Shares rose in Asia on Monday after President Donald Trump temporarily re-opened the U.S. government. Japan was the main regional outlier, as the Nikkei 225 index
lost 0.4% with uncertainty over China-U.S. trade talks bringing a lull in buying sentiment.
Hong Kong’s Hang Seng index
gained 0.4% while the Shanghai Composite index
climbed 0.4% and the smaller-cap Shenzhen Composite
rose 0.2%. The Kospi
in South Korea edged 0.4% higher. Markets in Southeast Asia were mostly higher. Australia’s markets were closed for a national holiday.
Among individual stocks, Sony
rose in Tokyo, while SoftBank
and Tokyo Electric
fell. In Hong Kong, Sunny Optical
were among the biggest gainers, while CSPC Pharmaceutical
sank. In Seoul, Samsung
rose after announcing it was phasing out plastic packaging, and LG Electronics
advanced while SK Hynix
There was muted reaction in U.S. markets on Friday to news that Trump and congressional leaders had reached a deal to reopen the federal government for three weeks while talks continue over Trump’s demands for money to build a wall along the U.S. border with Mexico. Trump announced the agreement to break the 35-day impasse as delays at airports and widespread disruptions heightened the urgency to end the partial shutdown. However, uncertainty persists since Trump almost immediately threatened another shutdown or emergency action if he does not get a “fair deal.”
“So the U.S. government being ‘open’ again is a relief. But the greater challenge ahead is to prevent another shutdown come 15th Feb. and to that end, headway in talks between Republicans and Democrats over the next three weeks is critical,” Mizuho Bank said in a commentary. “While how open both sides are on a border security deal remains in the foreground, it is the U.S.-China trade talks (Wed.-Thu.) that will be in the limelight.”
Talks aimed at resolving the impasse over Chinese technology ambitions and other issues are due to resume in Washington later in the week, led by the U.S. Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He. Analysts are forecasting progress in redressing the trade imbalance between the world’s two largest economies, perhaps staving off further hikes in punitive tariffs imposed by both sides, but they expect gaps to remain on key problems such as China’s blueprint for state-led development of leading technologies.
Stocks closed higher Friday, recovering a chunk of their losses from earlier in the week. Technology and industrial companies jumped as companies continued to report solid results for the fourth quarter. The S&P 500 index
rose 0.85% to 2,664.76, but the index fell 0.2% for the week after big gains in the previous four. The Dow Jones Industrial Average
added 0.7%, to 24,737.20. The Nasdaq composite
surged 1.3% to 7,164.86.
U.S. crude oil
shed 33 cents to $53.36 per barrel in electronic trading on the New York Mercantile Exchange. It rose 1.1 percent to settle at $53.69 per barrel on Friday. Brent crude
, used to price international oils, gave up 26 cents to $61.38 per barrel. It had gained 0.9 percent on Friday to $61.64 per barrel.
was trading at 109.36 yen down from 109.55 yen on Friday.
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