Asia report: Markets rise as Beijing and Washington begin trade talks

Markets in Asia finished in the green on Monday, with sentiment getting a fresh boost as Washington and Beijing started a new round of trade discussions.

In Japan, the Nikkei 225 was up 2.44% at 20,038.97, as the yen strengthened 0.24% against the dollar to last trade at JPY 108.25.

The broader Topix index advanced 2.81% to 1,512.53.

On the mainland, the Shanghai Composite was 0.72% higher at 2,533.09, and the smaller, technology-heavy Shenzhen Composite gained 1.71% to 1,301.41.

China and the US were holding trade talks at the vice-ministerial level in Beijing on Monday and Tuesday, with the US team saying they were meeting to hold “positive and constructive discussions”.

South Korea’s Kospi was ahead 1.34% at 2,037.10, while the Hang Seng Index in Hong Kong added 0.82% to 25,835.70.

Steel producer Dongbu Steel was the star performer on the Korean peninsula, flying 30% higher after its board announced it would issue new shares in a bid to attract fresh capital.

Oil prices were higher, with Brent crude last up 1.69% at $58.04 per barrel, and West Texas Intermediate rising 1.96% to $48.92.

In Australia, the S&P/ASX 200 rose 1.14% to 5,683.20, with the materials subindex finishing the day 2.22% higher.

Of the major miners, BHP was up 3.03%, Fortescue Metals added 3.26%, and Rio Tinto was ahead 2.69%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.7% at 8,806.04, led higher by payment technology firm Pushpay, which added 8.5%.

The company, which derives a majority of its revenue by offering electronic donation services to US churches, confirmed it had reached its goal of breaking even on a monthly cash flow basis before the end of 2018.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.27% at AUD 1.4017, and the Kiwi advancing 0.4% to NZD 1.4790.