After Trade Comments With China Sooth the Nerves of the Market, Asian Markets Advance

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From Hong Kong Hang Seng Index (HSI) climbed 0.8%, while China Shanghai Composite Index (SHCOMP) increased by 0.5%.

Kospi of South Korea gained 1.7%. Japan's Nikkei also rose 1.1%.

Markets in the region have sunk due to unease caused by the state of trade relations. The President of the United States, Donald Trump, said earlier this week that China had called and relayed his desire to return to the negotiating table, a discussion of which the Chinese Foreign Ministry stated that it was not Was not aware.

The Chinese Minister of Commerce said Thursday that his country is ready to solve trade problems with "a calm attitude". Spokesman Gao Feng added that the two sides continued to speak.

"The most important thing at the moment is to create the necessary conditions for the continuation of negotiations between the two sides," he added.

This positivity, however slight, has soothed the nerves of the United States – a mood that seems to continue in Asia.

"It does not seem like much," said Jeffrey Halley, senior market analyst at Asia Pacific for Oanda. But given the "fragility" of the markets earlier this week, he suggested that investors "would probably have continued streaming for the exit door" without China's comments.

The US-China trade dispute "remains the only game in town" for investors around the world, he added in a research note.

Both countries have announced tariffs that will come into effect on Sunday.

Here are some other discussion points in Asia at 10:30 am Hong Kong time:

  • The Bank of Korea on Friday kept its interest rate unchanged at 1.5%, in line with market expectations. The central bank said it would "closely monitor" the trade war between the United States and China and other economic risks when determining how to make monetary policy decisions at home. to come up.
  • Investors look for Friday data on their income and personal expenses in the United States.
  • ICBC, the world's largest bank in terms of total assets, jumped 2.5% in Hong Kong after posting a 4.7% rise in net profit for the first half. Its Shanghai-listed shares rose 0.2%.

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