A day after Asian stocks sank after the Trump administration announced $200 billion in new tariffs against Chinese goods, markets strongly rebounded in early trading Thursday, with investors around the region apparently gaining optimism from a 1%-plus bounce by Chinese indexes.
Both the Shanghai Composite SHCOMP, +1.90% and the smaller-cap Shenzhen Composite 399106, +2.39% were up more than 1.2%, largely making up Wednesday’s losses. Hong Kong’s Hang Seng Index HSI, +0.62% gained as well, with ZTE 0763, +22.08% shares skyrocketing after the Chinese telecom was poised to resume doing business with U.S. suppliers. China’s state-run shipper Cosco 2866, +0.00% was up almost 1%.
Despite the yen hitting six-month lows against the dollar USDJPY, +0.23% , domestic-driven stocks were leading the way in Japan, reflecting investors’ caution about cyclical stocks. The Nikkei NIK, +1.22% was up 1.1%, led by drug maker Eisai 4523, +9.27% , while beverages firm Yakult Honsha 2267, +3.22% and diaper maker Unicharm 8113, +2.55% jumped as well. Energy stocks, however, skidded following oil’s overnight slump. Explorer Inpex 1605, -2.87% and distributor JXTG 5020, -3.35% were both off more than 3%.
Australia’s S&P/ASX 200 XJO, +0.89% steadily gained steam toward a 1% gain despite the overnight slump in oil prices. Shares of Oil Search OSH, -0.22% dropped early, but recovered as the trading day went on. Markets in Taiwan Y9999, +0.35% , Singapore STI, +0.06% and Malaysia FBMKLCI, +0.32% also posted gains. New Zealand’s NZX-50 NZ50GR, -0.07% was the only regional index in the red, down just a fraction.