Asia report: Most markets higher as trade concerns subside

Most markets in Asia finished higher on Friday, piling on to the gains seen on Thursday and following a solid technology-led session on Wall Street overnight.

In Japan, the Nikkei 225 was up 1.85% at 22,597.35, as the yen strengthened 0.04% against the dollar to last trade at JPY 112.50.

Broad gains in Tokyo were led by the services sector, closely followed by electrical appliance producers and textiles plays.

The blue-chip stocks were also in positive territory, with Uniqlo owner Fast Retailing ahead 6.95% after a solid earnings report, and Fanuc rising 1.94%.

On the mainland, the Shanghai Composite slipped 0.22% to 2,831.55, and the smaller, technology-heavy Shenzhen Composite advanced 0.46% to 1,604.45.

In economic news out of the People’s Republic, exports rose 11.3% year-on-year in dollar-denominated terms in June, slightly ahead of market expectations.

Dollar-denominated imports were up 14.1%, which was a big miss on the 20.8% predicted by those polled by Reuters.

China’s latest trade surplus figures with the US were also released, with the number rising to $28.97 bn in June - the highest on record.

South Korea’s Kospi was 1.13% higher at 2,310.90, while the Hang Seng Index in Hong Kong added 0.16% to 28,525.44.

Tentative positivity was the theme of the day in the region, with US president Donald Trump’s trip to the UK apparently distracting him from making any market-shocking trade statements or tweets overnight.

US Treasury secretary Steven Mnuchin said on Thursday that Washington could restart bilateral trade talks with Beijing, on the condition of “serious efforts” being made on China’s part.

On Friday, Chinese officials said they had not been in contact with their American counterparts about a resumption of trade talks.

“Markets found some relief overnight on a lack of trade escalation and perceptions that China is taking a slightly more conciliatory tone,” noted analysts at ANZ.

Markets had turned jittery earlier in the week on the news that the US was looking to press ahead with more punitive tariffs on $200bn of Chinese exports.

Oil prices were higher, with Brent crude last up 0.12% at $74.54 per barrel, and West Texas Intermediate ahead 0.37% to $70.59.

In Australia, the S&P/ASX 200 was flat, rising just 0.1 points to 6,268.40, while across the Tasman Sea, New Zealand’s S&P/NZX 50 managed gains of 0.4% to break back through the 9,000 mark to 9,024.19.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.27% at AUD 1.3535 and the Kiwi retreating 0.51% to NZD 1.4829.