Asian markets rose on Friday, tracking a rally on Wall Street where investors were buoyed by the US Federal Reserve’s positive outlook for the US economy, and oil added to gains with predictions it could be headed back to US$100.
While concerns over the China-US trade row hang in the air, equities continue to be supported by optimism that the global economy and companies are in rude health.
That was reinforced by the Fed on Wednesday as it lifted interest rates and indicated more to come over the next year citing the strong labor market and playing down concerns about vulnerabilities in the financial system.
“One thing that’s telling is the current price action which sees investors continually coming back for more. That suggests the gushing US economy and not trade wars, continues to influence investors’ decisions,” said Stephen Innes, head of Asia-Pacific trading at Oanda Corp.
Tokyo’s benchmark Nikkei index jumped more than 1.3 percent to a fresh eight-month high on a weak yen, as concerns over US trade pressure on Japan retreated.
The Nikkei 225 index rose 1.36 percent or 323.30 points to close at 24,120.04, approaching a 27-year high. It gained 1.05 percent for the week.
The TOPIX was up 0.95 percent or 17.14 points at 1,817.25. It rose 0.73 percent over the week.
“Concerns over US trade pressure on Japan are easing for now following trade talks in New York, which also supported investors’ sentiment here,” said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.
US President Donald Trump and Japan’s Prime Minister Shinzo Abe on Wednesday announced an agreement to start negotiations on a trade deal, after talks on the sidelines of the UN General Assembly in New York.
Hong Kong’s Hang Seng Index on Friday added 0.3 percent to 27,788.52, down 0.6 percent for the week.
However, property firms were again hit after the territory’s banks on Thursday lifted commercial lending rates for the first time in 12 years following the Fed hike.
The Shanghai Composite on Friday gained 1.1 percent to 2,821.35, an increase of 0.9 percent for the week.
In South Korea, the KOSPI dropped 0.5 percent to 2,343.07, declining 2.3 percent over the week.
Australia’s S&P/ASX 200 Index gained 0.4 percent to 6,207.6, rising 0.2 percent for the week.
Shares in Taiwan edged lower on Friday, but remained above 11,000 points from the previous session supported by small and medium stocks.
The weighted index on the Taiwan Stock Exchange closed down 27.85 points, or 0.25 percent, at 11,006.34, with turnover totaling NT$137 billion (US$4.49 billion).
The TAIEX rose 0.3 percent from last week’s 10,972.41 points.
The TAIEX’s eight major stock categories reported a mixture of gains and losses: cement stocks rose 1.66 percent, food shares rose 0.2 percent, plastics and chemicals rose 0.01 percent, while textiles fell 0.74 percent.
Electronics and machinery stocks dropped 0.38 percent, paper and pulp fell 1.32 percent, and construction shares rose 0.1 percent, while financial shares closed down 0.13 percent.
Falling stocks outnumbered gainers 486 to 314, with 120 unchanged.
Among the major electronics stocks, contract chip maker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) the most heavily weighted stock on the local market, lost 0.94 percent to end at NT$262.50, while Hon Hai Precision Industry Co (鴻海精密) closed up 0.64 percent at NT$79.20.
Among passive component stocks, shares in Yageo Corp (國巨) shed 1.50 percent to close at NT$459.00, while Holy Stone Enterprise Co (禾伸堂) finished up 3.40 percent to end at NT$137.00.
Additional reporting by staff writer, with CNA
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