Modupe Gbadeyanka
By Investors Hub
Asian stocks closed mostly higher on Thursday after the White House indicated that some countries could be exempt from President Donald Trump’s planned tariffs on steel and aluminum imports. Better than expected economic data from China and Japan also offered support.
Chinese stocks ended higher after official data showed China’s exports grew at a faster than expected pace in February.
The benchmark Shanghai Composite index rose 17.63 points or 0.5 percent to close at 3,289.29, while Hong Kong’s Hang Seng Index jumped 457.60 points or 1.5 percent to 30,654.52.
China’s exports jumped 44.5 percent year-over-year in February in dollar terms, much faster than the 11.0 percent rise economists had forecast.
Imports climbed 6.3 percent from a year ago, slower than the expected growth of 8.0 percent. The trade surplus totaled $33.74 billion, in contrast to the expected deficit of $5.7 billion.
Japanese stocks rebounded, although markets ended off their day’s highs ahead of the ECB and Bank of Japan meetings and Trump’s final announcement of tariffs on steel and aluminum imports.
The Nikkei 225 Index ended up 115.35 points or 0.5 percent at 21,368.07 after rising more than 1 percent earlier in the day. The broader Topix index closed 0.4 percent higher at 1,709.95.
Honda Motor and Sony rose about 1 percent on a weaker yen. Steelmaker Japan Steel Works jumped 3.2 percent and Kobe Steel rallied 3 percent as worries about a trade war eased. Nintendo, Tokyo Electron and Eisai soared 4-10 percent.
Japan’s GDP grew a seasonally adjusted 0.4 percent sequentially in the fourth quarter of 2017, the Cabinet Office said in Thursday’s revision. That exceeded expectations for an increase of 0.2 percent after last month’s preliminary reading suggested a gain of 0.1 percent.
Australian shares rose as trade war fears eased and trade surplus figures for January topped forecasts. The benchmark S&P/ASX 200 Index rose 40.90 points or 0.7 percent to finish at 5,942.90, while the broader All Ordinaries Index ended up 41.20 points or 0.7 percent at 6,046.60.
The big four banks rose between 0.4 percent and 1.4 percent after RBA Governor Philip Lowe sounded upbeat about domestic economic growth.
Mining stocks ended mixed, with Rio Tinto rising 0.6 percent and Fortescue Metals Group climbing 2.1 percent, while BHP Billiton dropped 2 percent.
Energy firms also turned in a mixed performance after oil prices fell more than 2 percent overnight on data showing an increase in U.S. crude inventories and output.
On the economic front, Australia posted a merchandise trade surplus of A$1.055 billion in January, the Australian Bureau of Statistics said. That blew away forecasts for a surplus of A$200 million following the upwardly revised A$1.146 billion deficit in December.
