Asian stock markets jumped in early trading Friday, reflecting investor relief about upcoming trade talks between China and the U.S., as well as the dollar‘s gains against a basket of major currencies including the yen.
President Donald Trump on Thursday said he had a good talk with Chinese President Xi Jinping, and that trade talks were “moving along nicely.” The two will meet formally later this month, with investors hoping a deal will be reached to ease trade tensions.
recovered after yesterday’s losses, and was last up 1%. Earnings season cast a pall on some stocks though. Suzuki Motor Corp.
was down 4% following its earnings report after the closing bell yesterday. Its second-quarter operating profit slid 6.6% amid weaker sales in Europe, China and India — its biggest market. After a down day Thursday, telecoms rallied Friday, with Nippon Telegraph & Telephone
up 5% and NTT DoCoMo
Chinese benchmarks were sharply higher amid hopes of easing the trade conflict, with the Shanghai Composite
up 1% and the smaller-cap Shenzhen Composite
advancing 1.7%. Insurers and brokerage firms led the gains while oil stocks were muted as oil prices slumped.
Hong Kong stocks surged, with the Hang Seng Index
up 2.3%. Sunny Optical
jumped 7% with index heavyweight Tencent
adding 6%. Auto stocks saw renewed buying with Great Wall
and Geely Auto
up 4.7% and 5% respectively. Among casino stocks, Galaxy Entertainment
rose 7% and Wynn Macau
gained 9%. “The attitudes of both Chinese and U.S. leaders have been productive, bringing more positivity to the meeting at the end of the month,” said UOB Kay Hian stock strategist Ivan Ip.
component manufacturers were mostly unaffected by the tech giant’s after-hours slump following record quarterly earnings but a warning of slower holiday sales. Taiwan’s Taiex
rose, as Foxconn
, Taiwan Semiconductor
and Largan Precision
all gained. South Korea’s Kospi
was up more than 2% as Samsung
and SK Hynix
Australia’s ASX 200
was the region’s only loser, as the energy and financial sectors pulled down the index. Oil Search Limited
was off 2% and ANZ Bank
was off 1.3%. New Zealand’s benchmark index
Benchmark indexes in Singapore
were also up.
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