Everything hinges on next 24 hours for Asia’s weekly stock rally

Today’s rally across Asian stock markets has put the regional benchmark index in the green for the week. Barely.

The MSCI Asia Pacific Index climbed 0.7% as of 2:45 pm in Hong Kong on Wednesday. Its two-day rally has helped erase the two-day decline earlier this week and the gauge is now up 0.2% for the week. Whether or not it will stay that way depends on no surprises till the close… and what happens in the next 24 hours or so.

So far on Thursday, things have been looking up:

Chinese importers have purchased 1.5 million to 2 million metric tons of American soy, marking the nation’s first significant purchase of US soy since the trade war, according to the US Soybean Export Council.

On the technology front, China is mulling the delay of some targets in its strategy to dominate high-end technologies, which is viewed as a step to ease trade tensions with America.

Chinese stocks jumped as investors bet next week’s economic policy meeting will signal further easing, spurring gains in property developers to infrastructure companies.

The National Development and Reform Commission will focus on supporting bond issuance by Chinese companies with a sound credit record and major contribution to the local economy or industrial upgrade, according to the top economic planner.

But there are still reasons to be cautious. Canada said a second person has been questioned by Chinese authorities and the former has since lost contact with him, further heightening tensions between the two countries. Huawei froze orders from Japan supplier after its chief financial officer was arrested in Canada.

While stock traders have cheered the easing trade conflict this week, Trump administration officials on Wednesday called for more “ fundamental structural changes” from China and hoped Beijing to agree on timelines, deadlines and enforceable actions to balance trade and open their markets to foreign companies. And don’t forget the increase in a key measure of US inflation, reinforcing expectations that the Federal Reserve will raise interest rates next week.

With the Shanghai Composite Index rallying 1.2%, Chinese shares lead the gains in Asia, followed by Hong Kong where the Hang Seng Index is up 1.1%.

In Southeast Asia, Philippines equities advanced for a third day as investors awaited the central bank’s rate decision. Bangko Sentral ng Pilipinas will keep its benchmark rate at 4.75% on Thursday after five successive rate increases, according to a Bloomberg survey.

And here are some other significant moves in the region:

Macau casinos surged as analysts point to a positive growth trend for gross gaming revenue. Hengan International fell again Thursday when it resumed trading after a brief suspension prompted by a critical report from short seller Bonitas Research. Takeda Pharmaceutical rallied, its biggest gain since February 2016. Short interest in the stock climbed to over 28% of its free float as of Tuesday, according to data compiled by IHS Markit.