Asian markets rose Friday, led by China stocks the country took a step to appease U.S. trade negotiators and the country’s premier spoke of more stimulus for the economy.
Chinese legislators on Friday approved a new law against the forced transfer of technology by foreign companies, which has been a major complaint by the U.S. and other countries. The move was intended to smooth the path to a trade deal, but it’s unclear if it will be enough.
President Donald Trump said Wednesday he was in no hurry to make a deal, and said the U.S. could still walk away from negotiations if terms aren’t to his liking. On Thursday, chief economic adviser Larry Kudlow said a summit between Trump and Chinese President Xi Jinping likely won’t happen until after trade negotiations are settled, adding that Xi is “afraid” to sit down with Trump over fears Trump may walk out at the last minute. Kudlow said Xi wants a signing ceremony, not a negotiating session, the Associated Press reported.
Meanwhile, investors relaxed slightly as the threat of global financial chaos receded a bit as British lawmakers approved a measure to seek to push the Brexit deadline back to June.
China shares also rose as Premier Li Keqiang reportedly said on Friday that the government has more monetary policy measures it can use to support growth this year and will cut “its own flesh” to help finance tax cuts.
On mainland China, the Shanghai Composite SHCOMP, +1.04% closed up 1% and the smaller-cap Shenzhen Composite 399106, +1.43% rose 1.4%. Japan’s Nikkei NIK, +0.77% rose 0.8%, while South Korea’s Kospi SEU, +0.95% gained 0.9%. Hong Kong’s Hang Seng index HSI, +0.56% gained 0.6%, Taiwan’s Y9999, +0.88% benchmark index rose 0.9% and Singapore’s STI, +0.07% was flat, along with Australia’s S&P/ASX 200 XJO, -0.07% New Zealand’s NSX 50 NZ50GR, +0.40% rose 0.4%. The small nation was rocked by a mass shooting at a mosque in Christchurch on Friday.
Among individual stocks, Tokyo Electron 8035, +2.80% rose in Tokyo trading, along with Nintendo 7974, +2.68% and Mitsubishi Motors 7211, +0.67% . Sunny Optical 2382, +5.14% surged in Hong Kong, as Galaxy Entertainment 0027, +2.62% and Ping An Insurance 2318, +1.05% advanced as well. SK Hynix 000660, +1.19% rose in Korea, as did fellow chip maker Taiwan Semiconductor 2330, +1.92% in Taiwan. Mining stocks like BHP BHP, -1.83% declined in Australia, while energy stocks mostly gained.
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