Hong Kong (AFP) – Asian markets largely rose Friday, tracking Wall Street gains, as China said it was considering a US offer to negotiate steep tariffs. US markets had forged higher Thursday following strong results from tech giants Microsoft and Meta that helped offset lingering economic worries. President Donald Trump’s levies reached 145 percent on many Chinese products in April, while Beijing has responded with fresh 125 percent duties on imports from the United States.
On Friday, China’s commerce ministry said it was evaluating a US offer for negotiations on tariffs, but wanted Washington to show “sincerity” and be ready to scrap levies that have roiled global markets and supply chains. Trump has repeatedly claimed that China has reached out for talks on the tariffs, and this week said he believed there was a “very good chance we’re going to make a deal”. Dozens of countries face a 90-day deadline expiring in July to strike an agreement with Washington and avoid higher, country-specific rates.
Stephen Innes of SPI Asset Management said Beijing and Washington were now “waving detente flags” in their spiraling trade war. Beijing’s demand for sincerity was an apparent call to ditch the 145 percent rate, before holding serious talks, Innes said in a note Friday. “But dig a layer deeper, and the path is still littered with landmines,” he added.
In Asia on Friday, Hong Kong’s Hang Seng Index was up more than 1.7 percent at the close, while Tokyo’s main Nikkei index closed up 1.04 percent. Taipei gained 2.7 percent and Sydney closed up 1.1 percent, while Seoul edged up 0.1 percent and New Zealand was flat. Mainland Chinese markets were closed for a holiday.
In Europe, London was up in early trading while Paris and Frankfurt both rose more than one percent in trade after public holidays. Japan’s envoy for US tariff talks said in Washington on Thursday that a second round of negotiations between the two countries had been “frank and constructive”. Japan, a key US ally and its biggest investor, is subject to the same 10 percent baseline tariffs imposed on most nations plus steeper levies on cars, steel, and aluminium.
The Bank of Japan warned earlier that tariffs were fueling global economic uncertainty and revised down its growth forecasts while keeping its key interest rate steady. Traders are looking ahead Friday to US jobs data for April for indications of the US central bank’s path for interest rates.
– Key figures at around 0700 GMT –
Tokyo – Nikkei 225: UP 1.04 percent at 36,830.69 (close)
Hong Kong – Hang Seng Index: UP 1.74 percent at 22,504.68 (close)
Shanghai – Composite: closed for holiday
Euro/dollar: UP at $1.1321 from $1.1289 on Thursday
Pound/dollar: UP at $1.3290 from $1.3277
Dollar/yen: DOWN at 145.19 yen from 145.44 yen
Euro/pound: UP at 85.18 pence from 85.02 pence
West Texas Intermediate: DOWN 0.1 percent at $59.18 per barrel
Brent North Sea Crude: DOWN 0.06 percent at $62.09 per barrel
New York – Dow: UP 0.2 percent at 40,752.96 (close)
London – FTSE 100: UP 0.7 percent at 8,558.68
Paris – CAC 40: UP 1.33 percent at 7,694.86
Frankfurt – DAX: UP 1.5 percent at 22,834.79
burs-sco/kaf/jfx
© 2024 AFP
