By Associated Press and Marketwatch
Asian shares traded mostly higher Friday on investor optimism about a possible trade deal between the U.S. and Mexico before tariffs take effect.
Japan’s Nikkei 225 /zigman2/quotes/210597971/delayed JP:NIK +0.56% gained nearly 0.5%, while Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.65% rose 0.9%. South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +0.02% was up 0.1% and Singapore’s Straits Times Index /zigman2/quotes/210597985/delayed SG:STI -0.36% advanced 0.6%. Markets in Hong Kong, mainland China and Taiwan were closed for a holiday.
Among individual stocks, Yahoo Japan /zigman2/quotes/207641152/delayed JP:4689 +0.30% rose in Tokyo trading, along with Japan Steel /zigman2/quotes/207991538/delayed JP:5631 +1.03% and Nintendo /zigman2/quotes/208063194/delayed JP:7974 -1.05% . LG Electronics /zigman2/quotes/209966407/delayed KR:066570 +0.29% and SK Hynix /zigman2/quotes/206420319/delayed KR:000660 -0.99% gained in South Korea. BHP /zigman2/quotes/201448516/delayed AU:BHP -0.14% and Beach Energy /zigman2/quotes/200513631/delayed AU:BPT -1.49% advanced in Australia.
A modest Wall Street rally gained strength in the final hour of trading Thursday after Bloomberg reported that the U.S. was considering delaying a 5% tariff on Mexican goods, set to go into effect on Monday. The report came as the two countries held a second day of trade talks.
President Donald Trump said he’ll make a decision about ramping up tariffs on China after he speaks with Chinese President Xi Jinping this month during the G-20 meeting in Japan, which brings together leaders of developed and developing countries.
Trump ordered tariffs of up to 25% on hundreds of billions of dollars’ worth of Chinese exports and his administration is preparing to extend them to $300 billion more — almost all items shipped to the U.S. from China. China has reciprocated with tariffs of its own, among other measures.
The trade dispute with Mexico and China threatens to stifle economic growth in the U.S. and globally. Uncertainty surrounding the trade negotiations has sent many traders fleeing to safer investments, like bonds and gold.
Investors are also watching the U.S. jobs data due later in the day for signs of where the economy is going. The data showed far fewer jobs than expected were created in May.