Asian stocks closed higher Thursday on expectations that the U.S. threats to expand tariff hikes is bluff and bluster and trade agreements will ultimately be reached.
Oil steadied after going into free fall on Wednesday amid supply concerns and the yen weakened ahead of U.S. consumer price inflation due tonight, while gold held steady near one-week low.
China’s Shanghai Composite index climbed 59.89 points or 2.16 percent to 2,837.66 after losing 1.8 percent the previous day on trade worries.
China has vowed to take countermeasures in response to the new U.S. tariffs, which will not effect until after a two-month review process. Hong Kong’s Hang Seng index rose 0.60 percent to finish at 28,480.
Japanese shares recovered from sharp losses in the previous session after the dollar hit a six-month high against the yen on the back of strong producer price inflation data released overnight.
The Nikkei average rallied 255.75 points or 1.17 percent to 22,187.96, while the broader Topix index closed 0.46 percent higher at 1,709.68.
Electronics maker Sony rose 0.9 percent, automaker Honda Motor gained 0.7 percent and Toyota Motor added 1.4 percent. Market heavyweight Fast Retailing jumped 3.8 percent.
Mobile carrier SoftBank soared as much as 6.4 percent after U.S. investment fund Tiger Global acquired a stake of more than $1 billion in the company.
Australian shares rallied as investors brushed aside trade war fears. The benchmark S&P/ASX 200 index rose steadily to end the session up by 52.70 points or 0.85 percent at 6,268.30 while the broader All Ordinaries index climbed 49.60 points or 0.79 percent to 6,349.80.
The big four banks jumped between 1.6 percent and 2.2 percent after the sector watchdog said there is no evidence of a mortgage credit crunch. Healthcare stocks also gained ground, with CSL rising 2.6 percent and Cochlear adding