Asia Stocks Rebound as Investors Move Back to Riskier AssetsBy
HSI leads gains; Xi responds to Trump comment on North Korea
Volatility for stocks in South Korea, Hong Kong fades
Hong Kong stocks fueled a sudden rebound in Asian equity markets in late afternoon trading as investors shifted toward riskier assets.
The MSCI Asia Pacific excluding Japan Index gained 0.5 percent as of 4:48 p.m. in Hong Kong as investors stepped away from haven trades such as the yen and treasuries. The Hang Seng Index reversed from losses to gains after 3p.m. local time, led by Geely Automobile Holdings Ltd. and Tencent Holdings Ltd.
Volatility eased in both Hong Kong and South Korea after China’s president Xi Jinping told Donald Trump that talks were the only way to ease concerns over North Korea, after the U.S. President added public pressure to China last night.
The sharp spike of the Hang Seng could be caused by the “good news” about North Korea, which helped remove overhang in the market, according to Linus Yip, a Hong Kong-based chief strategist at First Shanghai Securities.
- Topix -1%, Nikkei 225 -1%
- Shanghai Composite Index -0.5%, HSCEI +0.4%, Taiwan Stock Exchange Weighted Index -0.2%
- S&P BSE Sensex Index +0.6%, NSE Nifty 50 Index -0.5%
- S&P/ASX 200 +0.1%, S&P/NZX 50 Gross Index little changed
- Telstra Shares Fall as TPG Plans Rival Australian Mobile Network
- Straits Times Index +0.4%, FTSE Bursa Malaysia KLCI Index +0.5%, Jakarta Stock Exchange Composite Index +0.3%, Philippines Stock Exchange PSEi Index +0.4%
— With assistance by Jeanny Yu