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© Reuters. FILE PHOTO: Tokyo Stock Exchange Employees Work on Tokyo Stock Exchange
By Shinichi Saoshiro
TOKYO (Reuters) – Asian stocks rallied after a three-and-a-half-month low on Wednesday, as US President Donald Trump's speeches eased slightly, easing concerns over a tense tariff war between the two countries. United States and China, and expectations that Beijing could unveil more economic stimulus.
In Europe, the pan-region grew by 0.24% at the beginning of the trade, Germany by 0.25% and the futures contracts by 0.3%.
Shares in Asia were dominated by sharp rises in Chinese equities, which rebounded after two days of losses.
"Chinese equities are rebounding, as they have been overexploited in recent sessions.The sentiment is better because President Trump seems to want a compromise," said Kota Hirayama, chief emerging markets economist at SMBC Nikko Securities in Tokyo.
The largest MSCI index of Asia Pacific shares out of Japan gained 0.6%. The index had fallen to its lowest level since the end of January the day before the intensification of the Sino-US trade conflict. Beijing on Monday imposed a tariff increase on US products following Washington's decision to increase taxes on imports from China.
However, Trump said on Tuesday that he had had a "very good" dialogue with China and insisted that talks between the world's two largest economies had not collapsed. Wall Street shares were able to bounce back overnight as a result of Trump's comments. ()
The 1.4% advance has overshadowed concerns about economic growth following China's weaker-than-expected Chinese data release on Wednesday.
China on Wednesday announced surprisingly weaker growth in retail sales and industrial production for the month of April, thus increasing pressure on Beijing to intensify its stimulus package as the trade war intensifies. with the United States intensifies.
"The latest data shows that the Chinese economy still needs stimulus.The stock markets could support its recovery if the government indicated that it would continue to support the economy," said Hirayama of SMBC Nikko Securities.
Australian equities rose 0.8%, South Korea 0.6% and Japan 0.5%.
The offshore trade turnover with the US dollar was firmer, at 6.9028 for a dollar, after being sidelined from the five-month low set at 6.9200 on Tuesday.
The dollar remained stable at 109.650 yen, after slumping Monday from its lowest level in three months, to 109.020, when concerns over the trade war boosted investor demand for the Japanese currency, a safe haven. .
The euro remained unchanged at 1.1207 dollar. The common currency had fallen nearly 0.2% the day before the Italian Deputy Prime Minister said that his country was ready to break the EU's budget rules on debt levels if necessary. to stimulate employment.
The basket against six major currencies was almost stable at 97.524 after rising 0.2% the day before.
The Australian dollar hit its all-time low in four and a half months at $ 0.6922 after Wednesday's data showed that domestic wage growth stagnated in the first quarter, calling for a reduction in foreign exchange rates. interest. The disappointing Chinese economic indicators also weighed on the market, which is seen as an approximation of China-related transactions.
In commodities, futures contracts fell 0.76% to $ 61.31 per barrel after the American Petroleum Institute (API) announced a larger-than-expected increase in crude oil inventories . [O/R]
US crude inventories rose 8.6 million barrels over the week to 477.8 million barrels on May 10, while analysts forecast a decrease of 800,000 barrels.
lost 0.45% to $ 70.92 a barrel.
Futures contracts for US and US crude jumped a day earlier after Saudi Arabia, the biggest exporter, announced that explosive-laden drones launched by a Yemeni-aligned armed movement on Iran had attacked facilities owned by Iran. to the national oil company Aramco.
Chart: Asian Stock Exchanges – https://tmsnrt.rs/2zpUAr4
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