KUALA LUMPUR (Nov 15): The developments at the ongoing G20 summit could be positive for global financial markets, according to a market insights and analysis by Clifford Bennett, Chief Economist at Australia-based ACY Securities.

In a note on Tuesday (Nov 15), Bennett said the meeting between the presidents of the US and China appears to have gone reasonably well, perhaps with some renewed understanding around Taiwan.

He said this would be a welcome development for all of Asia and from a global geo-political risk perspective as well.

“Of course, all is not resolved, but talks with good intentions feel like a step back up, compared with some of the recent tensions between the two super powers,” he said.

Bennett said the Asian region is witnessing a very serious arms race now, and this looks likely to intensify.

He said Japan is building a major military capability and the basing of US nuclear-capable long-term bombers in Darwin has occurred rather suddenly.

The economist said that perhaps, the most important benefit to come out of G20 will not so much be the expected condemnation of the war in Ukraine, but a greater understanding regarding the delicate politico-military situation in Asia.

“While condemning one war, this G20 meeting has the ability to prevent a major conflict in the local region. And this may be its greatest achievement.

“Overall, this G20 should prove to be a positive for global financial market sentiment,” he said.