Asian markets gained in early trading Tuesday, ahead of the first round of trade negotiations between the U.S. and China since early May.
Talks are scheduled to begin Tuesday in Shanghai, though expectations are low. “I don’t know if they’re going to make a deal,” President Donald Trump said last week. “Maybe they will, maybe they won’t.”
Investors were also watching two influential central banks. The Bank of Japan announced Tuesday that it will leave its monetary policy unchanged, as expected, and maintained its guidance of extremely low rates at least through spring 2020, while noting it would not hesitate to take easing action if necessary. Traders had been looking for indications of future easing in the wake of the European Central Bank’s signal last week of a potential rate cut to come. Meanwhile, the U.S. Federal Reserve is expected to announce a small rate cut on Wednesday, its first since 2008.
Japan’s Nikkei NIK, +0.29% rose 0.7% and Hong Kong’s Hang Seng Index HSI, +0.23% gained 0.5%. The Shanghai Composite SHCOMP, +0.42% advanced 0.7% while the smaller-cap Shenzhen Composite 399106, +0.56% surged 1%. South Korea’s Kospi 180721, +0.46% rose 0.7%. Taiwan’s Taiex Y9999, -0.50% slipped, while benchmark indexes in Singapore STI, +0.11% and Indonesia JAKIDX, +0.68% gained. Australia’s S&P/ASX 200 XJO, +0.32% advanced 0.2%.
Among individual stocks, robotics maker Fanuc 6954, +2.85% rose in Tokyo trading, as did chip maker Tokyo Electron 8035, +2.59% and Hitachi 6501, +2.51% . In Hong Kong, Sunny Optical 2382, +1.02% , Ping An Insurance 2318, +0.74% and Wharf Real Estate 1997, +1.96% posted sold gains. Samsung 005930, +0.65% advanced in South Korea, while LG Electronics 066570, -1.75% slipped. In Australia, Beach Energy BPT, +0.24% and BHP BHP, +0.55% ticked up.
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