Stocks surge in Hong Kong, mainland China; Nikkei closed
Asian markets gained in early trading Monday as investors were heartened by Friday’s announcement of a partial trade deal between the U.S. and China.
President Donald Trump in Friday announced a “very substantial phase one deal” that included intellectual-property protections and the Chinese purchase of U.S. agricultural products. There were also reports that tariff hikes against $250 billion of Chinese goods, set to kick in this week, would be put off.
Some analysts were dubious, though. “Hardly the signs of a significant breakthrough,” Jeffrey Halley, senior Asia-Pacific market analyst for Oanda, wrote in a note Sunday. “Both sides appear to have taken small wins that suited them both in the here and now, kicking the significant issues down the road.”
Hong Kong’s Hang Seng Index HSI, +0.81% rose 1.1%, while the Shanghai SHCOMP, +1.15% gained 1.5% and the smaller-cap Shenzhen Composite 399106, +1.43% advanced 1.5%, despite data that China’s exports fell in September, in yuan terms, reversing an August gain. South Korea’s Kospi 180721, +1.11% rose 1.3%, while benchmark indexes in Taiwan Y9999, +1.63% , Singapore STI, +0.34% and Indonesia JAKIDX, +0.35% all gained. Australia’s S&P/ASX 200 XJO, +0.54% advanced 0.6%. Japan’s Nikkei was closed for a holiday.
U.S. bond markets will be closed for the Columbus Day holiday Monday, but stock markets will be open.
Among individual stocks, casino operator Galaxy Entertainment 27, +4.27% surged in Hong Kong, while food processor WH Group 288, +4.32% and HSBC 5, +1.70% also gained. Samsung 005930, +1.73% and chip maker SK Hynix 000660, +0.63% rose in South Korea. Mining giants BHP BHP, +1.98% and Rio Tinto RIO, +2.16% were up in Australia.