Asian markets rise higher ahead of Xi-Trump summit
Asia’s markets mostly rose Wednesday but investors moved nervously ahead of a summit between Chinese President Xi Jinping and Donald Trump this week.
The two-day gathering in Florida comes after the US tycoon has hit out at Beijing’s trade policies and labelled it a currency manipulator, fanning fears of a trade war between the world’s top two economies.
There are also geopolitical concerns linked to North Korea’s growing nuclear programme, with Trump warning he would be prepared to sideline Beijing in dealing with the rogue state.
North Korean leader Kim Jong-Un raised tensions by firing another ballistic missile into the Sea of Japan, the latest in a series of launches in recent months on Wednesday.
Also in focus is the release of US jobs figures Friday, which will provide a fresh snapshot of the state of the world’s top economy, as well as minutes from the Federal Reserve’s March policy meeting. A private US jobs reading is due later Wednesday.
Chief market strategist at AxiTrader, Greg McKenna said, “It seems most folks are waiting on the meeting between Presidents Xi and Trump and of course, non-farm payrolls.”
Hong Kong was up 0.2 percent in the afternoon while Shanghai rallied 1.5 percent as investors welcomed a decision to set up a new economic development zone near Beijing.
The news boosted property and construction stocks as it sparked a frenzy among out-of-town home buyers.
The Xiongan New Area a patch of apartments and wetlands in Hebei province has less than one percent of Beijing’s economic output, but was on Saturday unveiled as the future location of a special economic zone similar to those established in Shenzhen and Shanghai.
Home prices in one area surged fivefold, financial magazine Caixin reported, causing officials to put a freeze on property sales.
Tokyo added 0.3 percent, while Sydney rose by a similar amount. Seoul was flat but Taipei and Manila rallied more than one percent.
The gains followed a positive lead from Wall Street after the US Commerce Department said the trade deficit narrowed in February by the most in six months.
But traders have taken a step back from the four-month rally that greeted Trump’s November election victory as they grow increasingly concerned about his ability to push through promised tax cuts and spending that would fire the economy.
In early European trade London rose 0.3 percent, Frankfurt was flat and Paris added 0.1 percent.
– Key figures at 0730 GMT –
Tokyo – Nikkei 225: UP 0.3 percent at 18,861.27 (close)
Hong Kong – Hang Seng: UP 0.2 percent at 24,300.03
Shanghai – Composite: UP 1.5 percent at 3,270.31 (close)
London – FTSE 100: UP 0.3 percent at 7,343.49
Euro/dollar: UP at $1.0690 from $1.0671
Pound/dollar: UP at $1.2445 from $1.2441
Dollar/yen: DOWN at 110.68 yen from 110.74 yen
Oil – West Texas Intermediate: UP 43 cents at $51.46 per barrel
Oil – Brent North Sea: UP 44 cents at $54.61 per barrel
New York – Dow: UP 0.2 percent at 20,689.24 (close)