Japanese shares led gains in Asia on Friday as investors weighed the truce between Washington and Beijing following a meeting between President Donald Trump and his Chinese counterpart Xi Jinping.
They reached a trade deal of sorts during a high-stakes meeting in South Korea on Thursday, de-escalating a rare-earth dispute that had threatened to plunge the world’s two biggest economies into a full-blown trade war.
“Both sides appear to be maintaining an edge for future negotiations by holding these measures as bargaining chips,” said JPMorgan Asset Management global market strategist Chaoping Zhu.
Japan’s Nikkei 225 rose more than 1% to hit a new record high, while the Topix added 0.79%, also hitting a new high.
South Korea’s Kospi added 0.22% after hitting a new high on Thursday. Small-cap Kosdaq rose 0.47%.
Australia’s S&P/ASX 200 started the day with an increase of 0.45%, reports SEEbiz.
Hong Kong’s Hang Seng index fell 0.33%, while mainland China’s CSI 300 was unchanged.
China’s manufacturing activity shrank more than expected in October, shrinking to the lowest level since May, an official survey showed on Friday, as trade tensions with Washington flared again during the month.
The official index of purchasing managers in production reached 49 points, data from the National Bureau of Statistics showed, which is less than economists’ expectations of 49.6 in a Reuters poll. A reading above the benchmark of 50 indicates growth, while one below suggests contraction.
