Asian Shares Rise as Investors Anticipate Trump/Kim Summit
By Investors Hub
Most Asian stocks rose on Monday as upbeat jobs and manufacturing data from the U.S. bolstered optimism in the world’s largest economy and U.S. President Donald Trump revealed that his summit with North Korean leader Kim Jong Un is back on.
Chinese stocks closed higher even as trade worries persisted after China warned that it will withdraw from commitments made so far on trade if Trump carries out his threat to impose tariffs on the country.
The benchmark Shanghai Composite Index rose 16.05 points or 0.5 percent to 3,091.19, while Hong Kong’s Hang Seng Index jumped 505.07 points or 1.7 percent to close at 30,997.98.
Japanese shares hit a one-week high, with a weaker yen and solid data from the U.S. buoying investor sentiment. The Nikkei 225 Index surged up 304.59 points or 1.4 percent to 22,475.94, and the broader Topix Index closed 1.5 percent higher at 1,774.69.
Automaker Toyota rallied 3.9 percent on a brokerage upgrade and rivals Honda Motor and Nissan Motor rose around 2 percent. Tech shares also gained ground, with Tokyo Electron and TDK Corp climbing 2-4 percent.
Australian shares hit their highest level in ten days, with mining and financial stocks leading the surge as base metal prices strengthened and Commonwealth Bank agreed to settle a civil lawsuit.
Investors also cheered encouraging local economic data. While Australian retail sales rose 0.4 percent sequentially in April, beating forecasts for 0.3 percent growth, company operating profits in the country grew 5.9 percent in the first three months of 2018 after a 2.2 percent gain in the three months prior, separate reports showed.
The benchmark S&P/ASX 200 Index rose 35.10 points or 0.6 percent to 6,025.50, while the broader All Ordinaries Index ended up 34.60 points or 0.6 percent at 6,138.60.
Commonwealth Bank shares advanced 1.4 percent, although the other three big banks closed narrowly mixed ahead of RBA monetary policy decision out Tuesday.
Miners BHP Billiton, Fortescue Metals Group and Rio Tinto rose between 0.4 percent and 0.7 percent, helped by a rally in base metal prices Friday night.
Vicinity Centres jumped 2.6 percent after the shopping centre operator said it will sell up to A$1 billion of medium-sized and neighborhood shopping centers to fund development of prestige projects.