Asia stocks bounce from three-and-a-half month lows as trade fears soften By Reuters

© Reuters. FILE PHOTO: Employees of the Tokyo Stock Exchange work at the bourse in Tokyo

By Shinichi Saoshiro

TOKYO (Reuters) – Asian stocks bounced from a 3-1/2-month low on Wednesday as a slight softening in rhetoric from U.S. President Donald Trump helped ease worries about the U.S.-China tariff war and on expectations Beijing could release more economic stimulus.

Shares in Asia were led by strong gains in Chinese equities, which rebounded after two days of losses.

„Chinese stocks are mounting a rebound as they had been oversold in recent sessions. Sentiment is also better as President Trump seems to be desiring a compromise,“ said Kota Hirayama, senior emerging markets economist at SMBC Nikko Securities in Tokyo.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.5%. The index had fallen to its lowest level since the end of January the previous day as the Sino-U.S. trade conflict intensified. Beijing on Monday imposed a tariff hike on U.S. goods following Washington’s decision last week to hike its levies on Chinese imports.

However, Trump on Tuesday said he had a „very good“ dialogue with China and insisted talks between the world’s two largest economies had not collapsed. Wall Street shares were able to bounce overnight in wake of Trump’s comments. ()

The advanced 1%, shrugging off concerns about economic growth following weaker-than-expected Chinese data released on Wednesday.

Growth in China’s industrial output slowed in April from a 4-1/2 year high in March, while the increase in retail sales missed forecasts.

„The latest data shows that the Chinese economy still needs stimulus. Its stock markets could sustain its recovery if the government indicates it will continue to keep supporting the economy,“ Hirayama at SMBC Nikko Securities said.

Australian stocks added 0.6%, South Korea’s gained 0.7% and Japan’s dipped 0.1%.

The was a shade firmer at 6.9005 per dollar in offshore trade, having edged away from a five-month trough of 6.9200 set on Tuesday.

The dollar was steady at 109.615 yen, having pulled away from a three-month low of 109.020 plumbed on Monday when trade war worries boosted investor demand for the safe-haven Japanese currency.

The euro was unchanged at $1.1204. The common currency had dipped nearly 0.2% the previous day after Italy’s deputy prime minister said the country is ready to break European Union budget rules on debt levels if necessary to spur employment.

The against a basket of six major currencies was nearly flat at 97.530 after gaining 0.2% the previous day.

In commodities, futures were down 0.55% at $61.44 per barrel after the American Petroleum Institute (API) reported a bigger-than-expected build in crude oil inventory. [O/R]

U.S. crude inventories rose by 8.6 million barrels in the week to May 10 to 477.8 million, compared with analysts‘ expectations for a decrease of 800,000 barrels.

lost 0.18% to $71.11 per barrel.

Brent and U.S. crude futures had surged the previous day after top exporter Saudi Arabia said explosive-laden drones launched by a Yemeni-armed movement aligned to Iran had attacked facilities belonging to state oil company Aramco.

GRAPHIC: Asian stock markets – https://tmsnrt.rs/2zpUAr4

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Hinterlasse jetzt einen Kommentar

Kommentar hinterlassen

E-Mail Adresse wird nicht veröffentlicht.


*