Asian Stocks Recover from Early Losses to Finish Bullish
By Investors Hub
Asian stocks recovered from early losses to finish mostly higher on Monday as news of U.S.-China trade talks raised hopes for a de-escalation in trade tensions.
China and the United States will hold lower-level trade talks this week, just before new U.S. tariffs on $16 billion of Chinese goods take effect.
Chinese shares hit 2-1/2-year lows in early trading before reversing direction to end sharply higher following reports that China’s securities regulator is in discussion with brokerage economists and strategists to contain market volatility.
The benchmark Shanghai Composite Index jumped 29.50 points or 1.1 percent to 2,698.47, while Hong Kong’s Hang Seng Index surged up 384.61 points or 1.4 percent at 27,598.02.
Meanwhile, Japanese shares fell modestly in thin trading as investors awaited the latest developments in U.S.-China trade negotiations.
The Nikkei 225 Index dropped 71.38 points or 0.3 percent to 22,199.00, while the broader Topix Index closed 0.3 percent lower at 1,692.15, marking the lowest level since early April.
Tech stocks followed their U.S. peers lower after the Philadelphia SE Semiconductor index dropped 0.7 percent on Friday. Sumco Corp fell over 3 percent, while Advantest and Tokyo Electron dropped more than 1 percent each.
FamilyMart UNY Holdings shares fell as much as 11.3 percent after climbing 5.4 percent in the previous session.
Australian shares ended little changed as gains in material stocks were offset by disappointing outlooks from the likes of Woolworths Group and Ansell. The benchmark S&P/ASX 200 Index ended roughly flat at 6,345, while the broader All Ordinaries Index inched up 0.1 percent to 6,435.10.
Fortescue Metals Group rose 1.2 percent despite the company reporting a 58 percent fall in full-year statutory net profit.
Mining heavyweight BHP Billiton gained 1.3 percent and Rio Tinto edged up 0.3 percent. Gold miners Evolution and Newcrest jumped around 2.5 percent.
Woolworths Group shares shed 0.6 percent after the supermarket giant said that sales growth dropped off early in the new financial year. Rubber products maker Ansell plunged 7.2 percent after a profit warning over rising costs.
The big four banks ended down between 0.3 percent and 0.9 percent while energy companies Santos, Oil Search and Woodside Petroleum climbed 1-2 percent.