Asia report: Markets move higher ahead of US-China trade talks

Markets in Asia finished higher on Wednesday, as investors cheered a report suggesting that Washington and Beijing had moved closer to reaching an agreement on trade.

In Japan, the Nikkei 225 was up 0.97% at 21,713.21, as the yen weakened 0.15% against the dollar to last trade at JPY 111.49.

The broader Topix index managed gains of 0.63% in Tokyo, to end the day at 1,621.77.

Of the major components of the benchmark index, automation specialist Fanuc was up 2.72%, fashion group Fast Retailing added 5.44%, and technology conglomerate SoftBank Group was ahead 0.69%.

On the mainland, the Shanghai Composite was 1.24% firmer at 3,216.30, and the smaller, technology-heavy Shenzhen Composite was on the front foot by 0.82% at 1,772.09.

South Korea’s Kospi was up 1.2% at 2,203.27, while the Hang Seng Index in Hong Kong was ahead 1.22% at 29,986.39.

Shares in software and internet group Tencent were up 3.28% in Hong Kong, having earlier reached its highest level in almost nine months.

Both of the blue-chip technology components were higher in Seoul, with Samsung Electronics moving 1.86% firmer, and chipmaker SK Hynix 4.58% higher.

Sentiment was positive for much of the session, ahead of the resumption of trade talks between the US and China in Washington on Wednesday.

During the day, executive vice-president for international affairs at the US Chamber of Commerce, Myron Brilliant, told media that a trade deal between the two economic superpowers was 90% complete.

The remaining 10%, however, was the most difficult part, with concessions required from both sides, Brilliant was reported as saying in the Financial Times.

Oil prices were higher as the region went to bed, with Brent crude last up 0.45% at $69.68 per barrel, and West Texas Intermediate rising 0.14% to $62.67.

In Australia, the S&P/ASX 200 moved 0.68% higher to close at 6,285.00, following fresh data showing retail sales hit a 15-month high in the sunburnt country in February.

The country’s trade surplus, meanwhile, moved well past expectations to reach the second-highest level on record.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was the region’s odd one out, snapping a six-day winning streak as it fell 0.2% to 9,939.26, led lower by energy generator and retailer Genesis, which was off 5.5% as its stock went ex-dividend.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.66% at AUD 1.4048, and the Kiwi advancing 0.55% to NZD 1.4717.