Dipo Olowookere
By Investors Hub
Asian stocks rose on Monday despite conflicting signals from the U.S. and China on the trade front and a landslide victory by the pro-democracy camp in the Hong Kong district council election.
China’s Shanghai Composite Index surged up20.88 points, or 0.7 percent, to 2,906.17 after a tabloid run by the ruling Communist Party discounted “negative” media reports and said both countries were “very close” to a phase one trade deal.
China also remains committed to continuing talks for a phase two or even a phase three deal with the United States, the state-backed Global Times said on its Twitter feed.
Hong Kong’s Hang Seng Index rallied 1.5 percent to finish at 26,993.04 after pro-democracy candidates gained control of at least 12 out of 18 district councils in local elections, deepening the challenge for Chief Executive Carrie Lam’s government.
Japanese shares rose by the most in two weeks after U.S. President Donald Trump said that a long-negotiated trade deal with China is “potentially very close.” Chinese President Xi Jinping also said his nation wants to work toward a phase one trade agreement with the U.S.to de-escalate their trade war.
The Nikkei 225 Index climbed 179.93 points, or 0.8 percent, to 23,292.81, marking the biggest rise since November 12. The broader Topix advanced 0.7 percent to 1,702.96. Hitachi Construction Machinery, JFE Holdings and Pacific Metals Co all jumped over 4 percent.
Australian markets eked out modest gains as investors held out hopes for an interim U.S.-China trade deal to end their 16-month long tariff dispute.
The benchmark S&P/ASX 200 Index rose 21.60 points, or 0.3 percent, to 6,731.40, while the broader All Ordinaries Index ended up 19.10 points, or 0.3 percent, at 6,835.60.
Mining heavyweights BHP and Rio Tinto climbed 1.8 percent and 2 percent, respectively after China iron ore futures jumped on Friday on signs of strong demand.
Caltex Australia shares soared 7 percent after the fuel and convenience retailer said it would launch a property IPO and float a 49 percent stake in 250 retail sites.
Buy-now-pay-later firm Afterpay Touch Group also jumped 7 percent after releasing an update on its final Anti-Money Laundering and Counter-Terrorism Financing audit.
Meanwhile, Westpac dropped 1.3 percent as the corporate watchdog launched an investigation into the bank over potential legal breaches linked to the money laundering compliance scandal.
Crop protection firm Nufarm slumped 17.5 percent after releasing its half-year earnings update.
Seoul stocks rallied after both Washington and Beijing made positive comments on the potential for a trade deal. The benchmark Kospi ended up 21.54 points, or 1 percent, at 2,123.50.
Samsung Heavy Industries shares jumped 4.4 percent after the shipbuilder won a $1.5 billion LNG carrier order.
