Asia report: Most markets rise as trade optimism returns
Most markets in Asia finished in the green on Thursday, as investors sifted through the latest developments on the US-China trade front, as well a a surprise on interest rates from India’s central bank.
In Japan, the Nikkei 225 was up 0.71% at 23,300.09, as the yen weakened 0.02% against the dollar to last trade at JPY 108.88.
It was a positive day for the benchmark’s major components, with Fanuc up 1.98%, Fast Retailing managing gains of 0.02%, and SoftBank Group 1.19% firmer.
The broader Topix index was 0.48% stronger, finishing up the trading session in Tokyo at 1,711.41.
On the mainland, the Shanghai Composite added 0.74% to 2,899.47, and the smaller, technology-heavy Shenzhen Composite was 1.15% higher at 1,626.97.
South Korea’s Kospi was in the red, losing 0.39% to close at 2,060.74, while the Hang Seng Index in Hong Kong was 0.59% firmer at 26,217.04.
Both of the blue-chip technology stocks were in the green in Seoul, with Samsung Electronics up 0.1% and SK Hynix 1.42% stronger.
The Reserve Bank of India surprised investors during the day, as it stood pat on interest rates, as the Nifty 50 finished flat.
Markets had been expecting a sixth rate cut from the country’s central bank, amid a serious slowdown in India’s economy.
Investors were also looking at overnight developments on the trade front, after a report from Bloomberg suggested the US and China were moving ever closer to a trade deal.
The report, citing people familiar with the trade negotiations, said Washington and Beijing were close to reaching agreement on which tariffs would be rolled back in a first phase agreement.
US president Donald Trump also said that trade talks were going well overnight, just one day after he suggested he could delay a trade deal until after the 2020 federal elections in the US.
Late in the day, Bloomberg also reported that China’s Ministry of Commerce spokesman Gao Feng said Chinese officials were in "close contact" with US counterparts on trade negotiations.
He also apparently reiterated that tariffs should be reduced proportionately as part of a phase one deal.
"Ultimately, we’ll only know what the true state of play is as we get closer to 15 December and the decision on the implementation of tariffs on the remaining $150bn of Chinese goods," said CMC Markets analyst Michael Hewson.
Oil prices were higher at the end of the Asian day, with Brent crude last up 1.05% at $63.67, and West Texas Intermediate rising 0.55% to $58.75.
In Australia, the S&P/ASX 200 advanced 1.16% to settle its trading day at 6,683.00, as fresh data showed retail sales were flat month-on-month in October.
That seasonally-adjusted figure from the Australian Bureau of Statistics disappointed, compared to the 0.3% rise anticipated by economists polled by Reuters.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.4% at 11,257.79, as the major banks rallied on news that new capital adequacy rules from the Reserve Bank of New Zealand would not be as strict as many had feared.
Australia and New Zealand Banking Group was up 2.1% in Wellington trading, while Westpac Banking Corporation was 0.3% firmer there.
Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.31% at AUD 1.4648, and the Kiwi retreating 0.01% to NZD 1.5320.