Dipo Olowookere
By Investors Hub
Asian stocks ended on a mixed note on Tuesday as investors awaited concrete details of a possible interim U.S.-China trade deal.
Chances of an early trade deal brightened after U.S. President Donald Trump said he expected to sign a significant part of the deal ahead of schedule but did not specify an exact date.
The office of the U.S. Trade Representative said Monday that Washington would consider whether to extend certain tariff suspensions on $34 billion worth of imports from China that are set to expire on December 28 this year.
Investors also awaited a Federal Reserve interest rate decision this week for clues on the future path of U.S. interest rates.
Chinese shares fell despite Trump’s upbeat remarks about the prospects for a trade deal with China. The benchmark Shanghai Composite Index dropped 25.87 points, or 0.9 percent, to 2,954.18, while Hong Kong’s Hang Seng Index ended down 104.50 points, or 0.4 percent, at 26,786.76.
Japanese shares hit their highest level in more than a year after Trump said he hopes to sign a trade deal with China’s President Xi Jinping next month at a summit in Chile.
The Nikkei 225 Index climbed 106.86 points, or 0.5 percent, to 22,974.13 after hitting as high as 23,008.43 earlier in the day, the highest since October 11, 2018. The broader Topix closed 0.9 percent higher at 1,662.68.
Toyota Motor, Sony, Honda Motor and Nissan Motor rallied 1-2 percent as the yen traded marginally lower after the release of inflation data.
Japanese core consumer prices, which exclude volatile food prices, rose an annual 0.5 percent in October, staying well below the Bank of Japan’s elusive 2 percent target and keeping the central bank under pressure to ramp up stimulus.
Canon shed 0.8 percent after the company lowered its fiscal 2019 earnings outlook for the third time.
Market heavyweight SoftBank Group jumped 2.6 percent on reports that Saudi Arabia is discussing the possibility of investing more money into its second Vision Fund.
Australian markets fluctuated before closing on a flat note. The benchmark S&P/ASX 200 Index inched up 4.70 points, or 0.1 percent, to 6,745.40, while the broader All Ordinaries Index crept up 6 points, or 0.1 percent, to 6,848.50.
Mining heavyweights BHP and Rio Tinto surged more than 1 percent each. Energy stocks finished broadly lower after crude oil prices closed lower overnight to snap a four-day winning streak.
Bravura Solution soared 4.7 percent after the company said it would acquire FinoComp for a total consideration of $25 million.
Bega Cheese slumped 12.8 percent as the diary and grocery producer warned of weaker earnings in fiscal 2020 due to lower demand for its unbranded products and higher milk prices.
Seoul stocks ended marginally lower after survey data from the Bank of Korea showed that confidence among South Korean manufacturers is set to weaken in November.
The business survey index on business conditions in manufacturing rose one point to 72 in October, but the outlook for next month fell one point to 72.
