Asia report: Markets rise ahead of Trump-Xi meeting in Japan

Markets in Asia finished in the green on Thursday, with investors holding their breath ahead of a meeting between US president Donald Trump and his Chinese counterpart Xi Jinping at the G20 summit in Japan.

In Japan itself, the Nikkei 225 was up 1.19% at 21,338.17, as the yen weakened 0.11% against the dollar to last trade at JPY 107.91.

Of the major components on the Tokyo benchmark, automation specialist Fanuc was up 1.65% and technology conglomerate SoftBank Group surged 3.46%, while fashion firm Fast Retailing was 0.02% lower.

Japan Display, which supplies technology to Apple, rocketed 18.33% amid reports that the California electronics giant was preparing to invest $100m into the flagging screen firm.

The broader Topix index finished its trading day 1.23% higher, settling at 1,553.27.

On the mainland, the Shanghai Composite was 0.69% higher at 2,996.79, and the smaller, technology-heavy Shenzhen Composite was ahead 1.09% at 1,577.56.

South Korea’s Kospi was 0.59% firmer at 2,134.32, while the Hang Seng Index in Hong Kong added 1.42% to 28,621.42.

The blue-chip technology stocks were higher in Seoul, with Samsung Electronics rising 1.75% and chipmaker SK Hynix ahead 1.89%.

Sentiment was weaker at the start of the Asian trading day, as Wall Street markets reversed earlier gains in their Thursday session to finish mostly lower.

There was some hope on the trade front, however, after Treasury Secretary Steven Mnuchin told media that he believed there was “a path” for Washington and Beijing to find common ground and strike a deal.

“Stocks in Asia roared and the Australian dollar advanced the most among the G10 versus the greenback on confirmation that Trump and Xi will meet on 29 June at 1130 local time in Osaka,” noted London Capital Group senior market analyst Ipek Ozkardeskaya.

“It is important to note that the chances of a trade-deal remain low.”

Oil prices were lower as the region went to bed, with Brent crude last down 0.74% at $66.00 per barrel, and West Texas Intermediate falling 0.75% to $58.94.

In Australia, the S&P/ASX 200 was 0.39% stronger at 6,666.30, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.2% at 10,431.22.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.16% at AUD 1.4293, and the Kiwi advancing 0.17% to NZD 1.4941.