Asian shares rise following broad rally for US stocks

Asian shares rose Friday as investors bought back stocks following gains on Wall Street. (File photo: AP)

Asian shares rose Friday as investors bought back stocks following gains on Wall Street, although worries about a trade dispute between the US and China remained.

Japan’s benchmark Nikkei 225 added nearly 0.6 percent in morning trading to 20,706.95.

Australia’s S&P/ASX 200 gained 0.2 percent to 6,577.90. South Korea’s Kospi added nearly 1.0 percent to 1,939.30. Hong Kong’s Hang Seng rose 0.4 percent to 26,216.54, while the Shanghai Composite edged up 0.4 percent to 2,806.54.

Data on Japan’s economy for the April-June period that were better than expected added to the optimism. The Cabinet Office reported Japan’s gross domestic product, or the total value of a nation’s goods and services, grew at a seasonally adjusted annualized rate of 1.8 percent during the three months ended in June, compared to the previous quarter.

Technology companies powered stocks broadly higher on Wall Street Thursday, driving the S&P 500 to its best day in more than two months and erasing its losses for the week.

The rally, which pushed the Dow Jones Industrial Average up by more than 370 points, followed an early rise in bonds yields after a weekly government report on unemployment claims came in better than economists had expected.

The absence of new worrisome turns in the US-China trade tussle may have also helped keep investors in a buying mood.

The S&P 500 index rose 54.11 points, or 1.9 percent, to 2,938.09. The Dow Jones Industrial Average climbed 371.12 points, or 1.4 percent, to 26,378.19. The Nasdaq composite, which is heavily weighted with technology stocks, vaulted 176.33 points, or 2.2 percent, to 8,039.16. It also had its best day in more than two months and was on track to end the week with a gain. The Russell 2000 index picked up 31.45 points, or 2.1 percent, to 1,532.13.

President Donald Trump spooked the markets last week when he threatened to impose 10 percent tariffs on all Chinese imports that haven’t already been hit with tariffs of 25 percent. China retaliated on Monday and allowed its currency, the yuan, to weaken against the US dollar. China stabilized the yuan on Tuesday, helping lift stocks.
 

SHOW MORE
Last Update: 06:54 KSA 09:54 - GMT 06:54
Top