BENGALURU: Asian shares jumped on Monday as optimism over renewed US-China trade talks rekindled risk appetite, sending South Korean and Taiwanese benchmarks to record highs and calming investor jitters across the region.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.6 percent.
South Korea’s chief policy adviser said on Sunday he expected a higher chance of securing the trade deal by the Asia-Pacific Economic Cooperation (APEC) summit later this month.
While Washington and Beijing remain in a fragile truce, US President Donald Trump struck a conciliatory tone on Friday, saying he expected a “fair deal” with China and reaffirmed plans to meet President Xi Jinping at the summit.
Westpac analysts said the recent flare-up in tensions looked like “strategic posturing” ahead of China’s plenum and the Trump-Xi meeting, adding that “China-exposed growth assets can breathe a little easier for now.”
China, Southeast Asia’s largest trading partner, reported stronger-than-expected third-quarter GDP, signalling resilience despite property-sector strains and trade frictions. The upbeat data, coupled with robust industrial output and retail sales, lifted regional risk appetite.
Japan’s Nikkei hit a record high after political negotiations appeared to clear the way for fiscal expansionist Sanae Takaichi to become the country’s next prime minister.
Indonesia’s Jakarta Composite Index climbed 2.4 percent, its biggest intraday gain since August, even as student groups planned protests in Jakarta to mark President Prabowo Subianto’s first year in office, just two months after deadly demonstrations shook the country.
Among other regional markets, Bangkok shares rose more than 0.94 percent, while Manila and India added more than 0.09 percent and 0.58 percent respectively. Singapore’s STI was the sole laggard, slipping 0.63 percent.
Asian currencies were broadly steady against a softer US dollar, with the Taiwan dollar and South Korean won vrising marginally by 0.1 percent each, while others lacked momentum.