Dipo Olowookere
By Investors Hub
Asian stocks ended mostly higher on Tuesday as Chinese trade data topped forecasts and investors awaited an announcement by President Donald Trump on whether he will withdraw from the nuclear deal with Iran.
China’s Shanghai Composite Index climbed 24.95 points or 0.8 percent to 3,161.60 after the release of upbeat trade figures for April. Hong Kong’s Hang Seng Index surged up 408.55 points or 1.4 percent to 30,402.81.
Chinese exports climbed 12.9 percent year-over-year in April, well above the expected rise of 6.8 percent. Imports spiked 21.5 percent from a year ago, exceeding economists’ forecast for an increase of 15.9 percent. The trade surplus totaled $28.8 billion in April versus the expected surplus of $25.7 billion.
Japanese shares recovered from a weak start to end modestly higher, led by banks and drug makers. The benchmark Nikkei 225 Index gained 41.53 points or 0.2 percent to end at 22,508.69, while the broader Topix Index closed 0.4 percent higher at 1,779.82.
Lender Mitsubishi UFJ Financial rose 0.9 percent, Sumitomo Mitsui Financial inched up 0.4 percent and Mizuho Financial Group gained 0.6 percent. Takeda Pharmaceutical Company soared 4 percent ahead of its announcement to buy larger rival Shire for $62.42 billion.
On the data front, average household spending in Japan fell 0.7 percent year-on-year in March, the Ministry of Internal Affairs and Communications said, coming in at 301,230 yen. That missed forecasts for an increase of 1.1 percent.
Australian shares ended marginally higher, led by financials as Australia and New Zealand Banking Group flagged the likelihood of an additional buyback of shares to the tune of $1 billion-$1.5 billion.
Investors also waited for the release of the annual budget amid expectations the government will announce hefty health and infrastructure spending and deliver tax cuts targeting lower and middle-income earners.
Meanwhile, market participants shrugged off soft retail sales figures for March. Retail sales remained flat in March, defying economists’ forecast for an increase.
The benchmark S&P/ASX 200 Index inched up 7.40 points or 0.1 percent to 6,091.90, while the broader All Ordinaries Index ended 7.60 points higher at 6,183.20.
ANZ shares rose over 1 percent, Commonwealth advanced 1.1 percent and Westpac added 1.3 percent. Investment bank Macquarie Group rallied 1.7 percent to extend gains for the fourth straight session.
Healthscope jumped 3.3 percent after Canada’s NorthWest Healthcare Properties REIT said it has taken a 10 percent interest in the company. Biotherapeutics company CSL climbed 1.5 percent.
Meanwhile, Beach Energy, Origin Energy, Woodside Petroleum and Santos dropped 1-2 percent as oil prices retreated from three-and-a-half-year highs ahead of Trump’s decision on Iran.
