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Asian Shares Advance On Trade Deal Hopes

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Asian stocks rose on Tuesday after U.S. President Donald Trump said that negotiations over an initial trade agreement with China are advancing and that the first phase of the deal will be signed in November. Japanese markets were closed for a holiday.

China's Shanghai Composite Index climbed 14.76 points or 0.5 percent, to 2,954.38, while Hong Kong's Seng Index edged up 60.52 points, or 0.2 percent, to 26,786.20.

Official data showed home prices increased in the majority of Chinese cities in September. On a monthly basis, house prices increased in 53 out of 70 cities.

A day after unexpectedly keeping its new benchmark lending rate unchanged, China's central bank today used open-market operations to inject the largest amount of cash into the banking system since May.

Australian markets eked out modest gains as firmer commodity prices on the back of positive news concerning trade talks helped lift miners.

The benchmark S&P/ASX 200 Index rose 19.70 points, or 0.3 percent, to 6,672.20, while the broader All Ordinaries Index ended up 20.90 points, or 0.3 percent, at 6,778.60.

Mining heavyweights BHP and Rio Tinto rose 1.2 percent and 1.5 percent, respectively on the back of gains in copper and iron ore prices

Banks ANZ, NAB and Westpac rose between 0.3 percent and half a percent. Wealth manager AMP rallied 2.3 percent after raising a record $6.2 billion for its fourth infrastructure debt fund.

On the other hand, hearing aid maker Cochlear slumped 5.5 percent after a downbeat annual general meeting update. Super Retail Group plunged 8.6 percent after promotions to attract consumers hit its margins at the start of fiscal year 2020.

Oil and gas explorer Oil Search dropped 1 percent after cutting its 2019 production outlook. Gold miners Newcrest Mining and Evolution Mining fell around 3 percent after gold prices closed lower overnight.

Seoul stocks posted strong gains as investors cheered positive messages regarding the U.S.-China trade talks. The benchmark Kospi jumped 24.02 points, or 1.2 percent, to 2,088.86.

Tech stocks led the surge, with heavyweight Samsung Electronics rising 1.8 percent and chipmaker SK Hynix adding 2.1 percent.

New Zealand shares fluctuated before finishing modestly higher, with the benchmark S&P/NZX 50 Index ending up 27.64 points, or 0.3 percent, at 11,090.39 in thin trade.

U.S. stocks advanced overnight following upbeat comments from President Donald Trump and Chinese Vice Premier Liu He on the trade front.

Trump told reporters that the trade deal is coming along great and that issues in phase two of the deal would be a lot easier to work out than those in phase one.

Trade Representative Robert Lighthizer said efforts to commit the agreement to paper before the Asia-Pacific Economic Cooperation summit in Chile next month are "on track," though some work remains to be done.

Trump's economic adviser Larry Kudlow indicated that tariffs scheduled for December could be canceled if the talks go well.

The Dow Jones Industrial Average edged up 0.2 percent, while the tech-heavy Nasdaq Composite and the S&P 500 climbed 0.9 percent and 0.7 percent, respectively to reach their best closing levels in a month.

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