Chinese stocks rise on hopes for US trade progress

nullFILE- In this Jan. 11, 2019, file photo, trader Joseph Lawler, left, and specialist Mark Otto work on the floor of the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EST on Thursday, Jan. 17. (AP Photo/Richard Drew, File)

Chinese stocks rise on hopes for progress in settling tariff war with Beijing

BEIJING — Chinese stocks rose Friday on signs of possible progress in negotiations over Beijing's tariff war with Washington.

KEEPING SCORE: The Shanghai Composite Index advanced 0.8 percent to 2,579.76 and Hong Kong's Hang Seng gained 1 percent to 27,013.20. Tokyo's Nikkei 225 added 1.2 percent to 20,655.08 and Seoul's Kospi advanced 0.5 percent to 2,118.18. Sydney's S&P-ASX 200 was 0.4 percent higher at 5,876.80 while India's Sensex shed 0.1 percent to 36,331.84. Benchmarks in Taiwan, New Zealand and Southeast Asia also rose.

US-CHINA TRADE: China announced its economy czar, Vice Premier Liu He, will go to Washington for talks Jan. 30-31 aimed at ending the tariff war sparked by U.S. complaints about Beijing's technology ambitions. Business groups and economists were looking for Liu and his American counterpart, U.S. Trade Representative Robert Lighthizer, to take part in talks as a sign lower-level negotiations earlier in Beijing made progress. The Wall Street Journal reported Treasury Secretary Steven Mnuchin was willing to roll back U.S. tariff hikes on Chinese goods, though it said Lighthizer and other officials opposed that.

WALL STREET: Stocks climbed on trade optimism following the report Mnuchin might support a cut in U.S. penalty duties on Chinese imports. Technology, industrial and health care companies gained and makers of chemicals and other basic materials jumped. The Standard & Poor's 500 index rose 0.8 percent to 2,635.96. The Dow Jones Industrial Average added 0.7 percent at 24,370.10. The Nasdaq composite gained 0.7 percent to 7,084.46.

ANALYST'S COMMENT: Asian markets welcome "the latest indication of further interest from the U.S. to resolve the U.S.-China trade uncertainty," said Jingyi Pan of IG in a report. "While skepticism may well persist, and worries build ahead of Chinese growth figures next week, the driving force for intraday market action belongs to trade."

JAPAN INFLATION: Inflation in December came in weaker than expected, temporarily putting the central bank farther from its target of 2 percent. Prices rose 0.3 percent, down from November's 0.8 percent, as tumbling food costs offset a rise in energy prices.

ENERGY: Benchmark U.S. crude 53 cents to $52.60 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 24 cents on Thursday to close at $52.07. Brent crude, used to price international oils, added 50 cents to $61.68 per barrel in London. It lost 14 cents the previous session to $61.18.

CURRENCY: The dollar advanced to 109.33 yen from Thursday's 109.24 yen. The euro gained to $1.1393 from $1.1388.

You may also like these

China's electric vehicle industry shaken by...

Sep 13, 2016

China's electric vehicle industry, a flagship for Beijing's technology ambitions, has been rocked...

Asian markets lower after Wall Street decline

Sep 15, 2016

Asian stock markets were mostly lower Thursday following Wall Street's decline in light trading...

China begins to ease its 2,000-year-old monopoly...

Jan 3, 2017

China has started an overhaul of its salt industry, easing a monopoly that has existed in some form...

DEA opens shop in China to help fight synthetic...

Jan 6, 2017

The U.S. Drug Enforcement Administration plans to open a new office in southern China and, at...

'One China principle' not negotiable, China tells...

Jan 16, 2017

Responding to remarks by Donald Trump, China's Foreign Ministry says the country's "one-China...

Sign up now!

The Financial Capital is your independent source for finance information and advice. We provide insights and offer advice from financial experts so you can make the best decisions.

Contact us: sales[at]thefinancialcapital.com