newsdog Facebook

Asian Shares Recover To Close Mostly Higher

RTTNews 2018-07-12 15:12:13

Asian stocks closed higher Thursday on expectations that the U.S. threats to expand tariff hikes is bluff and bluster and trade agreements will ultimately be reached.

Oil steadied after going into free fall on Wednesday amid supply concerns and the yen weakened ahead of U.S. consumer price inflation due tonight, while gold held steady near one-week low.

China's Shanghai Composite index climbed 59.89 points or 2.16 percent to 2,837.66 after losing 1.8 percent the previous day on trade worries.

China has vowed to take countermeasures in response to the new U.S. tariffs, which will not effect until after a two-month review process. Hong Kong's Hang Seng index rose 0.60 percent to finish at 28,480.

Japanese shares recovered from sharp losses in the previous session after the dollar hit a six-month high against the yen on the back of strong producer price inflation data released overnight.

The Nikkei average rallied 255.75 points or 1.17 percent to 22,187.96, while the broader Topix index closed 0.46 percent higher at 1,709.68.

Electronics maker Sony rose 0.9 percent, automaker Honda Motor gained 0.7 percent and Toyota Motor added 1.4 percent. Market heavyweight Fast Retailing jumped 3.8 percent.

Mobile carrier SoftBank soared as much as 6.4 percent after U.S. investment fund Tiger Global acquired a stake of more than $1 billion in the company.

Australian shares rallied as investors brushed aside trade war fears. The benchmark S&P/ASX 200 index rose steadily to end the session up by 52.70 points or 0.85 percent at 6,268.30 while the broader All Ordinaries index climbed 49.60 points or 0.79 percent to 6,349.80.

The big four banks jumped between 1.6 percent and 2.2 percent after the sector watchdog said there is no evidence of a mortgage credit crunch. Healthcare stocks also gained ground, with CSL rising 2.6 percent and Cochlear adding 1.3 percent.

A plunge in base metal prices weighed on miners, with heavyweights BHP Billiton and Rio Tinto ending down 0.6 percent and 0.3 percent, respectively. Woodside Petroleum shed 0.9 percent and Origin Energy tumbled over 3 percent after oil prices fell 5 percent overnight on supply worries.

On the data front, Australia's inflationary expectations declined in July, survey data from the Melbourne Institute showed. The expected inflation rate fell by 0.3 percentage points to 3.9 percent from 4.2 percent in June.

Seoul stocks eked out modest gains after the Bank of Korea held its base rate steady, as widely expected, but downgraded its growth outlook to 2.9 percent for this year from 3.0 percent previously. The benchmark Kospi inched up 4.44 points or 0.19 percent to 2,285.06.

Automaker Hyundai Motor rose 1.2 percent and its affiliate Kia Motors advanced 1.5 percent. Tech stocks came under selling pressure, with Samsung Electronics and SK Hynix ending down over 1 percent each.

New Zealand's benchmark S&P/NZX 50 index slid 15.92 points or 0.18 percent to close at more than a one-week low of 8,985.47. A2 Milk lost 3.5 percent despite the dairy firm posting a 68 percent jump in full-year revenue and lifting annual guidance.

Malaysia's KLSE Composite index was moving up 0.8 percent. Malaysia's industrial production advanced 3.0 percent year-over-year in May, slower than the 4.6 percent rise in April, a government report showed today, matching expectations.

India's Sensex was rising over 1 percent to reach fresh record highs as an overnight plunge in oil prices helped ease worries about rising inflation and higher twin deficits. Benchmark indexes in Indonesia, Singapore and Taiwan were up between 0.2 percent and 0.6 percent.

Overnight, U.S. stocks fell to snap a four-session winning streak as oil prices plunged and the Trump administration's latest round of tariffs on Chinese goods rekindled fears of a full-blown trade war.

The Dow dropped 0.9 percent, the tech-heavy Nasdaq Composite shed 0.6 percent and the S&P 500 slid 0.7 percent.

by RTTNews Staff Writer

For comments and feedback:

Market Analysis