Asia report: Markets higher on renewed hopes of trade war de-escalation
Markets in Asia finished in the green on Wednesday, on renewed hopes of an improvement in the political relationship between the US and China.
AUD/USD
$0.6500
02:08 25/04/24
GBP/NZD
NZD2.0980
02:07 25/04/24
Hang Seng
17,201.27
10:21 24/04/24
Nikkei 225
38,460.08
09:44 24/04/24
USD/JPY
¥155.2670
02:08 25/04/24
In Japan, the Nikkei 225 was up 2.15% at 21,602.75, as the yen weakened 0.04% against the dollar to last trade at JPY 113.43.
The broader Topix index was 1.99% stronger at 1,606.61 in Tokyo.
Carmakers were among the biggest gains in the country, on the back of positive trade developments between the US and China.
Mitsubishi Motor was up 2.9%, Nissan managed to rise 0.95%, and Yamaha Motor rocketed 4.18%.
On the mainland, the Shanghai Composite was 0.31% higher at 2,602.15, and the smaller, technology-heavy Shenzhen Composite managed gains of 0.16% to 1,346.03.
Among the car manufacturers in China, SAIC Motor was up 1.1% in Shanghai.
South Korea’s Kospi was 1.44% ahead at 2,082.57, while the Hang Seng Index in Hong Kong added 1.61% to 26,186.71.
Automobile stocks were among the biggest gainers in Seoul too, with Hyundai Motor up 6.28% and Kia Motor adding 3.03%.
As the region woke up on Wednesday, reports flowed from the US that Beijing was considering lowering tariffs on US-made cars to 15% from the current 40%.
It was seen as a step towards broader de-escalation, given the 40% tariff was slapped on US cars after China had lowered tariffs on all imported cars to 15% from 25% earlier in the year.
Adding to the positive sentiment was the news that Huawei’s chief financial officer, Meng Wanzhou, had been granted bail by Canada after being arrested at Vancouver Airport on behalf of the US.
Oil prices were higher, with Brent crude last 1.63% higher at $61.20 per barrel, and West Texas Intermediate adding 1.77% to $52.58.
In Australia, the S&P/ASX 200 gained 1.39% to 5,653.50, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.8% higher at 8,738.36.
The down under dollars were a mixed bag against the greenback, with the Aussie last 0.02% stronger at AUD 1.3877, and the Kiwi weakening 0.36% to NZD 1.46.