Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Asia stocks rebound from 3-1/2-mth lows as trade fears ease

Published 2019-05-15, 01:30 a/m
Updated 2019-05-15, 01:40 a/m
© Reuters.  Asia stocks rebound from 3-1/2-mth lows as trade fears ease

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

* MSCI Asia-Pacific index up 0.6%, Nikkei rises 0.5%

* European stock futures modestly higher in early trade

* Stocks up as U.S. President Trump softens trade rhetoric

* China industrial output, retail sales fall short of forecasts

* Oil surge stalls on bigger-than-expected U.S. inventory build

By Shinichi Saoshiro

TOKYO, May 15 (Reuters) - Asian stocks rebounded from a 3-1/2-month low on Wednesday as a slight softening in rhetoric from U.S. President Donald Trump eased worries about the U.S.-China tariff war, and on expectations that Beijing could unveil more economic stimulus.

In Europe, the pan-region Euro Stoxx 50 futures STXEc1 rose 0.24% in early trade, Germany's DAX futures FDXc1 gained 0.25% and FTSE futures FFIc1 were up 0.3%.

Shares in Asia were led by strong gains in Chinese equities, which rebounded after two days of losses.

"Chinese stocks are mounting a rebound as they had been oversold in recent sessions. Sentiment is also better as President Trump seems to be desiring a compromise," said Kota Hirayama, senior emerging markets economist at SMBC Nikko Securities in Tokyo.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 0.6%. The index had fallen to its lowest level since the end of January the previous day as the Sino-U.S. trade conflict intensified. Beijing on Monday imposed a tariff hike on U.S. goods following Washington's decision last week to hike its levies on Chinese imports.

However, Trump on Tuesday said he had a "very good" dialogue with China and insisted talks between the world's two largest economies had not collapsed. Wall Street shares were able to bounce overnight in wake of Trump's comments. .N

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The Shanghai Composite Index .SSEC advanced 1.4%, shrugging off concerns about economic growth following weaker-than-expected Chinese data released on Wednesday.

China on Wednesday reported surprisingly weaker growth in retail sales and industrial output for April, adding pressure on Beijing to roll out more stimulus as the trade war with the United States escalates. latest data shows that the Chinese economy still needs stimulus. Its stock markets could sustain its recovery if the government indicates it will continue to keep supporting the economy," Hirayama at SMBC Nikko Securities said.

Australian stocks .AXJO added 0.8%, South Korea's KOSPI .KS11 gained 0.6% and Japan's Nikkei .N225 climbed 0.5%.

The Chinese yuan was a shade firmer at 6.9028 per dollar in offshore trade CNH=D4 , having edged away from a five-month trough of 6.9200 set on Tuesday.

The dollar was steady at 109.650 yen JPY= , having pulled away from a three-month low of 109.020 plumbed on Monday when trade war worries boosted investor demand for the safe-haven Japanese currency.

The euro was unchanged at $1.1207 EUR= . The common currency had dipped nearly 0.2% the previous day after Italy's deputy prime minister said the country is ready to break European Union budget rules on debt levels if necessary to spur employment. dollar index against a basket of six major currencies was nearly flat at 97.524 .DXY after gaining 0.2% the previous day.

The Australian dollar AUD=D4 brushed a 4-1/2-month low of $0.6922 after Wednesday's data showed domestic wage growth stalling in the first quarter, adding to the case for an interest rate cut. The underwhelming Chinese economic indicators also weighed on the Aussie, which is seen as a proxy of China-related trades. commodities, U.S. crude futures were down 0.76% at $61.31 per barrel CLc1 after the American Petroleum Institute (API) reported a bigger-than-expected build in crude oil inventory. O/R

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

U.S. crude inventories rose by 8.6 million barrels in the week to May 10 to 477.8 million, compared with analysts' expectations for a decrease of 800,000 barrels. crude LCOc1 lost 0.45% to $70.92 per barrel.

Brent and U.S. crude futures had surged the previous day after top exporter Saudi Arabia said explosive-laden drones launched by a Yemeni-armed movement aligned to Iran had attacked facilities belonging to state oil company Aramco.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.