(Bloomberg) — Stocks in Asia and European and US equity futures climbed as a plan for Donald Trump and Xi Jinping to meet eased nerves around a trade war. Treasuries were steady ahead of US inflation data.
An MSCI gauge of Asian shares was up around 0.4%, resuming a blistering rally this year that has pushed the index to all-time highs. Tech stocks were among the big drivers, with South Korean chipmaker SK Hynix Inc. up as much as 6.9%. Semiconductor stocks also led the gains in China on the nation’s renewed emphasis on tech self-reliance. The tech-heavy STAR 50 Index rallied more than 3%.
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US and European equity futures climbed, joining in the upbeat mood. Shares in Intel Corp climbed in post-market trading Thursday in New York after an upbeat revenue forecast.
Oil prices fell ahead of US inflation data. A gauge of the dollar edged higher, while gold fell. Yen selling intensified as Japan’s Finance Minister signaled the country may need to issue additional debt to fund Prime Minister Sanae Takaichi’s upcoming economic package. The yen weakened against the greenback for a sixth consecutive session.
Improving sentiment was helped by a White House announcement that President Trump will meet his Chinese counterpart Xi Jinping, a chance for cooler heads to prevail after a recent flare-up in trade tensions. The two leaders will talk next Thursday on the sidelines of the Asia-Pacific Economic Cooperation summit, their first face-to-face meeting since Trump returned to power.
“The confirmation of a Xi–Trump meeting gave markets a clear reason for a relief rally today,” said Hebe Chen, an analyst at Vantage Markets in Melbourne. “Not from hopes of warmer U.S.–China relations ahead, but from the perception that any progress is better than stalemate, and that a new deal before the truce deadline now appears more attainable.”
Chinese officials pledged to “greatly increase” the country’s strength and capacity for self-reliance in science and technology in the next five years, according to a communique released Thursday after a four-day conclave of the Communist Party’s Central Committee. Although the statement contained few surprises for investors, it confirmed Beijing’s commitment to bolster the tech sector.
Gains for Chinese semiconductor firms in the past few months partly reflect their broadening appeal among investors, Phelix Lee, an equity analyst at Morningstar, said on Bloomberg TV.
