Asian Stocks Hit 19-Month High Amid Metals Rally, Abe-Trump MeetBy
Energy, material stocks lead rally as oil holds gains
Improving trade sentiment supports Asian markets, IG says
A rally in copper and iron-prices helped push Asian equities to the highest since July 2015 as Chinese stocks listed in Hong Kong outperformed the region. Japanese shares rose after a positive meeting between Prime Minister Shinzo Abe and U.S. President Donald Trump.
Most regional markets were led higher by energy and material stocks as oil also held gains after the International Energy Agency said OPEC achieved a record 90 percent initial compliance with its output-cut deal. The MSCI Asia Pacific Index rose 0.4 percent as of 4:46 p.m. Hong Kong time.
"A seemingly constructive meeting between President Donald Trump and Japan Prime Minister Shinzo Abe, in addition to the U.S. president’s backing of the ‘One China’ policy, could allay some of the trade concerns in Asia and set free into the market more bullish bets," said Jingyi Pan, a market strategist at IG Asia Pte Ltd.
- Hang Seng Chinese Enterprises Index advanced 1.3% for a 6th day of gains, HSI +0.6%, Shanghai Composite +0.6%
- Topix rose 0.5% higher, Nikkei 225 +0.4%, as the yen weakened against the dollar
- Australia’s S&P/ASX 200 +0.7%, extended its rise to five days led by materials and energy stocks
- Fortescue Metals +6.2%, Western Areas +5.5%, Mineral Resources +4%
- South Korea’s Kospi +0.2%; Taiex +0.5%
- Straits Times Index +0.3%; FTSE Bursa Malaysia KLCI +0.6%; Jakarta Composite Index +0.5%; Philippine Stock Exchange Index +0.8%
- PCCW fell 6% after it announced plans to sell a $1.1b stake in HKT Telecom unit