Asian shares rise following broad rally for US stocks
TOKYO (AP) — Asian shares rose Friday as investors bought back stocks following gains on Wall Street, although worries about a trade dispute between the U.S. and China remained. Japan's benchmark Nikkei 225 added nearly 0.6% in morning trading to 20,706.95. Australia's S&P/ASX 200 gained 0.2% to 6,577.90. South Korea's Kospi added nearly 1.0% to 1,939.30. Hong Kong's Hang Seng rose 0.4% to 26,216.54, while the Shanghai Composite edged up 0.4% to 2,806.54.
Data on Japan's economy for the April-June period that were better than expected added to the optimism. The Cabinet Office reported Japan's gross domestic product, or the total value of a nation's goods and services, grew at a seasonally adjusted annualized rate of 1.8% during the three months ended in June, compared to the previous quarter.
Technology companies powered stocks broadly higher on Wall Street Thursday, driving the S&P 500 to its best day in more than two months and erasing its losses for the week. The rally, which pushed the Dow Jones Industrial Average up by more than 370 points, followed an early rise in bonds yields after a weekly government report on unemployment claims came in better than economists had expected.
The absence of new worrisome turns in the U.S.-China trade tussle may have also helped keep investors in a buying mood. The S&P 500 index rose 54.11 points, or 1.9%, to 2,938.09. The Dow Jones Industrial Average climbed 371.12 points, or 1.4%, to 26,378.19. The Nasdaq composite, which is heavily weighted with technology stocks, vaulted 176.33 points, or 2.2%, to 8,039.16. It also had its best day in more than two months and was on track to end the week with a gain. The Russell 2000 index picked up 31.45 points, or 2.1%, to 1,532.13.
President Donald Trump spooked the markets last week when he threatened to impose 10% tariffs on all Chinese imports that haven't already been hit with tariffs of 25%. China retaliated on Monday and allowed its currency, the yuan, to weaken against the U.S. dollar. China stabilized the yuan on Tuesday, helping lift stocks.
ENERGY Benchmark crude rose 9 cents to $52.63 a barrel. It rose $1.45 to $52.54 a barrel Thursday. Brent crude oil, the international standard, added 7 cents $57.45 a barrel. CURRENCIES: The dollar rose to 106.01 Japanese yen from 105.97 Thursday. The euro was little changed but inched down to $1.1195 from $1.1197.