Most Asian markets trade higher; rebound from U.S.-China trade disputes
Asian shares were mostly higher, rebounding from anxiousness over the U.S.-China trade disputes for a second straight day
Asian shares were mostly higher, rebounding from jitters over the U.S.-China trade disputes for a second straight day.
Japan’s Nikkei 225 jumped 1.9 percent to 22,597.35, helped by a weakening in the yen against the U.S. dollar, which helps blue chip manufacturers. South Korea’s Kospi advanced 1.1 percent to 2,310.90 and Hong Kong’s Hang Seng index added 0.2 percent to 28,546.91. But the Shanghai Composite Index fell 0.2 percent to 2,831.15. Australia’s S&P-ASX 200 was flat at 6,268.40. Stocks in Singapore, Taiwan and other Southeast Asian markets were higher.
China’s June trade grew by double digits amid mounting tension with Washington but Beijing warned its exporters face rising instabilities and uncertainties. Exports rose 11.3 percent over a year earlier to $216.7 billion, down from May’s 12.6 percent growth, customs data showed Friday. Imports expanded by 14.1 percent to $175.1 billion, down from the previous month’s 26 percent.
China has not yet detailed the “firm and forceful measures” it intends to take in response to the fresh potential tariff hikes by the U.S. on $200 billion of goods even as Sino-U.S. talks over the trade dispute is yet to resume.
OANDA’s head of trading in Asia Pacific region, Stephen Innes said that despite the recent escalation in trade battles, the sky hasn’t fallen just yet as optimism crept back into the market. The broader market continues to remain in wait and see mode for further details on how China might retaliate on trade.
U.S stocks finished higher on Thursday led by tech companies. The S&P 500 index rose 0.9 percent to 2,798.29. The Dow Jones Industrial Average gained 0.9 percent to 24,924.89. The Nasdaq jumped 1.4 percent to 7,823.92, closing at an all-time high. The Russell 2000 index of smaller-company stocks added 0.4 percent to 1,690.28.
Benchmark U.S. crude lost 14 cents to $70.19 per barrel in electronic trading on the New York Mercantile Exchange. The contract dipped 0.1 percent to settle at $70.33 a barrel on Thursday. Brent crude, used to price international oils, fell 45 cents to $74.00 per barrel in London. It finished 1.4 percent higher at $74.45 per barrel on Thursday.
In currencies, the dollar rose to 112.67 yen from 112.52 yen. The euro fell to $1.1634 from $1.1672.