In Asian Equity Markets indices traded higher on Wednesday following developments on the U.S.-China trade front. he Nikkei 225 in Japan traded 0.5% higher in morning trade. Over in South Korea, the Kospi recovered from its earlier decline to advance 0.11%. Shares of Apple supplier LG Display fell more than 1.5% after the firm reported a larger-than-expected second-quarter operating loss. Mainland Chinese shares rose in early trade, with the Shanghai composite adding 0.82%. Hong Kong’s Hang Seng index also rose 0.80%.

In Currency Markets the euro fell to a two-month low on Wednesday, as markets waited to gauge the European Central Bank’s stance on policy amid bubbling expectations that it could eventually lower interest rates and join the global easing trend. The common currency was 0.05% lower at $1.1145 after touching $1.1143, its lowest since May 31. It had already lost more than 0.5% the previous day and shed nearly 0.7% so far this week. The euro’s decline has quickened ahead of the ECB’s policy meeting on Thursday.

In Commodities Markets oil prices edged higher on Wednesday, extending gains as rising tensions with Iran fueled concerns about supply disruptions and as U.S. inventory data showed a much bigger than expected drop in crude stockpiles. Brent crude futures were up 20 cents, or 0.3%, at $64.03 a barrel, after rising nearly 1% on Tuesday. U.S. WTI crude were up 23 cents, or 0.4%, at $57.00 a barrel, having risen about 1% in the previous session. U.S. crude stocks fell more than expected in the week to July 19, declining by 11 million barrels to 449 million, API said on Tuesday.

In US Equity Markets the S&P 500 and Nasdaq approached record highs on Tuesday, lifted by upbeat quarterly reports from Coca-Cola and United Technologies and on optimism the United States would resolve its trade conflict with China. Coca-Cola Co jumped 6.1% to a record high after the drink maker beat quarterly earnings expectations and raised its full-year organic revenue forecast. The S&P 500 gained 0.68% to 3,005.47. The Nasdaq Composite added 0.58% to 8,251.40.

In Bond Markets Japanese government bond futures fell on Wednesday as risk aversion ebbed amid hopes for some progress in U.S.-China trade talks and dampened investor demand for safe-haven assets. September 10-year JGB futures were down 0.03 point at 153.66. The five-year JGB yield was up half a basis point at minus 0.235%. The 10-year yield was unchanged at minus 0.150%.