Hulk Hogan, wrestling icon, dies at 71 in Florida home
Investing.com-- Most Asian stocks rose on Wednesday amid growing hopes that U.S. and Chinese leaders will speak this week and revitalize stalled trade talks between the two countries.
South Korean shares were by far the best performers for the day, rallying over 2% after Liberal party candidate Lee Jae-myung was elected president in Tuesday’s snap election, potentially ending months of political upheaval in the country.
Improving risk appetite helped Australian markets rise past weaker-than-expected gross domestic product data for the first quarter.
Regional markets took a positive lead-in from Wall Street, as White House officials said President Donald Trump will hold a call with Chinese counterpart Xi Jinping this week. Gains in technology stocks, especially chipmakers, also spilled over.
But Wall Street futures fell in Asian trade, after Trump signed an order increasing his import tariffs on steel and aluminum to 50%. S&P 500 Futures fell 0.1%.
Chinese shares upbeat, Trump-Xi call in focus
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.5% and 0.3%, respectively, while Hong Kong’s Hang Seng index added 0.6%.
Markets hoped that dialogue between Trump and Xi will help restart Sino-U.S. trade talks, which the White House admitted recently had stalled after a mid-May trade agreement.
Investors are holding out for a more permanent trade deal between the U.S. and China, after they agreed to temporarily slash their respective trade tariffs in May.
Recent purchasing managers index data highlighted the impact of increased U.S. trade tariffs on the Chinese economy, with manufacturing activity contracting in May amid slower export orders.
Focus in China is also on more stimulus measures from Beijing, although progress in Sino-U.S. trade talks could lessen the impetus for more economic support.
South Korean shares rally as liberals take presidency
South Korea’s KOSPI blew past its peers on Wednesday, rising 2.4% to a 10-month high.
Tuesday’s election results drummed up hopes for political stability and more policy clarity in the country, given that they marked a change in leadership after a failed attempt by former President Yoon Suk Yeol to establish military rule in late-2024.
Lee vowed to shore up local economic growth, as well as increase cooperation with the U.S. and Japan.
Separately, data showed South Korean consumer price index inflation grew less than expected in May- a trend that, coupled with more political stability, could open the door for more interest rate cuts by the Bank of Korea.
Broader Asian markets were mostly positive on trade hopes and gains in technology stocks.
Australia’s ASX 200 rose 0.7%, rising past softer-than-expected GDP data that showed trade headwinds and weak spending eliciting sluggish economic growth in the first quarter. But signs of softer growth spurred bets on more interest rate cuts by the Reserve Bank of Australia.
The ASX 200 was within spitting distance of a record high.
Japan’s Nikkei 225 and TOPIX indexes rose 1% and 0.7%, respectively. Shares in Toyota (NYSE:TM) Industries (OTC:TYIDF) Corp (TYO:6201) plummeted after Toyota Motor’s (TYO:7203) 4.2 trillion yen ($33 billion) tender offer to take the company private was seen as undervaluing the industrial equipment maker.
Singapore’s Straits Times index lagged, falling 0.3% on some losses in local bank stocks.
Gift Nifty 50 Futures for India’s Nifty 50 index pointed to a mildly positive open, after the index fell sharply from 25,000 points in recent sessions.