Asian markets mixed after U.S. elevates China from currency manipulator

Asian markets were mixed in early trading Tuesday, after the U.S. said China is no longer a currency manipulator ahead of the signing of a “phase one” trade agreement this week.

The U.S. Treasury Department stepped back from the decision it made last year, saying in a statement that it “has determined that China should no longer be designated as a currency manipulator at this time.”

The U.S. and China are expected to sign a “phase one” trade deal Wednesday in Washington, which the Treasury Department said will include enforceable commitments by China to refrain from currency devaluation and not target its exchange rate for competitive purposes.

“Investors’ unquenchable appetite for stocks is in hyperdrive, triggered by a further thawing in U.S.-China trade tension,” Stephen Innes, chief Asia market strategist for AxiTrader, wrote in a note.

Japan’s Nikkei

NIK, +0.73%

gained 0.7% as traders returned from a holiday Monday. Hong Kong’s Hang Seng Index

HSI, -0.31%

gave up early gains and was last down about 0.2%, while the Shanghai Composite

SHCOMP, -0.19%

was about flat and the Shenzhen Composite

399106, +0.01%

dipped slightly after data showed China’s exports rose 5% in 2019 on yuan terms, the slowest growth in three years. South Korea’s Kospi

180721, +0.37%

rose 0.4%, while benchmark indexes in Taiwan

Y9999, +0.55%