Asian Stocks Firm; Australian Shares Pass 7000-Point Milestone

The Australian share market surged into record territory on Thursday, passing the 7000-point milestone for the first time ever. The Bank of Japan is expected to keep monetary policy steady next week.
James Hyerczyk
Asia Australian Stocks

The major Asia Pacific stock indexes finished mostly higher on Thursday after the United States and China signed an interim trade deal on Wednesday afternoon local time. The two economic powerhouses inked Phase One of a trade pact that will roll back some tariffs and require China to boost purchases of U.S. goods and services by $200 billion over two years.

On Thursday, Japan’s Nikkei 225 Index settled at 23933.13, up 16.55 or +0.07%. Hong Kong’s Hang Seng Index closed at 28883.04, up 109.45 or +0.38% and South Korea’s KOSPI Index finished at 2248.05, up 17.07 or +0.77%.

China’s Shanghai Index settled at 3074.08, down 15.96 or -0.52% and Australia’s S&P/ASX 200 Index finished at 7041.80, up 47.00 or +0.67%.

US-China Trade Deal Recap

Stock investors in Asia showed little reaction on Thursday to the signing of Phase One of the U.S.-China trade deal in Washington on Wednesday afternoon. The agreement ended some uncertainties for the world economy and reduced the fears of an escalation of the trade war.

The deal doesn’t end the trade war, per se, but it does root out several practices by Beijing that have been a thorn in the side of the White House and members of Congress from both parties.

Essentially, the Phase One trade deal is a line in the sand that allows both parties to monitor progress and establish trust while working out even tougher issues in a Phase Two agreement. These include intellectual property theft and forced technology transfers from U.S. firms in exchange for Chinese market access. The deal also details a $200 billion increase in Chinese purchases of U.S. goods over two years.

Australian Shares Surge as Stock Market Passes 7000 Points for First Time

The Australian share market surged into record territory on Thursday, passing the 7000-point milestone for the first time ever. The catalysts behind the rally were positive cues overnight from Wall Street after the U.S. and China signed a long-awaited Phase One trade deal.

In the tech sector, Wisetech Global gained more than 4 percent, while Appen and Xero added 2 percent and 1 percent respectively.

Gold miners were also higher after gold prices rose overnight. Evolution Mining and Newcrest Mining advanced more than 1 percent each.

BOJ to Keep Policy Steady, Raise Growth Outlook as Risks Subside

The Bank of Japan is expected to keep monetary policy steady next week and nudge up its economic growth forecast, as the U.S.-China trade deal and de-escalation in Middle East tensions take some pressure off the central bank for more stimulus.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.