Asian stocks boosted up by US equity market

Asian stocks boosted up by US equity market

WASHINGTON: Asian stocks climbed early this morning after U.S. equities posted a third day of gains, with investors for now looking through the flare-up in the U.S.-China trade war, which has left the yuan at its weakest in five months.

Japanese equities rose along with those in South Korea and Australia. The S&P 500 climbed 0.9% Thursday as solid earnings and strong housing data buoyed shares. The 10-year Treasury yield was back at 2.39% after testing 2019 lows earlier this week.

Weakness is enduring for China’s offshore yuan amid the trade stand-off, with the currency down for a second week. In most recent developments, the Trump administration threatened to blacklist China’s Huawei Technologies Co. and Walmart Inc. warned tariffs would lead to higher consumer prices.

Data supporting the robustness of U.S. companies and the economy, along with hints from the Trump administration that it may be willing to compromise on trade, helped stocks bounce back from the battering they took when the tariff battle with China flared last week.

But the headlines have kept traders on tenterhooks, most recently with U.S. President Donald Trump signing an order that’s expected to restrict Chinese telecommunications firms from selling in the U.S.

Elsewhere, the pound remained under pressure as U.K. Prime Minister Theresa May faced a new threat to oust her.

Here are the main market moves:


Japan’s Topix index rose 0.6% as of 9:07 a.m. in Tokyo. South Korea’s Kospi index gained 0.3%. Hang Seng futures earlier added 0.6%. Australia’s S&P/ASX 200 Index advanced 0.6%. Futures on the S&P 500 Index were little changed. The underlying gauge rose 0.9% Thursday.


The yen was at 109.83 per dollar. The offshore yuan was at 6.9310 after dropping 0.4%. The euro held at $1.1174, little changed. The British pound bought $1.2794 after a 0.4% decline. The Bloomberg Dollar Spot Index added 0.1%.


The yield on 10-year Treasuries held at 2.39%, still down about eight basis points on the week. Australia’s 10-year bond yield remained at 1.64%.


West Texas Intermediate crude increased 0.4% to $63.09 a barrel. Gold fell less than 0.1% to $1,286.48 an ounce.


Tags assigned to this article:
Asian marketsUS equity marketUS-China trade war