Asian shares rose Tuesday as news that the U.S. and China are open to negotiating to avert a trade war put investors in a buying mood, setting off a rebound on Wall Street.
KEEPING SCORE: Japan’s benchmark Nikkei 225 added 1.7 percent in morning trading to 21,110.68. A weaker yen also boosted sentiment. Australia’s S&P/ASX 200 added nearly 0.7 percent to 5,828.90. South Korea’s Kospi edged up 0.5 percent to 2,448.42. Hong Kong’s Hang Seng added 0.9 percent to 30,826.59, while the Shanghai Composite index rose 0.9 percent to 3,161.97.
WALL STREET: The U.S. market rebounded from its worst week in two years. The Standard & Poor’s 500 index advanced 2.7 percent to 2,658.55. The Dow Jones industrial average gained 2.8 percent to 24,202.60 after losing more than 1,400 points last week. The Nasdaq added 3.3 percent to 7,220.54, while the Russell 2000 index of smaller-company stocks picked up 2.2 percent, to 1,543.72.
CHINA FACTOR: The fears of worsening trade tensions eased after China’s government said it is open to negotiating with Washington. That announcement followed a news report indicating that U.S. officials have submitted a list of market-opening requests.
THE QUOTE: “While we caution that markets appeared to be lurching toward the ‘hopeful’ end of ‘cautiously hopeful,’ we sympathize with the ‘half-full’ gambits emerging,” says Vishnu Varathan of Mizuho Bank in Singapore of the reaction to the possible U.S.-China trade talks leading to easing tensions.
ENERGY: Benchmark U.S. crude added 17 cents to $65.72 a barrel in electronic trading on the New York Mercantile Exchange. It fell 33 cents to $65.55 per barrel on Monday. Brent crude, used to price international oils, gained 12 cents to $69.64.
CURRENCIES: The dollar rose to 105.64 yen from 105.41 yen late Monday. The euro strengthened to $1.2453 from $1.2448.