Hang Seng, Shanghai Open With Modest Gains

Published date: .

The local bourse has opened slightly higher following another sell-off the day before, but investors are cautiously keeping track of developments in the China-US trade war.

The Hang Seng Index edged up 0.18 percent, or 49 points, to 28,171.

On the mainland, the Shanghai Composite Index added 0.66 percent, or 19, points, to 2,902, while the Shenzhen Composite Index gained 0.86 percent, or 13 points, to 1,555.

Tokyo stocks opened flat, with the Nikkei 225 up just 0.01 percent or 2 points at 21,069 in early trade, while the broader Topix index was up 0.13 percent, or 2 points, at 1,537.

"The US market rebounded as worries over US-China trade friction receded after US President Trump offered an optimistic view" on the prospects for the negotiations, Toshiyuki Kanayama, senior market analyst at Monex, said in a commentary.

On Tuesday, Trump tweeted: "When the time is right we will make a deal with China," adding that his "respect and friendship with President Xi is unlimited."

However he also said the Federal Reserve could retaliate with cheap money in response to China's easy monetary policy.

"China will be pumping money into their system and probably reducing interest rates, as always, in order to make up for the business they are, and will be, losing.

"If the Federal Reserve ever did a 'match' it would be game over, we win! In any event, China wants a deal!" Trump tweeted.

The dollar fetched 109.58 yen in early Asian trade, against 109.62 yen in New York.

In Tokyo, Nissan plummeted 6.90 percent to 782.2 yen after the crisis-hit automaker said its net profits declined 57 percent year-on-year to a near-decade low of 319 billion yen (US$2.9 billion).

Its rival Toyota was down 0.15 percent at 6,519 yen and Honda was off 0.66 percent at 2,784.5 yen.

Some electronics shares were higher, with Sharp gaining 1.14 percent to 1,063 yen and electronic parts maker Rohm up 0.13 percent at 7,180 yen.

On Wall Street, the Dow ended up 0.8 percent at 25,532. (AFP)