Asian Stocks Rise Again As Trade Hopes Stick, China Telcos Lead
Asian Stocks Talking Points:
- All main indexes were in the green Friday afternoon
- The Dollar also rose as investors looked to official labor data
- Surveys already released have given them hope
Find out what retail foreign exchange investors make of your favorite currency’s chances right now at the DailyFX Sentiment Page
Asia Pacific shares were buoyant once again on Friday and look set to end the week on a positive note. Investors were still cheered by ongoing signs of trade contact between China and the United States in the previous session.
It looks as though negotiations between the two will begin once again in Washington next month.
Shares of Chinese telecom giant ZTE got a big boost in both Hong Kong and Shenzhen on a Reuters report that Italy’s new government has approved use of special powers to oversee fifth-generation network supply. It was not immediately clear from the report that his was especially good news for the likes of ZTE and Huawei, both of which supply Italian telecom companies, but the market certainly seems to have taken it as such.
The Shanghai Composite was up 0.2% as its afternoon session got under way, with the Hang Seng up 0.4%. The Nikkei 225 added 0.6%. Official Japanese data Friday showed an eighth consecutive monthly rise for household spending but, at an annualized rate of 0.8% expansion was below market expectations.
The ASX 200 was up by 0.5% with general risk appetite benefitting the major banks. Westpac was included in the gainers despite its being hit with a class action Friday alleging that superannuation fund members had been short-changed. Gold miners remained pressured with haven assets unwanted.
The Australian stock benchmark is back up to highs not seen since the start of August on its daily chart
Interestingly it has also recaptured its old July trading band which had previously provided formidable resistance.
The US Dollar was broadly supported by Thursday’s strong showings for service-sector output and private-sector employment. The whole market is now of course on watch for official labor-market numbers due later in the global day. A rise of 160,000 nonfarm jobs is expected for August.
The British Pound remained close to one-month highs against the US Dollar, in spite of clear political fluidity over Brexit in the UK.
Asian Stocks Resources for Traders
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--- Written by David Cottle, DailyFX Research
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.