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Asian stocks follow Wall Street higher after US-China deal

/ 01:11 PM January 17, 2020

Asian stock markets followed Wall Street higher on Friday after China reported 6.1% economic growth in 2019 and Washington and Beijing signed an interim trade agreement.

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In this Thursday, Jan. 16, 2020, photo, an investor monitors stock prices at a brokerage in Beijing. Asian stock markets on Friday, Jan. 17 have followed Wall Street higher after China reported its economy grew by 6.1% in 2019 and Washington and Beijing signed an interim trade agreement. (AP Photo/Ng Han Guan)

Benchmarks in Shanghai, Tokyo and Hong Kong advanced after the U.S. benchmark S&P 500 index hit a new high and Google parent Alphabet passed $1 trillion in market value.

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China’s economic growth was the lowest since 1990 but forecasters pointed to improved activity in December. They said Wednesday’s signing of a truce in the war over Beijing’s technology ambitions and trade surplus might help to revive consumer and business confidence.

Investors are “finding inspiration” from the Wall Street rally while they try to figure out “where to from here” in U.S.-Chinese trade relations, said Jingyi Pan of IG in a report.

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“The market sentiment looks to have only improved into the end of the week,” said Pan.

The Shanghai Composite Index advanced 0.1% to 3,076.90 and Tokyo’s Nikkei 225 rose 0.5% to 24,055.77. Hong Kong’s Hang Seng was up 1 point at 2,259.16.

Seoul’s Kospi added XXX and Sydney’s S&P-ASX 200 gained 0.5% to 7,074.10.

On Wall Street, Alphabet became the fourth U.S. company in the $1 trillion club, joining Amazon, Apple and Microsoft.
The S&P 500 climbed 0.8% to 3,316.81 and the Dow Jones Industrial Average rose 0.9% to 29,297.64. The Nasdaq composite gained 1.1% to 9,357.13.

Chinese economic growth held steady in the three months ending in December at the previous quarter’s rate of 6% over a year earlier.

Monthly activity indicators showed “industry and investment improved sharply in December,” said William Adams of PNC Financial Services Group in a report.

Forecasters said the U.S.-Chinese trade deal might help to revive economic growth by reassuring companies and consumers that relations wouldn’t deteriorate further. Washington postponed planned tariff hikes on additional Chinese goods and Beijing promised to buy more American farm exports.

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If the public believes the truce is genuine, “improved sentiment could also boost economic growth in the near-term,” said Adams.

ENERGY: Benchmark U.S. crude lost 1 cent to $58.53 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 71 cents to $58.52 on Thursday. Brent crude, used to price international oils, lost 2 cents to $64.60 per barrel in London. It rose 62 cents the previous session to $64.62.

CURRENCY: The dollar advanced to 110.22 yen from Thursday’s 110.13 yen. The euro declined to $1.1132 from $1.1136.

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TAGS: Asian stocks, markest, shares, Stock Market, US-China trade
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