Asia report: Markets rise as investors shrug off trade concerns
Markets in Asia finished higher on Monday, with investors turning a blind eye to losses on Wall Street on Friday which came on the back of a week of tense trade developments between the US and China.
AUD/USD
$0.6410
13:40 19/04/24
GBP/NZD
NZD2.1135
13:40 19/04/24
Hang Seng
16,224.14
10:21 19/04/24
Nikkei 225
37,068.35
09:44 19/04/24
USD/JPY
¥154.5900
13:40 19/04/24
In Japan, the Nikkei 225 was ahead 0.51% at 21,678.26, as the yen weakened 0.07% against the dollar to last trade at JPY 107.01.
The broader Topix index also saw good gains, rising 0.38%, with losses in the oil and coal sector more than offset by positive movements among financial plays and retailers.
On the mainland, the Shanghai Composite was up 0.26% at 3,139.33, and the smaller, technology-heavy Shenzhen Composite eked out gains of 0.01% to settle at 1,831.83.
South Korea’s Kospi was 0.6% higher at 2,444.08, while the Hang Seng Index in Hong Kong leapt 1.29% to close at 30,229.58.
The technology sector was a big winner in Seoul, with Samsung Electronics rising 1.65%, while carmakers and steel manufacturers declined, with Posco sinking 1.88%.
Markets were still wary of trade tensions between the US and China, although trader fears seemingly eased as the Asian session wore on.
“Trade war fears are not as intense as they were last week,” noted Mizuho Bank head of economics and strategy Vishnu Varathan.
US markets had finished Friday in the red, after Donald Trump told trade officials in Washington to consider $100bn in extra tariffs on imports from China.
China’s Ministry of Commerce retaliated on Friday, saying on Friday it would mount a “major response” if the US pressed ahead with its punitive tariff plans.
The president continued the war of words over the weekend , using his favourite medium in an apparent bid to compel Beijing to toe his line on Sunday.
He tweeted that China would lift its trade barriers, calling it the “right thing to do”.
Markets were also looking ahead to Tuesday, when Chinese president Xi Jinping was due to make a speech at the Boao Forum.
Oil prices were higher as the region went to bed, with Brent crude last up 1.09% at $67.85 per barrel, and West Texas Intermediate climbing 0.77% to $62.54.
In Australia, the S&P/ASX 200 added 0.35% to close at 5,808.70, with all subindices bar the energy sector finishing the day in positive territory.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.7% at 8,454.10, led higher by subscription broadcaster Sky - no relation to its London-listed namesake - which continued its recovery, rising 4.3%.
The down under dollars were mixed, with the Aussie weakening 0.15% against the greenback to AUD 1.3049, while the Kiwi strengthened 0.29% to last sit at NZD 1.3710.