Asia report: Most markets rise as trade deal rumours swirl

Most markets in Asia were higher on Monday, led by a jump in Chinese bourses as the rumour mill pumped out hints that Washington and Beijing were coming closer to a trade deal.

In Japan, the Nikkei 225 was up 1.02% at 21,822.04, as the yen weakened 0.04% against the dollar to last trade at JPY 111.93.

The broader Topix index ended the day ahead 0.73% in Tokyo, at 1,627.59.

On the mainland, the Shanghai Composite was ahead 1.12% at 3,027.58, and the smaller, technology-heavy Shenzhen Composite increased 2.21% to 1,599.48.

It was the first time since June last year that the Shanghai benchmark had topped the 3,000 mark.

South Korea’s Kospi was the odd one out, falling 0.22% to settle at 2,190.66, while the Hang Seng Index in Hong Kong managed gains of 0.51% to 28,959.59.

The negative movements in Seoul were broad-based, with blue-chip technology giant Samsung Electronics slipping 0.55% by the end of the day.

Sentiment in the region was given a boost by a report from the Wall Street Journal overnight, which suggested administrations from China and the US were “in the final stage of completing a trade deal”.

According to the reports, Beijing had conceded to lowering tariffs on a number of US products, while Washington was set to cancel almost all of the trade sanctions it had placed on Chinese imports in 2018.

Oil prices were higher as the region went to bed, with Brent crude last up 1.22% at $65.87 per barrel, and West Texas Intermediate adding 1.34% to $56.56.

In Australia, the S&P/ASX 200 advanced 0.4% to 6,217.40, with the country’s major mining plays in the green.

BHP was up 1.18% in Sydney trading, while Fortescue Metals rocketed 6.86% and Rio Tinto shares advanced 1.59%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.7% higher at 9,413.49, having touched a new record level of 9,420.14 during the day.

Specialist dairy products exporter A2 Milk - which derives much of its revenue from China - was the leader of the benchmark, rising 3.2%, while its supplier Synlait Milk improved 1.8%.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.1% at AUD 1.4113, and the Kiwi advancing 0.13% to NZD 1.4692.