Chinese Stocks Lead Gains Posted by Asian Markets
By Investors Hub
Asian stocks rose broadly on Monday, with Chinese markets leading regional gains after U.S. President Donald Trump said he would delay the deadline for additional tariffs on Chinese goods set to begin on March 1.
Citing substantial progress in trade talks, Trump also indicated he plans to meet his Chinese counterpart Xi Jinping to reach a final deal.
Gains outside China were limited as investors adopted a cautious stance ahead of the second summit between Trump and North Korean leader Kim Jong Un.
Chinese shares soared as investors cheered the U.S. decision to extend the deadline for the tariff hike. The benchmark Shanghai Composite Index jumped 157.06 points or 5.6 percent to 2,961.28 to enter a bull market, while Hong Kong’s Hang Seng Index climbed 143.00 points or 0.5 percent to 28,959.30.
Japanese shares advanced after snapping a four-session winning streak to end lower on Friday. The Nikkei 225 Index rose 102.72 points or 0.5 percent to 21,528.23, reaching a ten-week high as investors monitored ongoing U.S.-China trade talks. The broader Topix closed 0.7 percent higher at 1,620.87.
Exporters Canon, Honda Motor, Panasonic and Sony advanced around 1 percent. Companies with exposure to China surged, with Keyence Corp surging up 4.3 percent and Yaskawa Electric jumping 2.7 percent. Nintendo gained 1 percent on share buyback news.
Australian markets rose after Trump said on Sunday he would extend a deadline to raise tariffs on Chinese imports and looked forward to a meeting with Xi to seal a deal. Upbeat earnings also offered some support.
The benchmark S&P/ASX 200 Index gained 19.00 points or 0.3 percent to finish at 6,186.30, while the broader All Ordinaries Index ended up 21.70 points or 0.4 percent at 6,263.60.
Mining stocks surged as renewed optimism on trade helped lift commodity prices, with copper hitting its highest level since last July.
BHP and Fortescue Metals Group climbed 1-2 percent and BlueScope Steel soared 6.3 percent after reporting a 42 percent jump in first-half profits on a double-digit increase in revenue and a weaker Australian dollar.
Brambles rallied 2.9 percent after it agreed to sell its reusable plastic container business. QBE Insurance jumped 4.2 percent as it swung back into the black on significantly reduced catastrophe claims.
On the other hand, Origin Energy lost 2.9 percent after the company said it would suffer a A$44 million hit to pre-tax earnings from proposed reforms to reduce the cost of energy for consumers.
Boral dropped 1.2 percent, oOh!Media plunged 8.6 percent and Lendlease Group slumped 6.4 percent on disappointing earnings.
stocks ended largely unchanged as investors looked ahead to the
upcoming summit between the United States and North Korea slated for
later this week.