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Feb. 12, 2017, 9:55 p.m. EST

Asian markets gain after reassuring words from Trump

Nikkei rises despite weak GDP report

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By Willa Plank


Bloomberg News
President Donald Trump shakes hands with Shinzo Abe, Japan's prime minister, at the White House on Friday.

Global stocks kicked off the week on a positive note, with markets in Asia extending gains, as recent actions by President Donald Trump helped soothe investor worries about ties between the U.S. and its key Asian trading partners.

Japan’s Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK -0.78%   was up 0.6% early Monday, Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -1.54%   added 0.6%, Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +0.59%   rose 0.3% and the Shanghai Composite Index /zigman2/quotes/210598127/delayed CN:SHCOMP +1.74%   gained 0.4%.

At a joint appearance over the weekend with Japanese Prime Minister Shinzo Abe, Trump said that the “United States of America stands behind Japan, its great ally, 100%,” following the launch of a ballistic missile by North Korea that landed in the Sea of Japan.

Those comments by Trump came not long after he spoke with Chinese President Xi Jinping and affirmed he would abide by the “One China” policy that has underpinned Sino-American relations for many years.

“It looks all handshakes and hugs between Trump and Abe…they were showing a very united front,” said Chris Weston, chief market strategist at IG.

Japanese stocks were higher at Monday’s opening after the yen retreated further against the U.S. dollar, with auto stocks leading.

Among key auto-export stocks, Honda Motor /zigman2/quotes/200490352/delayed JP:7267 -1.50%   was up 1.0% and Subaru maker Fuji Heavy /zigman2/quotes/203522406/delayed JP:7270 -1.55%   added 0.9%. Energy stocks were also higher as oil prices advanced during U.S. trading on Friday; oil explorer Inpex /zigman2/quotes/206689846/delayed JP:1605 -3.29%   climbed 5.8%.

The Nikkei’s gains come despite a slight slowdown in economic growth for Japan in the fourth quarter. Japan’s real gross domestic product grew 1.0% on an annualized basis in the three months through December, according to data released Monday. The expansion was smaller than a forecast of 1.1% growth by economists surveyed by The Wall Street Journal.

Still, the Japan GDP data isn’t worrying the market, said Andrew Sullivan, managing director of sales trading at Haitong International Securities. Abe’s meeting with Trump seemed to have been positive and investors are beginning to think Trump has become more aware of the complexities of being president, but market participants are still waiting to see results.

“Show me the money,” Sullivan said.

/zigman2/quotes/210597971/delayed
JP : Nikkei
22,438.65
-176.04 -0.78%
Volume: 0.00
July 8, 2020 3:15p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
5,920.30
-92.60 -1.54%
Volume: 777,765
July 8, 2020 5:14p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
26,129.18
+153.52 +0.59%
Volume: 2.59M
July 8, 2020 4:08p
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/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,403.44
+58.10 +1.74%
Volume: 58.71B
July 8, 2020 3:01p
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/zigman2/quotes/200490352/delayed
JP : Japan: Tokyo
¥ 2,726.00
-41.50 -1.50%
Volume: 3.94M
July 8, 2020 3:00p
P/E Ratio
10.53
Dividend Yield
0.00%
Market Cap
¥4857.82 billion
Rev. per Employee
¥73.06M
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/zigman2/quotes/203522406/delayed
JP : Japan: Tokyo
¥ 2,222.00
-35.00 -1.55%
Volume: 1.95M
July 8, 2020 3:00p
P/E Ratio
11.17
Dividend Yield
4.50%
Market Cap
¥1762.91 billion
Rev. per Employee
¥95.93M
loading...
/zigman2/quotes/206689846/delayed
JP : Japan: Tokyo
¥ 634.00
-21.60 -3.29%
Volume: 12.31M
July 8, 2020 3:00p
P/E Ratio
7.98
Dividend Yield
3.79%
Market Cap
¥972.35 billion
Rev. per Employee
¥291.81M
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