Asian stocks advanced broadly on Wednesday, buoyed by continued optimism around potential interest rate cuts by the US Federal Reserve and renewed hopes of progress in Sino-American trade relations.
The gains came even as Wall Street retreated overnight, giving back a portion of the previous session’s strong rally.
China, Hong Kong markets
In China, the Shanghai Composite Index rose 0.45 percent to close at 3,633.99, supported by expectations of a possible trade agreement between the US and China.
US President Donald Trump said the two countries were “getting along very well” and indicated he would meet Chinese President Xi Jinping by the end of the year if a deal is reached.
Hong Kong stocks ended marginally higher, as investors awaited a raft of Chinese economic data and corporate earnings due later in the week.
The Hang Seng Index edged up less than 0.1 percent to 24,910.63, while the Hang Seng Tech Index added 0.2 percent.
In terms of individual stocks, BYD Electronic International rallied 6.7 percent to HK$37.80, while China Shenhua Energy rose 3 percent to HK$36.54. Tencent Holdings climbed 1.7 percent to HK$568.50.
However, electric vehicle stocks were under pressure. Li Auto dropped 5.4 percent to HK$97.30, and BYD Co. slipped 0.5 percent to HK$111.60 amid renewed concerns about intensifying price competition in the EV sector.
With the Hang Seng Index already up 24 percent this year, investors appear to be searching for fresh catalysts, as the earlier tailwinds from easing US-China tensions and stronger-than-expected Chinese growth have largely been priced in.
Japanese shares extend gains
Japanese markets built on Tuesday’s rebound, reversing some of the losses sustained during a sharp sell-off earlier in the week.
The Nikkei 225 gained 0.60 percent to close at 40,794.86, while the broader Topix index advanced 1.02 percent to 2,966.57.
Export-oriented stocks provided support, with Sony Group and Toyota Motor both rising around 2 percent.
Property developer Mitsui Fudosan surged 5.9 percent following strong earnings for the first quarter.
Mitsubishi Heavy Industries also extended gains, rising 4.8 percent after its successful bid for a major Australian defense contract to build next-generation warships.
Other regional markets
Australian equities climbed to fresh record highs on Wednesday, lifted by optimism surrounding potential rate cuts from both the Reserve Bank of Australia and the US Federal Reserve.
The benchmark S&P/ASX 200 index rose 0.84 percent to 8,843.70, while the broader All Ordinaries Index gained 0.91 percent to 9,111.10. Banks and mining companies led the advance.
Indian equity benchmarks ended lower for a second consecutive session on August 6, weighed down by losses in select index heavyweights.
The Nifty slipped below the 24,600 mark, while the Sensex also finished in the red, as market breadth remained firmly negative.
At the close, the Sensex fell 166.26 points, or 0.21 percent, to end at 80,543.99. The Nifty declined 75.35 points, or 0.31 percent, to settle at 24,574.20.
Wall Street on Tuesday
US stocks gave back ground on Tuesday, with major indices pulling back after a strong start to the week.
After initially extending Monday’s rally during early trading, sentiment turned cautious through the session.
The Nasdaq Composite fell 137.03 points or 0.7 percent to 20,916.55, the S&P 500 declined 30.75 points or 0.5 percent to 6,299.19, and the Dow Jones Industrial Average edged lower by 61.90 points or 0.1 percent to 44,111.74.
Despite the dip, broader market sentiment in Asia remained resilient on Wednesday, driven by central bank expectations and tentative signs of improving US-China relations.
The post Asian stocks end mostly higher: Nikkei climbs 0.6%, CSI 300 jumps 0.24% appeared first on Invezz