Dow Jones rises as United States and China continue trade talks

Chinese Vice Premier Liu He will visit the United States on January 30 and 31 for the latest round of talks aimed at resolving the trade dispute between the world's two largest economies. Its trade surplus is a product of the country's predatory mercantilism.

The dollar rose by 0.25% against the Euro and was trading at 1.13. On Wall Street, the future for the Dow Jones Industrial Average rose 0.7 percent and that for the Standard & Poor's 500 index was up 0.5 percent.

Emerging market stocks touched a fresh 1-1/2-month high on Friday as hopes of a resolution to the U.S-China trade dispute lifted investor sentiment, while developing currencies were subdued as the US dollar clung onto recent gains.

US stock markets will be closed on Monday for the Martin Luther King Jr. holiday.

MSCI's broadest index of Asia-Pacific shares outside Japan, which has climbed 1.3 percent this week, gained 0.7 percent to $498.18 on Friday.

While the equity rally lifted all major sectors, trade-sensitive industrials .SPLRCI posted among the biggest S&P 500 sector gains, up 1.9 percent on the day. The Nasdaq composite gained 0.7 per cent to 7,084.46.

The unprecedented willingness to do this provides U.S. Trade Representative Robert LighthizerRobert (Bob) Emmet LighthizerMcConnell urges GOP senators to call Trump about tariffs Companies brace for trade war MORE a huge, game-changing advantage over his predecessors.

After years of tough talk regarding China, Mr Trump in recent months has warmed to the idea of striking a deal with Beijing.

China has repeatedly played down complaints about intellectual property abuses, and has rejected accusations that foreign companies face forced technology transfers.

Even with the uncertainty of improvements, investors and traders have largely taken it as good news. Washington also is pressing China to roll back plans for state-led industry development that its trading partners say violate its market-opening obligations.

Benchmark 10-year notes last fell 12/32 in price to yield 2.7878 percent, compared with 2.747 percent late on Thursday.

Mid-level USA and Chinese officials met in Beijing last week to discuss China's offers to address US complaints about intellectual property theft and increase purchases of US goods and services.

Brent crude LCOc1 gained $1.52 to settle at $62.70 a barrel, or 2.48 percent higher.

Elsewhere in commodities, palladium was 1.2 percent higher at $1,412.50 an ounce after rising to an all-time high of $1,434.50 overnight.

The dollar rose to 109.79 yen from 109.23 yen.

One disappointment was Netflix Inc, which fell 1.61 percent as investors looked past its record subscriber numbers and instead focused on its lower-than-expected revenue forecast for the first quarter.

The pound slipped against the euro, partially trimming overnight gains, as traders wagered on a second referendum vote on Britain's European Union membership.

  • Eleanor Harrison