ASIA MARKETS: Asian Markets Erase Early Losses On Reports Of Partial Trade Deal, Easing Of Huawei Blacklist
By Marketwatch and Associated Press
Nikkei, Hang Seng in positive territory after early losses
Asian markets rallied from early losses into positive territory in early trading Thursday, following conflicting reports of progress in the U.S.-China trade war.
Markets opened lower following a report by the South China Morning Post (https://www.scmp.com/news/china/diplomacy/article/3032261/us-and-china-make-no-progress-key-trade-issues-two-days-deputy)that "no progress" had been made in low-level meetings to lay the groundwork for a high-level meeting starting Thursday in Washington.
But a later report by Bloomberg News (https://www.bloomberg.com/news/articles/2019-10-10/u-s-weighing-currency-pact-with-china-as-part-of-partial-deal) said the Trump administration was making moves toward a partial trade deal, including putting off tariff hikes scheduled to go into effect next week. The report said negotiations on touchier issues such as forced transfers of technologies could come later. The New York Times (https://www.nytimes.com/2019/10/09/us/politics/trump-huawei-trade.html) also reported that the U.S. would soon issue licenses to some U.S. companies to do business again with China's Huawei Technologies, a move that could significantly ease tensions.
Japan's Nikkei rose 0.5% and Hong Kong's Hang Seng Index gained 0.2%. The Shanghai Composite advanced 0.2% and the Shenzhen Composite jumped 0.5%. South Korea's Kospi fell 0.8%, while benchmark indexes in Singapore and Indonesia were mixed. Australia's S&P/ASX 200 was about flat. Taiwan's Taiex was closed for a holiday.
Among individual stocks, convenience-store chain FamilyMart rose in Tokyo trading, along with SoftBank and Advantest . In Hong Kong, AAC Technologies and Sunny Optical gained, while New World Development retreated. LG Electronics (066570.SE) advanced in South Korea while Fortescue Metals fell in Australia.