Asian markets rally after the US delays some tariffs on China
Asian stocks rallied Wednesday after the United States decided to postpone some tariffs on Chinese goods, fueling hopes for a trade deal between the two countries.
Hong Kong’s Hang Seng Index gained 0.5%, with tech stocks leading the way. Tencent advanced 2.7% ahead of its quarterly results, which will be released later in the day. AAC Technologies and Sunny Optical Technology jumped 1.5% and 9.8%, respectively. Both are suppliers of Huawei, the Chinese tech company that has become a flashpoint in the trade war.
China’s Shanghai Composite Index advanced 1%.
Japan’s Nikkei 225 rose 0.9%. South Korea’s Kospi gained 1.2%. Australia’s S&P/ASX 200 added 0.1%.
The Chinese yuan also rallied on the onshore market, after China’s central bank guided the currency higher for the first time in more than a week.
The yuan gained 0.3% from Tuesday’s levels, trading at around 7.04 per US dollar in mainland China.
But in the offshore market, where the yuan moves more freely, it traded weaker than it did Tuesday -— at around 7.03 yuan per dollar.
Here are some other big moves at 10:30 a.m. Hong Kong time:
- Stocks for airport operators in southern China soared after Hong Kong’s mass protests hit the city’s airport and disrupted flights for a second day Tuesday. Airports near Hong Kong are expected to benefit from the disruption in the city, CITIC Securities analysts wrote in a research report. Shenzhen Airport jumped 2.4%, following a 10% gain Tuesday.
- Cathay Pacific Group rebounded more than 3.6% in early trading in Hong Kong. The airline carrier’s stock has been heavily hit by the mass protests.
- Stocks in Asia took a positive lead from Wall Street. US markets soared Tuesday. The Dow rose about 373 points, or 1.4%. The S&P 500 and Nasdaq gained 1.5% and 2% respectively.