By Marketwatch and Associated Press
Asian markets gained in early trading Tuesday, ahead of the first round of trade negotiations between the U.S. and China since early May.
Talks are scheduled to begin Tuesday in Shanghai, though expectations are low. “I don’t know if they’re going to make a deal,” President Donald Trump said last week. “Maybe they will, maybe they won’t.”
Investors were also watching two influential central banks. The Bank of Japan announced Tuesday that it will leave its monetary policy unchanged, as expected, and maintained its guidance of extremely low rates at least through spring 2020, while noting it would not hesitate to take easing action if necessary. Traders had been looking for indications of future easing in the wake of the European Central Bank’s signal last week of a potential rate cut to come. Meanwhile, the U.S. Federal Reserve is expected to announce a small rate cut on Wednesday, its first since 2008.
Japan’s Nikkei /zigman2/quotes/210597971/delayed JP:NIK +2.50% rose 0.7% and Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +0.09% gained 0.5%. The Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP -0.35% advanced 0.7% while the smaller-cap Shenzhen Composite /zigman2/quotes/210598015/delayed CN:399106 -0.43% surged 1%. South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +0.68% rose 0.7%. Taiwan’s Taiex /zigman2/quotes/210597977/delayed TW:Y9999 -0.51% slipped, while benchmark indexes in Singapore /zigman2/quotes/210597985/delayed SG:STI +0.97% and Indonesia /zigman2/quotes/210597981/delayed ID:JAKIDX +0.81% gained. Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +1.26% advanced 0.2%.
Among individual stocks, robotics maker Fanuc /zigman2/quotes/202054799/delayed JP:6954 +3.75% rose in Tokyo trading, as did chip maker Tokyo Electron /zigman2/quotes/202883609/delayed JP:8035 +5.60% and Hitachi /zigman2/quotes/203839937/delayed JP:6501 +0.48% . In Hong Kong, Sunny Optical /zigman2/quotes/206687505/delayed HK:2382 -0.25% , Ping An Insurance /zigman2/quotes/210315058/delayed HK:2318 -1.97% and Wharf Real Estate /zigman2/quotes/205885756/delayed HK:1997 +0.14% posted sold gains. Samsung /zigman2/quotes/209800866/delayed KR:005930 +0.74% advanced in South Korea, while LG Electronics /zigman2/quotes/209966407/delayed KR:066570 -0.67% slipped. In Australia, Beach Energy /zigman2/quotes/200513631/delayed AU:BPT +8.16% and BHP /zigman2/quotes/201448516/delayed AU:BHP +3.37% ticked up.