Asian stocks bounce in relief as Trump delays China tariffs

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Asian shares joined a global equities rally and safe-haven government bonds pulled back on Wednesday, after Washington delayed tariffs on some ...

TOKYO: Asian stocks joined a global equities surge on Wednesday, after Washington delayed tariffs on some Chinese imports and gave much-needed relief for markets gripped by political and economic turmoil.

The Shanghai Composite Index advanced 0.6per cent while Hong Kong's Hang Seng , which has been hurt by disruptions from large anti-government protests, rose 0.5per cent.Advertisement Kenta Inoue, senior market economist at Mitsubishi UFJ Morgan Stanley Securities, pointed out that Trump's tariff delay came just as U.S. stocks were stalling.

Growth of China's industrial output slowed much more than expected to 4.8per cent in July from a year earlier, official data showed on Wednesday, in the latest sign of faltering demand as the United States ramps up trade pressure. July's pace was the slowest since February 2002. Fears of a possible return to interventionist policies, and by extension a possible debt default, jolted global markets this week after conservative Argentina President Mauricio Macri was handed a trouncing by the opposition in presidential primaries over the weekend.

The dollar index versus a basket of six major currencies inched down 0.05per cent to 97.759 after advancing nearly 0.5per cent the previous day.The greenback's advance stalled as the sharp rise in U.S. yields seen overnight ran out of momentum.

 

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