Dipo Olowookere
By Investors Hub
Asian stocks advanced on Tuesday amid bets that the European Central Bank and the U.S. Federal Reserve will ease monetary policy to support economic growth. Investors also cheered media reports of the U.S. and China resuming trade negotiations next week.
Chinese stocks moved higher after the South China Morning Post newspaper reported that a few U.S. officials were planning to visit China next week to resume trade talks.
The benchmark Shanghai Composite Index gained 12.97 points or 0.5 percent to finish at 2,899.94, while Hong Kong’s Hang Seng Index rose 95.22 points 0.3 percent to 28,466.48.
Japanese shares posted strong gains on expectations of upbeat corporate earnings from major companies this week. The Nikkei 225 Index jumped 204.09 points or 1 percent to 21,620.88, its highest closing level since July 12. The broader Topix closed 0.8 percent higher at 1,568.82.
Chip-related stocks surged after U.S. President Donald Trump agreed at a meeting with the heads of top technology companies on Monday to make “timely” decisions on whether U.S. companies could sell goods to China’s Huawei Technologies.
Tokyo Electron rose over 3 percent, Advantest gained 0.9 percent and Disco Corp. advanced 1.6 percent.
Apple components makers also gained ground on a Wall Street Journal report that Apple may be closing in on a deal to buy up Intel’s abandoned smartphone modem business for $1 billion. TDK Corp., Alps Alpine and Murata Manufacturing Co. all rose over 2 percent.
Heavyweight SoftBank Group soared 4 percent amid buzz that Sprint and T-Mobile may finally be able to close their $26.5 billion mega-merger.
Australian stocks advanced as investors awaited key interest rate decisions by the European Central Bank, the Bank of Japan and the Federal Reserve.
The benchmark S&P/ASX 200 Index climbed 33.40 points or 0.5 percent to 6,724.60, while the broader All Ordinaries Index ended up 31.30 points or 0.5 percent at 6,812.50.
Higher oil prices buoyed energy stocks, with Oil Search, Santos, Woodside Petroleum, Origin Energy and Beach Energy rising between 0.9 percent and 2.5 percent.
Banks ANZ and Westpac eked out modest gains, while NAB advanced 1.1 percent after a top RBA official said the central bank was ready to cut rates again “if needed.”
Tech stocks followed their U.S. peers higher, with WiseTech Global adding 1.3 percent and Xero gaining 1.5 percent.
Miners ended mixed after iron ore prices fell on Monday. Online retailer Kogan.com jumped 4.8 percent after forecasting strong second half profit growth.
Seoul stocks ended higher on hopes of more policy easing and optimism over possible new U.S.-China talks. The benchmark Kospi ended up 8.11 points or 0.4 percent at 2,101.45.
Financials and utilities led the surge, while automakers declined despite solid second-quarter earnings. Shinhan Financial Group rallied 1.9 percent and Korea Electric Power Corp. jumped 4.8 percent.
