Asian stocks follow Wall Street higher after Trump downplays trade war
BEIJING (AP) — Asian stocks followed Wall Street higher on Wednesday after President Donald Trump downplayed his escalating tariff war with Beijing and said a settlement is possible.
Benchmarks in Shanghai, Tokyo, Hong Kong and Sydney advanced Wednesday as investors mulled the likely costs of U.S. and Chinese tariff hikes on hundreds of billions of dollars of each other's goods.
On Wall Street, tech stocks led the way higher Tuesday after suffering a beating the previous day. Qualcomm and Cisco both rose, along with Oracle, Adobe and others. Banks also rose. JPMorgan Chase, Bank of America and others moved higher.
The benchmark Standard & Poor's 500 index rose 0.8 percent to 2,834.41. It recovered nearly a third of Monday's loss and would now need to rise 3.9% to regain the record it set a couple weeks ago.
The Dow Jones Industrial Average rose 0.8 percent to 25,532.05 and the Nasdaq composite index jumped 1.1 percent to 7,734.49.
Trump said on Twitter the conflict over Beijing's technology ambitions and trade surplus was a "little squabble" between friends. He said, "When the time is right we will make a deal with China."
Global equities rallied on that "positive tone," said Edward Moya of OANDA in a report.
Despite no sign of a deal or even a date for more talks, "no escalation in tensions was good enough of a reason for investors to return to buying stocks," said Moya.
The Shanghai Composite Index rose 1.1 percent to 2,915.35 and Tokyo's Nikkei 225 added 0.2 percent to 21,100.80. Hong Kong's Hang Seng advanced 0.8 percent to 28,356.30 and Sydney's S&P-ASX 200 was 0.5 percent higher at 6,271.20.
Markets in Taiwan, New Zealand and Indonesia also advanced. Singapore retreated.
Trump threw financial markets into turmoil with his surprise May 5 announcement of plans to raise tariffs on $200 billion of Chinese imports to 25 percent from 10 percent. When that went ahead Friday, Beijing retaliated by raising duties on $60 billion of American goods.
Investors worry that in addition to depressing trade, the fight sparked by U.S. complaints about China's technology ambitions might hurt consumer and business confidence, depressing spending and investment.
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