Nikkei, Hang Seng tick up following central-bank moves
Asian markets advanced in early trading Friday following reassuring moves by central banks and as trade negotiations resumed between the U.S. and China.
Mid-level talks were held in Washington on Thursday for the first time in almost two months as U.S. and Chinese negotiators attempted to find common ground to pave the way for high-level talks scheduled for October. Reuters reported that the talks, which will end Friday, will focus mainly on agricultural issues, with sessions also scheduled for intellectual property and forced transfer of technology.
But White House adviser Michael Pillsbury, in an interview with the South China Morning Post, warned that if a trade deal is not reached soon, the U.S. could escalate its tariffs on Chinese goods to 50% or even 100%.
Meanwhile, the People’s Bank of China cut its one-year loan prime rate from 4.25% to 4.20%, as expected. That came after the U.S. Federal Reserve on Wednesday cut interest rates for the second time this summer, and the Bank of Japan kept its monetary policy unchanged, though it hinted at further easing later in the year.
Japan’s Nikkei NIK, +0.37% rose 0.4% and Hong Kong’s Hang Seng Index HSI, +0.03% advanced 0.2%. The Shanghai Composite SHCOMP, +0.17% inched up 0.1% while the Shenzhen Composite 399106, +0.09% gained 0.3%. South Korea’s Kospi 180721, +0.38% ticked up 0.2%, while benchmark indexes in Taiwan Y9999, +0.18% , Singapore STI, +0.05% and Indonesia JAKIDX, -0.41% were little changed. Australia’s S&P/ASX 200 XJO, +0.58% rose 0.6%.
Among individual stocks, e-commerce company Rakuten 4755, +3.54% gained in Tokyo trading, along with SoftBank 9984, +1.32% and Casio 6952, +2.25% . In Hong Kong, New World Development 17, +1.59% and Sunny Optical 2382, -0.17% rose, while AAC 2018, -2.66% fell. Kia Motors 000270, +1.03% advanced in South Korea and Foxconn 2354, +1.54% rose in Taiwan. Fortescue Metals FMG, -1.55% slid in Australia, while Woolworths WOW, +1.06% gained.