Asian markets rose Friday as trade hopes were given a boost by Donald Trump’s economic aide saying “enormous progress” had been made in talks with China, easing recent concerns that they were stumbling.
Hong Kong enjoyed a much-needed leg-up after a bruising week but sentiment remained fragile after the city endured another night of violent protest, with the transport network partially shut down and many businesses closed for a fifth day.
The broad regional gains came after top White House adviser Larry Kudlow that the long-awaited mini trade deal with China was on track as part of a wider pact.
Oil prices were also given a lift by the trade optimism, which offset data showing another pick-up in US stockpiles
“The deal is not complete but we’ve made enormous progress,” he told reporters, adding that the talks were “coming down to the short strokes”.
His comments follow a week of unease about the much-vaunted talks, after Trump dismissed Chinese claims of a plan to roll back tariffs as the negotiations progress, while reports said Beijing was uneasy about some aspects of the developing deal.
And on Thursday, China’s commerce ministry had said the US lifting of tariffs was a “condition” to reaching the preliminary deal — suggesting it was not imminent.
Read more: Asian markets boosted by fresh China-US trade hopes
Xi’s Hong Kong warning
“Maybe, just maybe, we are finally nearing a long-awaited indication from President Trump that the protracted period of market adversity is mercifully nearing its end,” said AxiTrader chief Asia market strategist Stephen Innes.
But he added that “the big question should be about what comes next. How long will phase two take?”
He also pointed to “some recriminations, with the US claiming that China is delaying the deal, which would seem to play into the view that President Trump is under pressure, having effectively announced a deal a couple of weeks ago”.
His comments follow a week of unease about the much-vaunted talks, after Trump dismissed Chinese claims of a plan to roll back tariffs as the negotiations progress
Tokyo went into the break 0.7 percent higher, Sydney jumped 0.8 percent, Seoul climbed one percent and Singapore was up 0.1 percent. Taipei, Wellington and Jakarta also posted healthy gains. Shanghai was up 0.4 percent, boosted by the central bank’s decision to pump $29 billion into the financial system.
Hong Kong added 0.4 percent in early trade, having shed almost five percent over the previous four days as the city was wracked by violent protests, with police saying the rule of law was on “the brink of total collapse”.
Read more: China-US trade war heats up: 3 reasons it won’t cool down anytime soon
The increasingly violent standoff has also fanned concerns about possible intervention by Beijing, with Xi Jinping warning Thursday that Hong Kong’s cherished “one country, two systems” principle was being threatened by the protests, which are in their sixth month.
Oil prices were also given a lift by the trade optimism, which offset data showing another pick-up in US stockpiles
Key figures around 0300 GMT
Tokyo – Nikkei 225: UP 0.7 percent at 23,305.71 (break)
Hong Kong – Hang Seng: UP 0.4 percent at 26,438.63
Shanghai – Composite: UP 0.3 percent at 2,917.42
Pound/dollar: UP at $1.2885 from $1.2881 at 2200 GMT
Euro/pound: UP at 85.57 pence from at 85.55 pence
Euro/dollar: UP at $1.1025 from $1.1020
Dollar/yen: UP at 108.58 yen from 108.42 yen
West Texas Intermediate: UP 26 cents at $57.03 per barrel
Brent North Sea crude: UP 22 cents at $62.50 per barrel
New York – Dow: FLAT at 27,781.96 (close)
London – FTSE 100: DOWN 0.8 percent at 7,292.76 (close)
AFP with additional input by GVS News Desk.