent.

Focus is now on the expected face-to-face between Trump and Xi Jinping at the G20 in Osaka at the end of June.

The US president told CNBC on Monday that a meeting had been planned but warned that if Xi did not turn up he would ramp up levies on all Chinese imports.

While expectations are for an agreement to eventually be made - which would be in the interests of both sides - Ray Attrill, head of forex strategy at NAB, said the "meeting is gearing up to be another major 'binary' risk event that should keep markets very edgy in the coming days and weeks".

Oil prices edged up after Monday's drop, which came on the back of uncertainties about an agreement between OPEC and other key producers led by Russia to cap output.

Innes said the market remains burdened by overproduction and waning demand.

"This is a real fear as with China slowing, the EU sickly and the US data starting to wobble, an economic downturn remains a clear and present danger," he said.

He warned prices could "drop to US$40 in a heartbeat" without the OPEC group and Russia agreeing to extend the output cuts.

Markets extended the previous day's gains in Asia on Tuesday (Jun 11), with investors turning their attention back to the China-US trade row and a planned meeting between the countries' leaders later this month.

Markets extended the previous day's gains in Asia on Tuesday (Jun 11), with investors turning their attention back to the China-US trade row and a planned meeting between the countries' leaders later this month. Donald Trump's decision to drop threatened tariffs on Mexico after a last-minute immigration deal last week sparked relief across trading floors and led to hope that the row with Beijing could also end with some sort of agreement. The gains, which follow another healthy Wall Street performance, are much needed since the US president shocked markets last month by hiking levies on US $200 billion of Chinese imports, blaming backsliding over their long-running trade talks. Support is also coming from expectations the Federal Reserve will cut interest rates as soon as next month in response to a string of soft US economic data and concerns about the impact of the China stand-off. "What continues to grease the wheels of US equity markets and the one constant that keeps the S&P (500) ticking is Federal Reserve free and cheap money, it's long been an established pattern," said Stephen Innes at Vanguard Markets. But OANDA senior market analyst Edward Moya warned that while lower US central bank rates were a major boost, traders were ultimately keen to see the world's top two economies resolve their trade war. "The recent global stock market rally has stemmed from expectations that the Fed will come to the rescue with a couple of rate cuts this year," he said in a note. "But that will not likely deliver fresh record highs with the US indexes unless we see a scaling back of tariffs between the US and China." Oil uncertainty In early trade Hong Kong rose 0.7 per cent, building on Monday's more than two per cent rally, while Shanghai was up 1.5 per cent. Tokyo ended the morning 0.4 per cent higher, Sydney climbed 1.3 per cent and Singapore put on 0.5 per cent while Seoul added 0.3 per cent. Wellington was nearly one per cent up, with Taipei and Manila both strengthening 0.4 per cent. Focus is now on the expected face-to-face between Trump and Xi Jinping at the G20 in Osaka at the end of June. The US president told CNBC on Monday that a meeting had been planned but warned that if Xi did not turn up he would ramp up levies on all Chinese imports. While expectations are for an agreement to eventually be made - which would be in the interests of both sides - Ray Attrill, head of forex strategy at NAB, said the "meeting is gearing up to be another major 'binary' risk event that should keep markets very edgy in the coming days and weeks". Oil prices edged up after Monday's drop, which came on the back of uncertainties about an agreement between OPEC and other key producers led by Russia to cap output. Innes said the market remains burdened by overproduction and waning demand. "This is a real fear as with China slowing, the EU sickly and the US data starting to wobble, an economic downturn remains a clear and present danger," he said. He warned prices could "drop to US$40 in a heartbeat" without the OPEC group and Russia agreeing to extend the output cuts.

Asian markets enjoy fresh rally with focus on Trump-Xi meeting

The United States said on Monday it was committed to welcoming <a href="https://www.wionews.com/world/china-warned-students-and-academics-on-the-risk-of-studying-in-the-united-states-223867">Chinese nationals for "legitimate" studies</a> but acknowledged increased visa scrutiny after Beijing warned its students of risks.

"We welcome Chinese students and scholars to the United States to conduct legitimate academic activities," a State Department spokeswoman said.

The spokeswoman said, however, that the United States had identified "an increasing number of instances" in which foreign intelligence co-opts students during their time in the United States.

"At the same time, we're committed to providing the highest quality service to legitimate travellers - who constitute the overwhelming majority of our visa applicants - so they can receive swift, thorough and clear decisions regarding their visa applications," she said.

China earlier on Monday had warned its students and academics of the "risk" of studying in the United States, citing an uptick in visa denials and delays.

The new guidance comes amid a surge in commercial tensions between the world's two largest economies, with the United States cracking down on premier Chinese tech company Huawei, citing security concerns due to its cosy ties with the government.

A decrease in Chinese students could be costly to the United States. China is the biggest source of international students on US campuses, with 360,000 attending last year -- and many pay costly full tuition.

The United States said on Monday it was committed to welcoming Chinese nationals for "legitimate" studies but acknowledged increased visa scrutiny after Beijing warned its students of risks.

