Asian stocks on Friday rebounded as Japanese equities advanced, shaking off a decline following a US missile strike on Syria.
“The missile attack had a short-term impact for trading in Asia and it’s normalizing this afternoon,” Hong-Kong Asia Frontier Capital Ltd chief executive officer Thomas Hugger said. “The more important event today and tomorrow is the visit between [Chinese President Xi Jinping (習近平)] and [US] President [Donald] Trump where a lot of Asian-related items are on the agenda and the outcome will be very important for Asia,” he said.
The missile strike marked a stark reversal for Trump, who during his presidential campaign faulted past US presidents for getting embroiled in Middle East conflicts.
The first such strike under Trump targeted hangars, planes and fuel tanks at a Syrian military airfield, a US official said.
In Taipei, the weighted index on the Taiwan Stock Exchange closed down 24.43 points, or 0.25 percent, at 9,873.37. The index gained 0.6 percent from last week’s 9,811.52.
In Hong Kong, the benchmark Hang Seng index and the Hong Kong China Enterprises Index pared earlier losses and were roughly flat at 24,267.30 and 10,273.80, respectively.
For the week, the Hang Seng gained 0.6 percent.
Sentiment in Hong Kong was already soft as investors awaited the outcome of Trump’s talks with Xi, expected to cover North Korea and China’s big trade surplus with the US.
First Shanghai Securities Ltd (第一上海證券) strategist Linus Yip (葉尚志) said the missile attack on Syria was the main reason for Friday’s sluggishness in Hong Kong.
Yip said sentiment would get a boost if Trump softens his tough stance on China, which he has repeatedly blamed for stealing US jobs and dumping exports by cheapening its yuan currency.
In Japan, the TOPIX on Friday gained 0.7 percent while the Nikkei 225 added 0.4 percent.
Australia’s S&P/ASX 200 Index slid 0.1 percent and New Zealand’s S&P/NZX 50 Index lost 0.6 percent.
South Korea’s KOSPI, FTSE Bursa Malaysia KLCI and Singapore’s Straits Times Index all lost 0.1 percent.
Philippine Stock Exchange PSEI added 0.2 percent.
The Jakarta Composite Index lost 0.5 percent and India’s SENSEX retreated 0.3 percent.
Additional reporting by CNA and Reuters
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