Asian Stocks Rise Despite Hike in Tariffs on Chinese Goods by US

May 10, 2019
Asian Stocks Rise Despite Hike in Tariffs on Chinese Goods by US

By Investors Hub

Asian stocks ended mostly higher on Friday as investors shrugged off the U.S. decision to increase tariffs on $200 billion worth of Chinese goods and remained hopeful of a breakthrough in trade talks.

China’s Shanghai Composite Index spiked 88.26 points or 3.1 percent to 2,939.21 and the yuan strengthened as state funds stepped in to prop up markets following the Trump administration’s latest tariff hike. Hong Kong’s Hang Seng Index advanced 239.17 points or 0.8 percent to 28,550.24.

Meanwhile, Japanese shares ended lower after the U.S. hiked tariffs on more than $200 billion in goods from China, raising concerns the trade dispute will dent global growth.

The Nikkei 225 Index ended down 57.21 points or 0.3 percent at 21,344.92, extending losses for a fifth straight session. For the week, the Nikkei ended down more than 4 percent, marking the biggest weekly loss this year. The broader Topix ended marginally lower at 1,549.42.

China-related stocks rebounded from recent losses on short-covering. Fanuc rose 0.8 percent and Yaskawa Electric gained 2.3 percent.

Panasonic Corp slumped 6.5 percent after warning profit this financial year would fall for the first time in eight years. Mitsubishi Motors lost 13.8 percent as Nomura Securities cut its target on the stock.

Australian markets fluctuated before finishing modestly higher as a federal election loomed and U.S.-China trade talks headed into a second day.

The benchmark S&P/ASX 200 Index rose 15.60 points or 0.3 percent to 6,310.90, while the broader All Ordinaries Index ended up 15.80 points or 0.3 percent at 6,393.10.

Energy stocks such as Origin Energy, Santos and Woodside Petroleum rose between half a percent and 1 percent as oil prices rose on optimism for a U.S.-China trade deal.

Mining heavyweights BHP and Rio Tinto ended slightly lower, while smaller rival Aurelia Metals gained 0.9 percent after it abandoned talks to buy the CSA mine in New South Wales.

Banks ended mostly higher showing modest gains despite the Reserve Bank of Australia downgrading its economic forecasts for GDP and underlying inflation this year.

Seoul stocks rose to snap a four-day losing streak as trade negotiations between the U.S. and China moved into a second day.

The benchmark Kospi inched up 6.03 points or 0.3 percent to 2,108.04. Tech heavyweight Samsung Electronics advanced 1.1 percent, while chipmaker SK Hynix fell 2.1 percent.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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