By Dow Jones Newswires
Asian stock markets jumped Friday, reflecting investor relief about upcoming trade talks between China and the U.S., as well as the dollar‘s gains against a basket of major currencies including the yen.
President Donald Trump on Thursday said he had a good talk with Chinese President Xi Jinping, and that trade talks were “moving along nicely.” The two will meet formally later this month, with investors hoping a deal will be reached to ease trade tensions.
Japan’s Nikkei /zigman2/quotes/210597971/delayed JP:NIK -0.04% recovered after Thursday’s losses to close up 2.6%. Earnings season cast a pall on some stocks though. Suzuki Motor Corp. /zigman2/quotes/201794956/delayed JP:7269 +7.60% was down 2.5%, off the worst of the day however, after its second-quarter operating profit slid 6.6% amid weaker sales in Europe, China and India — its biggest market. After a down day Thursday, telecoms rallied Friday, with Nippon Telegraph & Telephone /zigman2/quotes/200718273/delayed JP:9432 -3.35% up 6.6% and NTT DoCoMo /zigman2/quotes/202061250/delayed JP:9437 -4.53% rising 4%.
Chinese benchmarks were sharply higher amid hopes of easing the trade conflict, with the Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP +0.37% up 2.7% and the smaller-cap Shenzhen Composite /zigman2/quotes/210598015/delayed CN:399106 +0.85% advancing 3.4%. Insurers and brokerage firms led the gains while oil stocks were muted as oil prices slumped.
Hong Kong stocks surged, with the Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +1.34% up 4.2%. Sunny Optical /zigman2/quotes/206687505/delayed HK:2382 -0.18% jumped 10% with index heavyweight Tencent /zigman2/quotes/204605823/delayed HK:700 +1.25% adding 9%. Auto stocks saw renewed buying with Great Wall /zigman2/quotes/207702000/delayed HK:2333 +2.03% and Geely Auto /zigman2/quotes/200716015/delayed HK:175 +3.96% up 7% and 11% respectively. Among casino stocks, Galaxy Entertainment /zigman2/quotes/202884203/delayed HK:27 +5.87% rose 9% and Wynn Macau /zigman2/quotes/200973447/delayed HK:1128 +5.59% gained 13%. “The attitudes of both Chinese and U.S. leaders have been productive, bringing more positivity to the meeting at the end of the month,” said UOB Kay Hian stock strategist Ivan Ip.
Apple Inc. /zigman2/quotes/202934861/composite AAPL +2.56% component manufacturers were mostly unaffected by the tech giant’s after-hours slump following record quarterly earnings but a warning of slower holiday sales. Taiwan’s Taiex rose 0.6%, as Foxconn /zigman2/quotes/204111604/delayed TW:2354 +2.62% , Taiwan Semiconductor /zigman2/quotes/207385621/delayed TW:2330 -0.70% and Largan Precision /zigman2/quotes/210444196/delayed TW:3008 -3.80% all gained. South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +1.61% was up 3.5% as Samsung /zigman2/quotes/209800866/delayed KR:005930 +1.03% and SK Hynix /zigman2/quotes/206420319/delayed KR:000660 +0.59% gained.
Benchmark indexes in Singapore /zigman2/quotes/210597985/delayed SG:STI +1.25% , Malaysia /zigman2/quotes/210598052/delayed MY:FBMKLCI +0.57% and Indonesia /zigman2/quotes/210597981/delayed ID:JAKIDX +0.26% were also up.
Australia’s ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +3.46% was initially the one of region’s few losers, as the energy and financial sectors pulled down the index. But it, too, rebounded, to close up 0.1%. Oil Search Limited /zigman2/quotes/204702973/delayed AU:OSH +5.06% was off 1.2% and ANZ Bank /zigman2/quotes/205482049/delayed AU:ANZ +6.57% was off 1.2% as well. New Zealand’s benchmark index /zigman2/quotes/211587880/delayed NZ:NZ50GR -0.68% fell slightly, giving up less than 0.1%.