Asian markets cautiously higher ahead of Xi-Trump summit
AFP
AFP,HONG KONG: Asias markets mostly rose yesterday but investors moved nervously ahead of a summit between Chinese President Xi Jinping and Donald Trump this week.
The two-day gathering in Florida comes after the US tycoon has hit out at Beijings trade policies and labelled it a currency manipulator, fanning fears of a trade war between the worlds top two economies.
There are also geopolitical concerns linked to North Koreas growing nuclear programme, with Trump warning he would be prepared to sideline Beijing in dealing with the rogue state.
North Korean leader Kim Jong-Un raised tensions Wednesday by firing another ballistic missile into the Sea of Japan, the latest in a series of launches in recent months.
Also in focus is the release of US jobs figures Friday, which will provide a fresh snapshot of the state of the worlds top economy, as well as minutes from the Federal Reserves March policy meeting. A private US jobs reading is due later Wednesday.
It seems most folks are waiting on the meeting between Presidents Xi and Trump. And of course, non-farm payrolls, said Greg McKenna, chief market strategist at AxiTrader.
Hong Kong jumped 0.6 per cent while Shanghai rallied 1.5 per cent as investors welcomed a decision to set up a new economic development zone near Beijing.
The news boosted property and construction stocks as it sparked a frenzy among out-of-town home buyers.
The Xiongan New Areaa patch of apartments and wetlands in Hebei provincehas less than one per cent of Beijings economic output, but was on Saturday unveiled as the future location of a special economic zone similar to those established in Shenzhen and Shanghai.
Home prices in one area surged fivefold, financial magazine Caixin reported, causing officials to put a freeze on property sales.
Tokyo added 0.3 per cent , while Sydney rose by a similar amount. Seoul was flat but Taipei and Manila rallied more than one per cent .
The gains followed a positive lead from Wall Street after the US Commerce Department said the trade deficit narrowed in February by the most in six months.
But traders have taken a step back from the four-month rally that greeted Trumps November election victory as they grow increasingly concerned about his ability to push through promised tax cuts and spending that would fire the economy.
In early European trade London rose 0.3 per cent , Frankfurt was flat and Paris added 0.1 per cent .
