In Asian Equity Markets indices were all higher on Friday morning after a report that American officials may be weighing the possibility of easing tariffs on China, in a bid to push forward trade talks. In Japan, the Nikkei 225 rose 1.24 percent in morning trade while the Topix index added 1.1 percent. South Korea’s Kospi was up 0.6 percent. Australia’s benchmark ASX 200 notched up nearly 0.6 percent in morning trade and the heavily-weighted financial sub-index rose 0.65 percent.  The Shanghai composite index rose by more than 1 percent.

In Currency Markets the U.S. dollar was firm against the yen on Friday as growing optimism on progress in Sino-U.S. trade talks supported broader appetite for risk. Against the yen, the dollar edged up to 109.31 yen for its fourth-day of gains against the Japanese currency and just off a two-week high of 109.40 touched overnight. The dollar held firm against the euro, while the pound was steady after rising overnight on hopes of a second referendum on Britain’s membership in the European Union.

In Commodities Markets U.S. oil prices inched higher on Friday after a report from the Organization of the Petroleum Exporting Countries showed its production fell sharply last month, easing fears about prolonged oversupply. U.S. West Texas Intermediate (WTI) crude futures were at $52.40 per barrel, up 32 cents, or 0.6 percent, from their last settlement. WTI futures closed down 0.4 percent on Thursday. International Brent crude oil futures had yet to trade, after closing up 1.1 percent in the previous session.

In US Equity Markets stocks advanced on Thursday as a published report that the United States was considering lifting tariffs on Chinese imports lifted investor sentiment. The S&P 500 financial index rebounded to trade 0.5 percent higher after having fell as much as 1 percent after Morgan Stanley reported a lower-than-expected quarterly profit. The investment bank’s shares were 3.7 percent lower. The S&P 500 gained 0.61 percent, to 2,632.13 and the Nasdaq Composite added 0.56 percent, to 7,074.44.

In Bond Markets U.S. Treasury yields rose on Thursday with the benchmark 10-year yield reaching near three-week highs as better-than-expected economic data and hopes for progress in U.S.-China trade talks diminished safe-haven demand for government debt. The yield on benchmark 10-year Treasury notes hit a near three-week peak of 2.761 percent. It was last 2.749 percent, 2.0 basis points higher than Wednesday’s close. The Treasury Department sold $13 billion in 10-year Treasury Inflation Protected Securities to solid investor demand.