Asian markets rose in early trading Friday on news that Chinese officials have more interest in renewed trade negotiations with the U.S. than retaliation for new tariffs.
China’s Commerce Ministry was quoted Thursday as saying China would not immediately respond to the Trump administration’s latest tariff hikes — some of which are scheduled to take effect Sept. 1. The spokesman added that the two sides had been discussing details of new face-to-face trade talks scheduled for next month.
That boosted stocks on Wall Street on Thursday, with the major indexes rising more than 1.2% each.
Japan’s Nikkei
NIK, +1.18%
gained 1.2% and Hong Kong’s Hang Seng Index
HSI, +0.69%
rose 0.5%. The Shanghai Composite
SHCOMP, +0.23%
edged up 0.2% while the Shenzhen Composite
399106, +0.16%
advanced 0.1%. South Korea’s Kospi
180721, +1.84%
gained 1.8% as the country’s central bank kept its benchmark interest rate unchanged, as analysts expected, while benchmark indexes in Taiwan
Y9999, +1.20%
, Singapore
STI, +0.80%
, Malaysia
FBMKLCI, +0.62%
and Indonesia
JAKIDX, +0.41%
posted gains. Australia’s S&P/ASX 200
XJO, +1.49%
rose 1.3%.
Among individual stocks, Japan Steel Works
5631, +6.38%
surged in Tokyo trading, while Rakuten
4755, +4.72%
, robotics maker Fanuc
6954, +3.15%
and SoftBank
9984, +2.58%
rose as well. In Hong Kong, oil producer CNOOC
883, +6.67%
and Apple supplier Sunny Optical
2382, +6.22%
gained, along with Tencent
700, +1.81%
and AIA Group
1299, +0.72%
. Samsung
005930, +1.96%
, LG Electronics
066570, +2.84%
and SK Hynix
000660, +5.73%
shot up in South Korea, while Foxconn
2354, +1.29%
and Largan Precision
3008, +1.30%
rose in Taiwan. In Australia, Beach Energy
BPT, +3.86%
, Oil Search
OSH, +2.70%
and mining giant Rio Tinto
RIO, +2.38%
advanced.
Investors were encouraged by a Chinese government statement Thursday that its penalties on U.S. imports are adequate. That suggested Beijing might be pausing in a tit-for-tat cycle of tariff hikes by both sides that has fueled fears the fight will tip the global economy into recession.
The Chinese comment was a “temporary relief for markets,” said Jingyi Pan of IG in a report. However, Pan cautioned it was in line with the view that Beijing “may delay a deal until the 2020 U.S. elections.”
Some analysts say Beijing might be hoping to strike a more favorable deal if Trump is under pressure during his re-election campaign — or might hold out to negotiate with his successor if he loses.
“This could still make for prolonged trade uncertainty,” said Pan.
The S&P 500 index
SPX, +1.27%
rose 1.3% to 2,924.58. The Dow
DJIA, +1.25%
climbed 1.3% to 26,362.25. The Nasdaq
COMP, +1.48%
gained 1.5% to 7,973.39. The S&P 500 is on track for its first weekly gain in five weeks.
Anxiety about the U.S.-Chinese trade fight fueled market volatility this month.
Washington and Beijing are deadlocked in talks over U.S. complaints about China’s trade surplus and industry plans its trading partners say are based on stealing or pressuring companies to hand over technology.
Tit-for-tat tariff hikes by both sides have depressed trade, prompting fears the fight might tip the global economy into recession.
Negotiators are due to meet next month in Washington after the latest round of talks in July in Shanghai produced no sign of progress.
Benchmark U.S. crude
CLV19, -0.21%
fell 20 cents to $56.51 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 93 cents on Thursday to close at $56.71. Brent crude
BRNV19, +0.03%
, used to price international oils, shed 9 cents to $60.40 per barrel in London. It gained 56 cents the previous session to $60.49.
The dollar
USDJPY, -0.12%
declined to 106.44 yen from Thursday’s 106.52 yen.
Source : MTV
