Modupe Gbadeyanka
By Investors Hub
Asian stocks rose on Monday as the European Union agreed to London’s request for a Brexit deadline extension and reports suggested that Washington and Beijing are close to finalizing parts of a trade pact.
U.S. and Chinese officials said they are “close to finalizing” some parts of a phase one trade deal after high-level telephone discussions on Friday.
U.S. President Donald Trump has said he plans to sign the deal with Chinese President Xi Jinping at a summit in Chile next month.
Chinese stocks ended on a firmer note amid the apparent headway in U.S.-China trade talks and gains by technology stocks after Beijing pledged more support for the sector.
The benchmark Shanghai Composite Index jumped 25.12 points, or 0.9 percent, to 2,980.05, while Hong Kong’s Hang Seng Index climbed 223.87 points, or 0.8 percent, to 26,891.26.
Investors shrugged off a government report showing that Chinese industrial profits declined at a faster pace in September as producer prices continued to fall.
Industrial profits decreased 5.3 percent year-on-year after easing 2 percent in August, reflecting a faster drop in industrial product prices and a slower rise in sales.
Japanese shares hit a one-year high amid hopes of a U.S.-China trade deal as soon as next month. The Nikkei 225 Index rose 67.46 points, or 0.3 percent, to 22,867.27, the highest level in a year, while the broader Topix finished little changed at 1,648.43.
Semiconductor-related shares surged after Intel beat third-quarter earnings estimates. Sumco jumped 5.3 percent, Minebea Mitsumi soared 4.5 percent and Advantest added 3.8 percent. Robot manufacturer Fanuc gained 2.1 percent and transport firm Mitsui OSK Lines surged 1.5 percent.
Meanwhile, the Australian markets ended on a flat note. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both inched by 1.50 points to close at 6,740.70 and 6,842.50, respectively.
Firm commodity prices helped lift miners, with BHP rising 1.1 percent and Fortescue Metals Group climbing 2.2 percent. Energy stocks ended largely unchanged despite oil prices holding on to last week’s strong gains on expectations of supply cuts by OPEC and falling U.S. inventories.
IOOF Holdings gained 1.2 percent after the Australian Securities and Investments Commission imposed additional license conditions on the wealth manager that include the appointment of vetted independent directors and increased internal monitoring.
Rural Funds Group rallied 2.3 percent after it agreed to sell its network of 17 poultry farms to ProTen Investment Management for a combined A$72 million and reinvest in three cattle properties in Western Australia.
Virgin Australia lost 3.1 percent on fundraising reports. Metals and electronics recycler Sims Metal Management slumped 8.8 percent after forecasting an underlying core earnings loss for the first half.
In economic news, Fitch Ratings has maintained Australia’s sovereign ratings at ‘AAA’ with a stable outlook and said the rating is supported by its flexible policy framework that underpin positive economic growth.
Seoul stocks rose for the third straight day after reports that the U.S. and China are making progress in trade discussions. Hopes for a turnaround in the semiconductor market also underpinned sentiment.
The benchmark Kospi inched up 5.71 points, or 0.3 percent, to 2,093.60, closing above the 2,090 mark for the first time since September 24th.
