Asia report: Markets mostly higher as Syria, trade fears ease
Markets in Asia finished mostly higher on Friday, as markets breathed a small sigh of relief after US president Donald Trump said missile strikes on Syria might not be as imminent as previously suggested.
AUD/USD
$0.6521
00:44 26/04/24
GBP/NZD
NZD2.1020
00:43 26/04/24
Hang Seng
17,284.54
10:21 25/04/24
Nikkei 225
37,628.48
09:43 25/04/24
USD/JPY
¥155.5960
00:43 26/04/24
In Japan, the Nikkei 225 was up 0.55% at 21,778.74, as the yen weakened 0.34% against the dollar to last trade at JPY 107.69.
Financial plays and materials stocks took advantage of the weaker yen during the session in Tokyo, leading the broader Topix index 0.63% higher.
On the mainland, the Shanghai Composite was down 0.65% at 3,159.39, and the smaller, technology-heavy Shenzhen Composite slid 0.32% to 1,834.38.
Fresh data out of Beijing showed exports were down 3.7% year-on-year in dollar-denominated terms in China in March, which fell short of market expectations.
Imports surged 14.4% on a dollar-denominated basis, well ahead of the 10% improvement expected by economists polled by Reuters.
The People’s Republic also posted a trade deficit - a rare occurrence in the heavily industrial export economy - which came to $4.98bn in March.
South Korea’s Kospi was 0.51% firmer at 2,455.07, while the Hang Seng Index in Hong Kong slipped 0.07% to settle at 30,808.38.
Cosmetics names were among the winners in Seoul, with Amorepacific surging 3.55%.
The swing in investor confidence to a more positive territory came after US president Donald Trump used Twitter to hint that an attack on Syria was perhaps not as imminent as he had previously suggested.
“Never said when an attack on Syria would take place,” the Donald wrote overnight.
“Could be very soon or not soon at all!”
Trump had used his favourite dissemination medium earlier in the week to warn Syria ally Russia that US missile strikes should be expected in the country, following reports of an apparent chemical attack at the weekend.
That saw global markets enter a downward spiral as tensions heated up.
“Market sentiment remains at the mercy of political rhetoric,” noted National Australia Bank senior foreign exchange analyst Rodrigo Catril.
“The theme from the overnight session is that there are encouraging signs of an ease in tensions in Syria along with improved prospects for resolutions in trade tensions.”
Trade sentiment was also boosted by Trump reportedly asking his advisors to consider whether the US could or should rejoin the Trans-Pacific Trade Partnership.
The president pulled out of the major deal on the back of a big election promise last year, following which the remaining 11 countries suspended a number of controversial terms pushed in by the US, and signed the agreement.
Trump later tweeted that he would only sign the US back up to the deal if it was “substantially better” than what was on the table under his predecessor Barack Obama - something which could prove difficult, as the suspended terms can only be reinstated with the unanimous agreement of all signatories.
Oil prices were lower as the region entered the weekend, with Brent crude last down 0.36% at $71.76 per barrel and West Texas Intermediate also off 0.36% at $66.83
In Australia, the S&P/ASX 200 was 0.23% higher at 5,829.10, while across the Tasman Sea, New Zealand’s S&P/NZX 50 eked out gains of 0.1% to finish at 8,414.77.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.57% at AUD 1.2821, and the Kiwi advancing 0.11% to NZD 1.3543.