Asian stocks follow Wall Street higher on trade optimism

12-Oct-2019 Intellasia | AP | 6:02 AM Print This Post

Asian stock markets followed Wall Street higher Friday on optimism about US-Chinese talks on ending a tariff war.

Benchmarks in Tokyo, Hong Kong and Seoul advanced, while Shanghai edged lower following a week of gains.

Traders were encouraged by President Donald Trump’s plan to meet Beijing’s chief trade envoy. Economists say a final settlement to the sprawling dispute is unlikely this year, but some traders are hoping for a cease-fire on further tariff hikes or other issues.

Markets have soared and fallen during 12 previous rounds of talks that produced scant progress toward ending the costly fight over Beijing’s trade surplus and technology ambitions.

“It looks like investors are positioning themselves for a potentially favourable outcome,” said Fawad Razaqzada of in a report. “Are investors setting themselves up for disappointment?”

Tokyo’s Nikkei 225 gained 1 percent to 21,761.25 and Hong Kong’s Hang Seng advanced 1.4 percent to 26,059.67. Seoul’s Kospi rose 0.9 percent to 2,046.94 and Sydney’s S&P-ASX 200 added 0.6 percent to 6,589.00.

The Shanghai Composite Index declined to 2,945.50 as traders took profits.

On Wall Street, tech stocks and banks led a rally Thursday as the trade talks began in Washington.

Trump said he would meet Friday with vice Premier Liu He, head of the Chinese delegation. Trump said China wants to make a deal.

The benchmark Standard & Poor’s 500 Index rose 0.6 percent to 2,938.13. The Dow Jones Industrial Average gained 0.6 percent to 26,496.67. The Nasdaq added 0.6 percent to 7,950.78.

The trade war has dragged on for 15 months, damaging both economies and raising fears of a global recession. Markets have been jittery this week as US-Chinese tensions escalated.

The US blacklisted a group of Chinese technology companies over alleged human rights violations earlier this week.

Beijing lashed out at American companies including Apple Inc. and the National Basketball Association over protests in Hong Kong.

The Trump administration has slapped tariffs on more than $360 billion worth of Chinese imports. Tariffs on $250 billion worth of goods are set to increase to 30 percent from 25 percent on October 15, and new tariffs will kick in on another $160 billion on December 15. That would extend import taxes to virtually everything China ships to the United States.

China has hit back by targeting about $120 billion in US goods.

ENERGY: Benchmark US crude rose 20 cents to $53.75 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 96 cents on Thursday to close at $53.55. Brent crude, used to price international oils, advanced 21 cents to $59.31 per barrel in London. It added 88 cents the previous session to $59.10.

CURRENCY: The dollar declined to 107.96 yen from Thursday’s 107.97 yen. The euro gained to $1.1017 from $1.1006.


Category: FinanceAsia

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