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Aug. 19, 2019, 4:01 a.m. EDT

Asian markets climb on China stimulus move, trade-talks optimism

Beijing announces plan to reform interest rates over the weekend

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By Associated Press and Marketwatch


Getty Images/iStockphoto
Hong Kong stocks surged Monday.

Asian shares climbed Monday, as investors embraced a move by China that could help lower borrowing rates for companies, and signals that trade talks between Washington and Beijing could be improving.

On Saturday, the People’s Bank of China unveiled a key interest rate reform aimed at lowering real interest rates for companies as the country faces a slowing economy. Last week’s data showed China’s economy slowed more sharply than expected in the third quarter.

While Trump on Sunday suggested no quick end to the trade war with China, some investors were encouraged after Trump said he spoke with Apple Chief Executive Tim Cook, who warned the president that tariffs could hurt his tech company by giving rivals like South Korea’s Samsung Electronics /zigman2/quotes/209800866/delayed KR:005930 +1.33%  an edge. Trump said Cook made a “very compelling argument, so I’m thinking about it.”

Japan’s benchmark Nikkei 225 /zigman2/quotes/210597971/delayed JP:NIK -0.0099%  closed up 0.7%. Hong Kong’s Hang Seng /zigman2/quotes/210598030/delayed HK:HSI -1.05%  gained 2.3% after a massive but peaceful pro-democracy march, while the Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP +0.05%  added 3%. South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +0.22%   was 0.7% higher, and benchmark indexes in Taiwan /zigman2/quotes/210597977/delayed TW:Y9999 +0.02%  , Singapore /zigman2/quotes/210597985/delayed SG:STI -0.09%   and Indonesia /zigman2/quotes/210597981/delayed ID:JAKIDX +0.59%   all rose. Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.58%   closed up 0.9%.

Among individual stocks, convenience-store chain FamilyMart   surged in Tokyo trading. SoftBank /zigman2/quotes/207303954/delayed JP:9984 -2.56%  and Mitsubishi UFJ /zigman2/quotes/207520099/delayed JP:8306 -0.14%   also rose. In Hong Kong, Sunny Optical /zigman2/quotes/206687505/delayed HK:2382 0.00%   gained, along with property developer Country Garden /zigman2/quotes/201681083/delayed HK:2007 +9.05%  and casino operator Galaxy Entertainment /zigman2/quotes/202884203/delayed HK:27 -0.74%  . LG Electronics /zigman2/quotes/209966407/delayed KR:066570 +0.99%  advanced in South Korea, while Taiwan Semiconductor /zigman2/quotes/207385621/delayed TW:2330 +0.38%   rose in Taiwan. In Australia, Beach Energy /zigman2/quotes/200513631/delayed AU:BPT -3.34%   surged, while Commonwealth Bank /zigman2/quotes/200638713/delayed AU:CBA +1.00%   and ANZ Banking /zigman2/quotes/205482049/delayed AU:ANZ -0.83%   rose as well.

On Friday, the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.24%   rose 41.08 points, or 1.4%, to 2,888.68. The Dow /zigman2/quotes/210598065/realtime DJIA -0.17%  , which had an 800-point drop earlier in the week, added 306.62 points, or 1.2%, to 25,886.01. The Nasdaq /zigman2/quotes/210598365/realtime COMP +0.62%   climbed 129.38 points, or 1.7%, to 7,895.99. Each index still finished with a third-straight weekly decline.

Wall Street stocks and other investments had heaved and dropped all week, hitting a crescendo on Wednesday when a fairly reliable warning signal of recession flipped on in the U.S. Treasury market.

Investors are hoping that the Federal Reserve will continue to cut interest rates to shore up economic growth. The central bank lowered interest rates by a quarter-point at its last meeting. It was the first time it lowered rates in a decade.

“With global economic engines still clattering and in desperate need of some high-grade Central Bank stimulus, investors are still pinning their hopes on central bank policy,” said Stephen Innes, managing partner at Valour Markets in Singapore.

Investors are also worried about Trump’s shocking announcement on Aug. 1 that he planned to extend tariffs across virtually all Chinese imports, many of them consumer products that were exempt from early rounds of tariffs. The tariffs have been delayed, but ultimately will raise costs for U.S. companies bringing goods in from China. 

Benchmark crude oil   rose 83 cents to $55.70 a barrel. It rose 40 cents to settle at $54.87 a barrel Friday. Brent crude oil  , the international standard, rose 96 cents to $59.59 a barrel.

The dollar /zigman2/quotes/210561789/realtime/sampled USDJPY +0.9068%   rose to 106.37 Japanese yen from 106.24 yen Friday.

