Why U.S. Investors Should Cheer Yellen’s Successful Trip

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Asian equities were mixed overnight on light volumes as Japan, South Korea, and Taiwan underperformed.

Hong Kong and China posted small gains, with the former coming off morning highs. There were several interesting developments beyond the positive outcome of Janet Yellen’s China trip, which should lead to a John Kerry visit. Communication is finally occurring, which should stabilize the relationship as the US needs China just as China needs the US. US and global investors in US multinationals such as Apple, Tesla, and ExxonMobil should exhale as a dial-down of tension lowers the potential of curbs on US MNCs operating in China. As the WSJ notes, no Chinese airline has ordered a Boeing plane in years. At the same time, Chinese exports need access to the US market. Codependent, or as Elon Musk called the two countries, are “intertwined like conjoined twins.”