Asian markets surge following Xis pledge to open Chinese markets

Asia-Pacific stocks started sluggishly Tuesday after late-day selling in the U.S. pared gains on Wall Street, but surged following a key speech from Chinese President Xi Jinping.

Speaking at the Boao Forum in Hainan province, Xi vowed to reduce tariffs on auto imports and take steps to open Chinese markets to foreign businesses, easing fears of a trade war between the U.S. and China.

Japans Nikkei Stock Average
NIK, +0.75%
surged 1.08% and Hong Kongs Hang Seng index
HSI, +1.14%
gained about 1% each, while Australias S&P ASX 200
XJO, +0.82%
and New Zealands NZX 50
NZ50GR, +0.13%
rose less than 1%.

After falling 0.7% early, South Koreas Kospi
SEU, +0.22%
gained 0.18%, despite index heavyweight Samsung Electronics
005930, -0.33%
falling 0.57%. LG Chem
051910, -1.86%
shed 1.6%.

The sharp late-session declines in the U.S. were triggered by news that federal investigators searched the office, home and hotel room of President Donald Trumps personal lawyer. The selling pared gains for the Dow Jones Industrial Average
DJIA, +0.19%
to 0.2%.

Market participants have speculated that the Chinese government could use the yuans value as a weapon in a trade war against the U.S., but such a decision would have risks, said Brendan Ahern, chief investment officer at KraneShares.

A devaluation would be a major step backwards and I doubt it can be seriously considered as it goes against all previous rhetoric, he said.

Yields on the U.S. 10-year Treasury note held steady at 2.7808% after the Congressional Budget Office warned that fiscal stimulus would widen the budget deficit by more than previously expected.

Related Topics Asia Markets China Japan Australia Singapore Foreign Investment

Quote References NIK +162.98 +0.75% HSI +344.87 +1.14% XJO +47.80 +0.82% NZ50GR +11.38 +0.13% SEU +5.45 +0.22% 005930 -8,000.00 -0.33% 051910 -7,000.00 -1.86% DJIA +46.34 +0.19% Show all references
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