The United States said on Monday it was committed to welcoming Chinese nationals for "legitimate" studies but acknowledged increased visa scrutiny after Beijing warned its students of risks. "We welcome Chinese students and scholars to the United States to conduct legitimate academic activities," a State Department spokeswoman said. The spokeswoman said, however, that the United States had identified "an increasing number of instances" in which foreign intelligence co-opts students during their time in the United States. "At the same time, we're committed to providing the highest quality service to legitimate travellers - who constitute the overwhelming majority of our visa applicants - so they can receive swift, thorough and clear decisions regarding their visa applications," she said. China earlier on Monday had warned its students and academics of the "risk" of studying in the United States, citing an uptick in visa denials and delays. The new guidance comes amid a surge in commercial tensions between the world's two largest economies, with the United States cracking down on premier Chinese tech company Huawei, citing security concerns due to its cosy ties with the government. A decrease in Chinese students could be costly to the United States. China is the biggest source of international students on US campuses, with 360,000 attending last year -- and many pay costly full tuition.

Welcome Chinese students to conduct legitimate academic activities: US

As the trade war between the US and China continued, President Trump in an early morning tweet said China will be hurt very badly "if it doesn't make a deal because companies will be forced to leave China for other countries."

"I say openly to President Xi and all of my many friends in China," the President said as the trade talks between the two countries concluded without any results.

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<blockquote class="twitter-tweet">
..There will be nobody left in China to do business with. Very bad for China, very good for USA! But China has taken so advantage of the U.S. for so many years, that they are way ahead (Our Presidents did not do the job). Therefore, China should not retaliate-will only get worse!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1127886309316599808?ref_src=twsrc%5Etfw">May 13, 2019</a></blockquote>
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Even as Trump openly challenged the Chinese leadership, <a href="https://www.wionews.com/world/china-says-it-will-never-surrender-to-foreign-pressure-amid-trade-dispute-218306">China's foreign ministry said</a> on Monday the country won't "surrender" to foreign pressure after Washington renewed its threat to impose tariffs.

The United States escalated a tariff war with China on Friday by hiking levies on $200 billion worth of Chinese goods even as trade talks were underway in Washington. The trade conflict has led to large scale tariffs being imposed by both sides threatening the world economy.&nbsp;

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/us-orders-tariff-hike-on-all-imports-from-china-217680/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

"Too expensive to buy in China. You had a great deal, almost completed, &amp; you backed out!" Trump said, adding, "the unexpectedly good first quarter 3.2% GDP was greatly helped by tariffs from China. Some people just don’t get it!"

"Many tariffed companies will be leaving China for Vietnam and other such countries in Asia. That’s why China wants to make a deal so badly!" he said.

"There will be nobody left in China to do business with. Very bad for China, very good for USA!"&nbsp;

"But China has taken so advantage of the US for so many years, that they are way ahead (Our Presidents did not do the job). Therefore, China should not retaliate - will only get worse!" Trump said.

Trump in a tweet earlier had said "China loved ripping off America", adding that &nbsp;"China is "dreaming" that "former Vice President Joe Biden or any Democratic candidate will win the 2020 presidential election."

As the trade war between the US and China continued, President Trump in an early morning tweet said China will be hurt very badly "if it doesn't make a deal because companies will be forced to leave China for other countries.

As the trade war between the US and China continued, President Trump in an early morning tweet said China will be hurt very badly "if it doesn't make a deal because companies will be forced to leave China for other countries." "I say openly to President Xi and all of my many friends in China," the President said as the trade talks between the two countries concluded without any results. ..There will be nobody left in China to do business with. Very bad for China, very good for USA! But China has taken so advantage of the U.S. for so many years, that they are way ahead (Our Presidents did not do the job). Therefore, China should not retaliate-will only get worse! — Donald J. Trump (@realDonaldTrump) May 13, 2019 × Even as Trump openly challenged the Chinese leadership, China's foreign ministry said on Monday the country won't "surrender" to foreign pressure after Washington renewed its threat to impose tariffs. The United States escalated a tariff war with China on Friday by hiking levies on $200 billion worth of Chinese goods even as trade talks were underway in Washington. The trade conflict has led to large scale tariffs being imposed by both sides threatening the world economy. "Too expensive to buy in China. You had a great deal, almost completed, & you backed out!" Trump said, adding, "the unexpectedly good first quarter 3.2% GDP was greatly helped by tariffs from China. Some people just don’t get it!" "Many tariffed companies will be leaving China for Vietnam and other such countries in Asia. That’s why China wants to make a deal so badly!" he said. "There will be nobody left in China to do business with. Very bad for China, very good for USA!" "But China has taken so advantage of the US for so many years, that they are way ahead (Our Presidents did not do the job). Therefore, China should not retaliate - will only get worse!" Trump said. Trump in a tweet earlier had said "China loved ripping off America", adding that "China is "dreaming" that "former Vice President Joe Biden or any Democratic candidate will win the 2020 presidential election."

China should not retaliate on tariffs, it will only get worse, says Trump

Traders of India's diamond hub Surat city, in Prime Minister, Narendra Modi's home state Gujarat, are claiming a steep fall in the export of the polished precious stones owing to the ongoing US-China trade war.

India's diamond traders claim drop in exports due to US-China trade war