Asian markets were mostly higher in early trading Wednesday, after reports that the U.S. and China will soon resume trade negotiations.
A delegation led by U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will fly to Shanghai for high-level talks next week, the Wall Street Journal reported Tuesday. White House economic adviser Lawrence Kudlow said China may be prepared to buy more U.S. agricultural products as a “good-will gesture.” Top U.S. and Chinese negotiators have not met in person since talks stalled in early May.
Japan’s Nikkei rose 0.5% NIK, +0.42% while Hong Kong’s Hang Seng Index HSI, +0.93% gained about 0.9%. The Shanghai Composite SHCOMP, +1.01% advanced 1% and the smaller-cap Shenzhen Composite 399106, +1.39% was up 1.4%. South Korea’s Kospi 180721, -0.32% slipped 0.2%, while benchmark indexes in Taiwan Y9999, -0.09% , Singapore STI, +0.22% and Indonesia JAKIDX, -0.14% were mixed. Australia’s S&P/ASX 200 XJO, +0.60% rose 0.8%.
Among individual stocks, Screen Holdings 7735, +2.98% and Sony 6758, +1.66% rose in Tokyo trading. SoftBank 9984, +1.03% also gained after a report that Dish Network DISH, +3.37% has agreed to a $5 billion wireless-asset purchase, clearing the way for the mega-merger between T-Mobile TMUS, +0.62% and Sprint S, +1.29% , which is majority owned by SoftBank. In Hong Kong, Geely Automobile 175, +3.97% gained, as did Apple AAPL, +0.78% component suppliers Sunny Optical 2382, +4.76% and AAC 2018, +1.46% . Apple supplier LG Display 034220, -2.93% fell in South Korea after announcing a wider-than-expected quarterly operating loss. Westpac WBC, +1.65% and National Australia Bank NAB, +1.29% rose in Australia
Markets have welcomed any sign of possible progress on trade despite warnings the U.S.-Chinese truce is fragile because the two sides still are separated by the same disputes that caused talks to founder in May. Those include U.S. restrictions on technology sales to Chinese tech giant Huawei.
“Optimism will grow that this meeting could signal a key turning point in securing a final deal,” said Edward Moya of OANDA in a report.
Investors will be watching “whether we see China deliver some structural reform promises and if the U.S. removes any of the current tariffs on Chinese goods and softens its hard line on Huawei,” said Moya.
On Wall Street, stocks were broadly higher after major companies reported solid second quarter gains.
The benchmark S&P 500 index SPX, +0.68% rose 0.7% to 3,005.47. The Dow Jones Industrial Average DJIA, +0.65% also rose 0.7%, to 27,349.19. The Nasdaq composite COMP, +0.58% rose 0.6% to 8,251.40.
The gains followed several stumbles last week, extending a period of volatility in July as investors weigh a looming possible rate cut by the Federal Reserve as well as uncertainties over trade and the economy.
Nearly 150 companies in the S&P 500 are due to report results through Friday. Analysts are expecting earnings to decline overall for the second quarter in a row.
Benchmark U.S. crude CLU19, +0.35% gained 21 cents to $56.98 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 55 cents on Wednesday to close at $56.77. Brent crude BRNU19, +0.27% , used to price international oils, advanced 17 cents to $63.83 in London. It gained 57 cents in the previous session to $63.83.
The dollar USDJPY, -0.08% declined to 108.14 Japanese yen from Tuesday’s 108.23 yen.
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