Asia report: Markets finish higher ahead of US payrolls
Markets in Asia finished higher on Friday, as investors continued to try and make sense of the latest developments on the US-China trade front, while looking ahead to the US payrolls data later in the global day.
In Japan, the Nikkei 225 was up 0.23% at 23,354.40, as the yen strengthened 0.17% against the dollar to last trade at JPY 108.57.
Automation specialist Fanuc finished down 0.14%, while among the other major components, Uniqlo owner Fast Retailing was up 0.33% and SoftBank Group was 0.16% higher.
The broader Topix index added 0.11% by the end of trading in Tokyo, closing the day at 1,713.36.
In fresh data out during the session, household spending in Japan was down 5.1% year-on-year in real terms for October, on the back of an increase in sales tax during the month.
On the mainland, the Shanghai Composite was 0.43% firmer at 2,912.01, and the smaller, technology-heavy Shenzhen Composite grew by 0.82% to 1,640.33.
South Korea’s Kospi was 1.02% higher at 2,081.85, while the Hang Seng Index was ahead 1.07% at 26,498.37.
Both of the blue-chip technology stocks were higher in Seoul, with Samsung Electronics up 1.82% and chipmaker SK Hynix 2.28% firmer.
Investor attention remained on the United States for much of the session, ahead of the release of the monthly nonfarm payrolls report later in the day.
The Labor Department’s weekly jobless claims data, released on Wednesday, showed claims fell by 203,000 last week to their lowest point in seven months.
On the never-ending trade saga taking place between Washington and Beijing, a Reuters report earlier in the day said China’s finance ministry was prepared to waive tariffs on soybean and pork imports from the United States, although little more detail was provided.
Markets have been riding a rollercoaster of indicators as to the state of trade negotiations between the two countries so far this month, ahead of a 15 December deadline set by Washington for a fresh round of punitive tariffs to be implemented on imports from China.
A report from the Wall Street Journal overnight said the two sides were still at odds as to the size of agricultural purchases made by China.
At the same time, China was keeping mum on the state of negotiations, after two conflicting comments from US president Donald Trump earlier in the week, in which he said he could delay a trade deal until after the 2020 presidential election, before suggesting talks were progressing well a day later.
“The toing and froing of trade talks continues,” said Markets.com analyst Neil Wilson.
“We’ll be waiting for any fresh signal and will only believe a deal once it’s been served up on the table, not when the chefs say it’s in the oven.”
Oil prices were lower as the region headed into the weekend, with Brent crude last down 0.05% at $63.36 per barrel, and West Texas Intermediate losing 0.28% to $58.27.
In Australia, the S&P/ASX 200 added 0.36% to 6,707.00, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.2% at 11,276.20.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.28% at AUD 1.4595, and the Kiwi advancing 0.36% to NZD 1.5223.