Asia report: Markets finish higher on renewed US-China trade hopes

In Japan, the Nikkei 225 was up 0.41% at 21,709.57, as the yen strengthened 0.16% against the dollar to last trade at JPY 108.06.

Of the major components on the benchmark index, automation specialist Fanuc was up 2% and technology conglomerate SoftBank Group rose 1.01%, while fashion firm Fast Retailing slipped 0.43%.

The broader Topix index grew 0.4% to finish the Tokyo trading day at 1,575.09.

On the mainland, the Shanghai Composite was 0.8% firmer at 2,923.28, and the smaller, technology-heavy Shenzhen Composite moved 1.11% higher at 1,562.97.

South Korea’s Kospi was down 0.91% at 2,082.30, while the Hang Seng Index in Hong Kong managed gains of 0.2% to close at 28,524.04.

The blue-chip technology stocks were lower in Seoul, with Samsung Electronics down 1.9% and chipmaker SK Hynix off 1.52%.

Apple supplier LG Display was 3.81% lower, after its second quarter operating loss came in larger than expected.

The company said it was seeking a diversification to is supplier base, as the diplomatic dispute between Seoul and Tokyo was leading to restrictions on exports from Japan to the Korean peninsula.

Sentiment began more buoyant at the start of the Asian day, amid reports that in-person trade negotiations between Washington and Beijing would start next week, with White House officials set to seek longer term discussions.

“But with US officials accusing China to ‘steal its way’ to economic dominance, and Chinese officials blaming the US’ ‘black hand’ behind the Hong Kong protests, the negotiations may happen in quite a tense environment,” said London Capital Group senior market analyst Ipek Ozkardeskaya.

“The possibility of a comprehensive trade deal remains low in next week’s US-China meeting.”

Oil prices were higher as the region went to bed, with Brent crude last up 0.08% at $63.88 per barrel, and West Texas Intermediate 0.26% firmer at $56.92.

In Australia, the S&P/ASX 200 was up 0.77% to finish its session at 6,776.70, while across the Tasman Sea, New Zealand’s S&P/NZX 50 lost 0.5% to close its day at 10,812.54.

The down under dollars were mixed against the greenback, with the Aussie last 0.27% weaker at AUD 1.4314, while the Kiwi strengthened 0.03% to NZD 1.4912.