Modupe Gbadeyanka
By Investors Hub
Asian stocks rose on Monday after the U.S. and China reached a “phase one” trade deal last week and the U.S. agreed to hold off on tariff hikes planned for this week, providing a temporary reprieve for global markets.
As trade uncertainty weighs on economic activity, investors also remain hopeful that the Federal Reserve will cut interest rates later this month. Japanese markets were closed for a holiday.
Chinese shares rallied as signs of improvement in trade relations between the U.S. and China helped investors shrug off concerns about the country’s economic health.
The benchmark Shanghai Composite Index jumped 34.23 points, or 1.2 percent, to 3,007.88, while Hong Kong’s Hang Seng Index ended the session up 213.41 points, or 0.8 percent, at 26,521.85.
Official data showed Chinese exports declined more than expected in September, reflecting weak global growth and the trade dispute with the U.S.
In dollar terms, exports fell 3.2 percent year-on-year, the General Administration of Customs said. This was bigger than the expected 3 percent decrease and the prior month’s 1 percent fall.
At the same time, imports decreased 8.5 percent annually versus the expected decline of 6 percent. As a result, the trade surplus increased to $39.65 billion from $34.83 billion a month ago.
Australian markets advanced for a third straight session, with banks and miners leading the surge amid signs of progress on trade negotiations between the U.S. and China.
The benchmark S&P/ASX 200 Index climbed 35.80 points, or 0.5 percent, to 6,642.60, while the broader All Ordinaries Index ended up 36 points, or 0.5 percent, at 6,757.90.
Mining heavyweights BHP and Rio Tinto jumped around 2 percent, while smaller rival Fortescue Metals Group advanced 1.6 percent.
Energy stocks gained ground after oil prices jumped sharply last Friday amid renewed geopolitical tensions following reports of an attack on an Iranian oil tanker.
Santos soared 5.7 percent after the company said it would buy ConocoPhillips’ northern Australia business for up to $1.44 billion. Woodside Petroleum gained 2.5 percent, Origin Energy rallied 1.8 percent and Oil Search climbed 2.5 percent.
The big four banks, which are facing a probe by the competition regulator into mortgage pricing, rose between 0.4 percent and 0.7 percent.
Seoul stocks posted strong gains after Samsung Electronics reported better than expected third quarter earnings last week. The Kospi jumped 22.79 points, or 1.1 percent, to 2,067.40. Samsung shares gained 1.7 percent and SK Hynix added 0.6 percent.
