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Receding Trade Worries Buoys Asian Stocks

By Investors Hub

Asian stocks rose broadly on Tuesday amid receding trade worries after the United States and Mexico reached a preliminary trade agreement.

President Donald Trump also indicated the U.S. would soon begin negotiations with Canada but suggested that any agreement could be a separate deal. Investors expect Canada would agree to new terms to preserve a three-nation pact.

Hong Kong?s Hang Seng Index rose 80.35 points or 0.3 percent to 28,351.62, although China’s Shanghai Composite Index edged down 2.92 points or 0.1 percent to 2,777.98 ahead of factory PMI data due Friday.

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Japanese shares finished marginally higher as the U.S.-Mexico trade deal helped lift auto stocks. The Nikkei 225 Index breached 23,000 before giving up most gains to end the session up 13.83 points or 0.1 percent at 22,813.47. The broader Topix Index closed 0.2 percent higher at 1,731.63.

Automakers Toyota, Honda, Nissan and Mazda rose between 0.9 percent and 1.7 percent after Toyota said it would invest $500 million in Uber to jointly work on developing self-driving cars. Auto parts makers such as Aisin Seiki and Denso rose 1-2 percent.

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Australian markets finished notably higher after the Nasdaq and S&P 500 hit record highs overnight following a new trade agreement between the U.S. and Mexico.

The benchmark S&P/ASX 200 Index climbed 35.80 points or 0.6 percent to 6,304.70, while the broader All Ordinaries Index ended up 32.50 points or 0.5 percent at 6,413.60.

The big four banks climbed between 0.9 percent and 1.3 percent, and mining heavyweights BHP Billiton and Rio Tinto gained around 1 percent, taking support from higher commodity prices.

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Galaxy Resources soared 5.8 percent after South Korean steel giant Posco clinched a $280 million deal to buy lithium mining rights owned by the company in Argentina. Vitamin maker Blackmores jumped 11.5 percent after expanding into the weight loss sector.

On the other hand, Caltex Australia slumped nearly 8 percent after the oil refiner said it was in talks to sell certain retail assets. Accent Group lost 6.7 percent despite the Athlete’s Foot brand owner reporting a more than 50 percent increase in full-year profit.

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Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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