Asian Stocks Rise Broadly on Thursday

By Investors Hub

Asian stocks rose broadly on Thursday as easing political tensions in Hong Kong and Britain helped improve investors’ appetite for risk.

Investors also cheered news that the U.S. and China have agreed to hold ministerial-level trade talks in Washington in early October.

Chinese stocks closed higher on hopes that Beijing will cut lenders’ reserve requirements again to shore up the economy.

The benchmark Shanghai Composite Index climbed 28.45 points, or 1 percent, to 2,985.86, although Hong Kong’s Hang Seng Index edged slightly lower after yesterday?s rally.

Japanese shares hit a one-month high as the U.S. and China agreed to resume trade talks and Hong Kong withdrew the contentious extradition bill that sparked recent protests. The Nikkei 225 Index spiked 436.80 points, or 2.1 percent, to 21,085.94, the highest close since August 2.

The broader Topix closed 1.8 percent higher at 1,534.46, with precision machinery and sea transport stocks pacing the gainers.

Medical-related service provider M3 Inc. soared 10 percent, while baseball stadium operator Tokyo Dome Corp. slumped 8.4 percent as index provider Nikkei announced changes to the Nikkei 225 share average.

Tech stocks surged, with Advantest spiking 6.6 percent and Tokyo Electron jumping 4.2 percent. Nissan Motor advanced 2 percent as its President and CEO Hiroto Saikawa reportedly admitted to being overpaid by an equity-linked remuneration scheme designed by Chairman Carlos Ghosn.

Australian markets followed global peers higher amid easing worries over political risks in Britain, Italy and Hong Kong. The benchmark S&P/ASX 200 Index climbed 60.20 points, or 0.9 percent, to 6,613.20, while the broader All Ordinaries Index ended up 64.70 points, or 1 percent, at 6,720.80.

The big four banks rose between 0.7 percent and 1.1 percent, while mining giant Rio Tinto advanced 1.8 percent and smaller rival Fortescue Metals Group jumped 3.4 percent. Coal miner Whitehaven Coal plunged 9.4 percent on going ex-dividend.

CYBG shares slumped 20.3 percent after the British lender said it expected to bear a ‘material’ cost following a spike in claims for mis-sold payment protection insurance.

Woodside Petroleum, Santos, Origin Energy and Oil Search rose 1-2 percent after oil prices soared over 4 percent overnight on the back of positive economic data from China.

Department store operator Myer Holdings jumped 10.5 percent after it swung to an annual profit versus a loss last year.

On the other hand, retail pharmacy group Sigma Healthcare dropped 1.6 percent after reporting an 81 percent slump in half-year profits.

Australia’s trade surplus declined in July as exports logged only marginal growth, data from the Australian Bureau of Statistics showed today. The trade surplus declined to A$7.26 billion in July from June’s record A$7.97 billion.

Seoul stocks advanced after reports that negotiating teams from China and the U.S. will meet in Washington in early October to look for a solution to their year-long trade dispute.

The benchmark Kospi rose 16.22 points, or 0.8 percent, to close at 2,004.75, breaching the psychologically significant 2,000 level for the first time since August 1.

Market bellwether Samsung Electronics climbed 3.6 percent, while chipmaker SK Hynix jumped 3.8 percent.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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