Banks, energy stocks pull down Australian shares
Australian shares fell on Thursday, dragged down by energy and bank stock, while investors assessed the economic implications of the country’s top trading partner China unlocking more fiscal stimulus.
The S&P/ASX 200 index dropped 0.6percent to hit 8,096, as of 1205 GMT.
The benchmark fell 0.7percent on Wednesday.
Australia’s top trading partner China unleashed more stimulus on Wednesday, as it looks to defend its economy from the ramifications of a tariff face-off with the US Energy stocks slumped about 2.5percent, after crude oil prices settled down to their lowest in months as the US reported larger-than-expected stockpiles of the commodity.
Sector major Woodside Energy shed as much as 5.1percent to hit a more than three-year low of A$22.89, while smaller rival Santos fell 1percent.
Heavyweight financials dropped 0.5percent and were set for a third straight session of losses.
South Korean shares rise
South Korean shares rose on Thursday, as automakers jumped after US President Donald Trump exempted auto imports from Mexico and Canada from tariffs for a month, while steelmakers also rallied.
The benchmark KOSPI was up 14.73 points, or 0.58percent, at 2,572.86 as of 0128 GMT.
Hyundai Motor rose 1.28percent and sister automaker Kia Corp, which has a factory in Mexico, gained 2.82percent, after Trump said the US would exempt automakers from 25percent tariffs on Canada and Mexico for one month.
Steelmaker POSCO Holdings jumped 5.97percent and Hyundai Steel climbed 5.63percent. Earlier this week, Trump said South Korea and other countries wanted to partner with the United States on a “gigantic” natural gas pipeline in Alaska.
Japan’s Nikkei rises
Japan’s Nikkei share average rose on Thursday, tracking overnight Wall Street gains, as worries about the impact of US President Donald Trump’s tariff policy eased, while declines of chip-related stocks capped gains.
The Nikkei rose 0.82percent to 37,726.02 by the midday break, while the broader Topix jumped 1.18percent to 2,750.27.
Wall Street’s main indexes finished higher in choppy trading on Wednesday, as investors cheered the likely easing of trade tensions between the US and its major trading partners.
Stocks turned positive after a report said Trump was considering a one-month delay for auto tariffs on Canada and Mexico. Equities extended gains after a White House announcement confirmed that Trump agreed to delay tariffs on some vehicles.
“Market players remain cautious about the US tariff policy, but now they expect Trump would not execute anything that could hurt the global economy,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
Indian stocks may open higher
India’s benchmark indexes are likely to open higher on Thursday, in line with global equities, following U.S. President Donald Trump’s temporary tariff reprieve on automobile imports from Mexico and Canada.
The GIFT Nifty futures were trading at 22,461 as of 07:50 a.m. IST, indicating that the blue-chip Nifty 50 will likely open above Wednesday’s close of 22,337.30.
U.S. President Donald Trump is open to hearing about other products that should be exempted from the tariffs, which took effect Tuesday, the White House said.
Asian stocks gained in early trade on hopes that Trump could walk back on some tariff measures, with the MSCI Asia ex Japan adding 1percent.
Back home, Nifty 50 logged its biggest daily gains on Wednesday, a day after posting its longest-ever losing streak.
“As the recovery remains fragile due to global uncertainty and FPIs show no signs of halting the sell-off trend, (the) market could remain volatile,” said Prashanth Tapse, senior VP (research) at Mehta Equities.
Domestic investors drove the strong recovery on Wednesday after foreign investors sold 28.95 billion rupees ($333.2 million), per provisional data.
As tariff reprieve lifts sentiment, stocks rise
Asian stocks rose on Thursday as investors held out hope that trade tensions could ease after U.S. President Donald Trump exempted automakers from tariffs for a month, while the euro stood tall ahead of the European Central Bank policy meeting.
Japanese government bonds fell sharply in Asian hours after German long-dated bonds were swept up in their biggest sell-off in years as the parties in talks to form Germany’s new government agreed to try to loosen fiscal rules.
Japan’s 10-year government bond yield hit a near 16-year high as sentiment remained fragile.
Much of the focus in markets remains on an escalating global trade war after 25percent tariffs on imports from Mexico and Canada were imposed on Tuesday along with fresh duties on Chinese goods, sparking fears about economic growth.
But on Wednesday, the White House said Trump will exempt automakers from his 25percent tariffs on Canada and Mexico for one month as long as they comply with existing free trade rules.
That led U.S. stocks sharply higher, shoring up Asian markets in early trade. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.86percent, while Tokyo’s Nikkei gained 0.8percent.
Sri Lanka shares close higher
Sri Lankan shares closed higher on Wednesday, aided by materials and information technology stocks.
The CSE All-Share index settled 1.87percent higher at 16,166.53.
Nation Lanka Finance Plc and Bukit Darah Plc were the top gainers on the index, up 50percent and 14.5percent, respectively.
Trading volume on the index rose to 83.1 million shares from 77.3 million shares in the previous session.
The equity market’s turnover rose to 5.18 billion Sri Lankan rupees ($17.55 million) from 2.40 billion rupees in the previous session, according to exchange data.
Foreign investors were net sellers, offloading stocks worth 1.25 billion rupees, while domestic investors were net buyers, purchasing shares worth 5.04 billion rupees, the data showed.