/zigman2/quotes/209800866/delayed
KR : S. Korea: KRX
61,000.00
+800.00 +1.33%
Volume: 15.04M
Aug. 16, 2022 3:30p
P/E Ratio
9.57
Dividend Yield
2.37%
Market Cap
₩404721.98 billion
Rev. per Employee
₩2.69B
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/zigman2/quotes/210597971/delayed
JP : Nikkei
28,868.91
-2.87 -0.0099%
Volume: 0.00
Aug. 16, 2022 3:15p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
19,830.52
-210.34 -1.05%
Volume: 1.95M
Aug. 16, 2022 4:09p
loading...
/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,277.88
+1.80 +0.05%
Volume: 30.36B
Aug. 16, 2022 3:00p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,533.52
+5.58 +0.22%
Volume: 398,335
Aug. 16, 2022 3:32p
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/zigman2/quotes/210597977/delayed
TW : Taiwan Stock Exchange
15,420.57
+3.22 +0.02%
Volume: 0.00
Aug. 16, 2022 1:33p
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/zigman2/quotes/210597985/delayed
SG : Singapore: SGX
3,253.79
-3.03 -0.09%
Volume: 0.00
Aug. 16, 2022 5:20p
loading...
/zigman2/quotes/210597981/delayed
ID : Indonesia Stock Exchange
7,135.27
+42.00 +0.59%
Volume: 0.00
Aug. 16, 2022 2:49p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
7,105.40
+41.10 +0.58%
Volume: 663,100
Aug. 16, 2022 5:06p
loading...
/zigman2/quotes/207303954/delayed
JP : Japan: Tokyo
¥ 5,749.00
-151.00 -2.56%
Volume: 21.73M
Aug. 16, 2022 3:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
¥9238.49 billion
Rev. per Employee
¥133.99M
loading...
/zigman2/quotes/207520099/delayed
JP : Japan: Tokyo
¥ 725.30
-1.00 -0.14%
Volume: 25.39M
Aug. 16, 2022 3:00p
P/E Ratio
10.80
Dividend Yield
4.41%
Market Cap
¥9108.87 billion
Rev. per Employee
¥45.07M
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/zigman2/quotes/206687505/delayed
HK : Hong Kong
$ 120.50
0.00 0.00%
Volume: 6.38M
Aug. 16, 2022 4:08p
P/E Ratio
29.82
Dividend Yield
0.93%
Market Cap
$134.83 billion
Rev. per Employee
$1.83M
loading...
/zigman2/quotes/201681083/delayed
HK : Hong Kong
$ 2.53
+0.21 +9.05%
Volume: 318.25M
Aug. 16, 2022 4:08p
P/E Ratio
1.74
Dividend Yield
14.68%
Market Cap
$58.61 billion
Rev. per Employee
$6.26M
loading...
/zigman2/quotes/202884203/delayed
HK : Hong Kong
$ 47.00
-0.35 -0.74%
Volume: 4.78M
Aug. 16, 2022 4:08p
P/E Ratio
154.61
Dividend Yield
0.00%
Market Cap
$207.79 billion
Rev. per Employee
$731,795
loading...
/zigman2/quotes/209966407/delayed
KR : S. Korea: KRX
102,000
+1,000 +0.99%
Volume: 872,610
Aug. 16, 2022 3:30p
P/E Ratio
14.58
Dividend Yield
0.83%
Market Cap
₩17291.51 billion
Rev. per Employee
₩2.20B
loading...
/zigman2/quotes/207385621/delayed
TW : Taiwan
NT$ 525.00
+2.00 +0.38%
Volume: 21.14M
Aug. 16, 2022 1:30p
P/E Ratio
17.86
Dividend Yield
2.10%
Market Cap
NT$13406.01 billion
Rev. per Employee
NT$28.83M
loading...
/zigman2/quotes/200513631/delayed
AU : Australia: Sydney
$ 1.59
-0.06 -3.34%
Volume: 22.87M
Aug. 16, 2022 4:10p
P/E Ratio
7.25
Dividend Yield
1.26%
Market Cap
$4.21 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/200638713/delayed
AU : Australia: Sydney
$ 101.46
+1.00 +1.00%
Volume: 1.99M
Aug. 16, 2022 4:10p
P/E Ratio
17.10
Dividend Yield
3.79%
Market Cap
$170.57 billion
Rev. per Employee
$592,974
loading...
/zigman2/quotes/205482049/delayed
AU : Australia: Sydney
$ 23.83
-0.20 -0.83%
Volume: 6.57M
Aug. 16, 2022 4:10p
P/E Ratio
10.70
Dividend Yield
6.04%
Market Cap
$69.38 billion
Rev. per Employee
$612,715
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,286.95
-10.19 -0.24%
Volume: 2.22B
Aug. 16, 2022 9:30a
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
33,856.14
-56.30 -0.17%
Volume: 320.97M
Aug. 16, 2022 9:30a
loading...
/zigman2/quotes/210598365/realtime
US : Nasdaq
13,128.05
+80.87 +0.62%
Volume: 85.62M
Aug. 16, 2022 9:30a
loading...
/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
134.5280
+1.2090 +0.9068%
Volume: 0.0000
Aug. 16, 2022 9:29a
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