Asian Stocks Higher Tuesday 10/22 06:03
Shares were mostly higher in Asia on Tuesday after upbeat comments from
President Donald Trump and other U.S. officials on the status of trade
negotiations with China.
BANGKOK (AP) -- Shares were mostly higher in Asia on Tuesday after upbeat
comments from President Donald Trump and other U.S. officials on the status of
trade negotiations with China.
The Kospi in South Korea led gains, climbing 1.2% to 2,090.77, helped by
gains in technology companies overnight on Wall Street. Australia's S&P ASX 200
added 0.4% to 6,679.20. The Hang Seng in Hong Kong picked up 0.2% to 26,765.75,
while the Shanghai Composite index slipped 0.1% to 2,936.99. India's Sensex
skidded 0.4% to 39,151.05.
Tokyo's markets were closed for a holiday for the enthronement ceremony for
Shares rose in Taiwan, Singapore and Bangkok but fell in Jakarta.
Trump told reporters Monday that he was hoping to sign a trade deal with
China next month at a summit in Chile, "or whenever that might be."
On again, off again talks on resolving a dispute over trade and China's
technology policies have dragged on for over a year, with both sides imposing
billions of dollars' worth of tariffs on each other's goods. The most recent
round, earlier this month in Washington, helped forestall a new round of tariff
hikes on imports from China that would have escalated tensions.
Lower level talks were expected this week, and China's top envoy in charge
of the negotiations, Vice Premier Liu He, said over the weekend that
substantial progress had been made.
Economic adviser Larry Kudlow, said, "I really like what they're saying on
the other side." If current talks go well, he said, Trump might put off
imposing more tariffs planned for December.
"I can't guarantee it, it's completely up to the president," Kudlow told Fox
Commerce Secretary Wilbur Ross was more cautious, saying that the timing was
less important than the contents of any deal.
"It doesn't have to be in November," Ross told Fox. "The key thing is to get
everything right that we do sign."
Analysts were likewise skeptical.
In a commentary, Mizuho Bank said "we think the current wave of trade
optimism may be short-lived."
It noted that negotiations were said to be going well before they collapsed
in May. And talk of a partial deal suggests many issues will remain unresolved.
"Whilst scrapping of the upcoming December tariff is welcomed, this may be
only marginally positive since a substantial degree of damage is already done
from the existing tariffs," it said.
Still, the bullish comments on trade lifted spirits overnight on Wall
Street, where benchmarks extended the gains of the past two weeks.
The S&P 500 closed above 3,000 points for the first time in a month and is
now within 0.7% of its all-time high set on July 26. It gained 0.7% to
3,006.72. The Dow Jones Industrial Average rose 0.2% to 26,827.64. It was
weighed down by a 3.8% drop in Boeing shares, which followed a 6.8% slide on
Congress is ramping up scrutiny of Boeing as its CEO, Dennis Muilenburg, is
scheduled to testify to the House's transportation committee on Oct. 30.
Investors are concerned about the latest revelations surrounding the safety of
its 737 Max airplanes, which have been grounded after two deadly accidents.
The Nasdaq climbed 0.9% to 8,162.99, while the Russell 2000 index of smaller
stocks picked up 1%, to 1,550.14.
As they wait for trade talk developments, investors are watching corporate
earnings reports. Monday was a relatively quiet start to a week full of results
from major companies.
Analysts came into this latest earnings season expecting profits to decline
overall for companies in the S&P 500. But with about 15% of companies in the
index reporting so far, results have been surprisingly positive.
"We remain cautious for the quarter but believe that companies will continue
to chin the low bar they have set and ultimately, we will end the quarter flat
or up low single digits," said Katie Nixon, chief investment officer for
Northern Trust Wealth Management, in a note to investors.
The yield on the 10-year Treasury rose to 1.80% from 1.75% late Friday.
Higher yields allow banks to charge more lucrative interest on mortgages and
other loans. Higher yields are also a sign that investors are more confident.
Energy futures were flat.
Benchmark crude oil fell 14 cents to $53.37 per barrel in electronic trading
on the New York Mercantile Exchange. It lost 36 cents to settle at $53.51 a
barrel on Monday.
Brent crude oil, the international standard, declined 11 cents to $58.85 a
The dollar rose to 108.64 Japanese yen from 108.60 yen on Monday. The euro
strengthened to $1.1154 from $1.1149.