Asia report: Markets finish higher as Trump boosts trade sentiment
Markets in Asia finished on a positive note on Wednesday, as sentiment on the US-China trade situation improved overnight.
In Japan, the Nikkei 225 was up 1.34% at 21,144.48, as the yen weakened 0.32% against the dollar to trade at JPY 110.83.
The broader Topix index managed to gain 1.06% in Tokyo, ending the session at 1,589.33.
On the mainland, the Shanghai Composite was 1.84% higher at 2,721.07, and the smaller, technology-heavy Shenzhen Composite improved 1.87% to 1,389.68.
South Korea’s Kospi was ahead 0.5% at 2,201.48, while the Hang Seng Index in Hong Kong rose 1.16% to 28,497.59.
On the trade front, sentiment was given a boost after US president Donald Trump said overnight that he would consider delaying the 2 March deadline previously imposed on his government reaching a deal with their counterparts in Beijing.
If the deadline was not reached, Washington had said it planned to implement another round of punitive tariffs on imports from China.
Analysts at DBS Group Research warned against too much enthusiasm, however, telling traders not to count their chickens before they hatched.
“The pendulum on whether a US-China trade deal could be struck has been swinging with US president Donald Trump's comments on his on-off meeting with China president Xi Jinping to extending talks beyond 1 March,” they wrote.
“The extension will only be possible if China accedes to US's push for enforcement mechanisms on areas such as forced technology transfer and intellectual property protection.”
US Treasury secretary Steven Mnuchin and US Trade Representative Robert Lighthizer are in Beijing for another round of bilateral talks this week.
Oil prices were higher as the region went to bed, with Brent crude last up 0.7% at $62.86 per barrel, and West Texas Intermediate rising 0.43% to $53.33.
In Australia, the S&P/ASX 200 went against the regional trend, slipping 0.25% to 6,063.60.
Oil play Beach Energy was one of the big winners in Sydney, surging 5.33% after it reported improved sales revenue in its interim report, as well as lifting its guidance.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.6% at 9,333.38, led higher by Tourism Holdings, which was ahead 3.1%.
The Reserve Bank of New Zealand stood pat on interest rates in its latest policy decision, leaving the country’s official cash rate at 1.75%.
In its statement, the central bank said the next move for rates could be either way, though it appeared to be angling towards a move higher.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.21% at AUD 1.4064, and the Kiwi advancing 1.12% to NZD 1.4678 in the wake of the latest interest rate decision in that country.