Asia report: Markets strengthen on back of Xi remarks

Markets in Asia were higher on Tuesday, with investors reacting positively to comments from Chinese president Xi Jinping, who outlined plans to open up the Chinese economy even further.

In Japan, the Nikkei 225 was up 0.54% at 21,794.32, as the yen weakened 0.23% against the dollar to last trade at JPY 107.02.

The iron and steel sector and the automotive subindex were the best performers on the broader Topix, rising 2.04% and 1.42% respectively.

On the mainland, the Shanghai Composite was 1.67% higher at 3,190.65, as the smaller, technology-heavy Shenzhen Composite strengthened 0.51% to 1,841.22.

South Korea’s Kospi added 0.27% to 2,450.74, while the Hang Seng Index in Hong Kong moved ahead 1.65% to 30,728.74.

Investors, who had been nervous about the prospect of a trade war, were calmed by Xi’s speech, which reduced fears of such an economic conflict escalating.

The remarks from Xi came after US president Donald Trump had told his trade officials last week to consider another $100bn in tariffs on Chinese imports.

That announcement itself followed one from Beijing last Wednesday, in which Chinese officials said they would introduce extra tariffs on 106 US products.

Oil prices were sharply higher as the region went to bed, with Brent crude last up 2.08% at $70.11 per barrel and West Texas Intermediate adding 2.1% to $64.78.

In Australia, the S&P/ASX 200 was up 0.83% at 5,857.00, with the energy, financials and materials subindices all adding more than 1% by end-of-play.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.2% at 8,469.77, led higher by church donation technology firm Pushpay, which was ahead 2.4%.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.52% at AUD 1.2923, and the Kiwi advancing 0.66% to NZD 1.3596.