The Nikkei 225 advanced 0.88% , bolstred by extended softness in the yen. Steelmakers led early gains,with JFE Holdings rising 10.06%. Exporters mostly tracked higher – and so did bank shares.
In South Korea, the Kospi gained 0.37%. Tech was mixed – with some Apple suppliers giving up erly gains that were made after the company beat earnings expectations. LG Innotek shed -1.84% after rising more than 2% previously.
Chinese shares slipped into the negative, as investors absorbed trade headlines and the release of a private survey of Chinese manufactring , which was found to meet expectations. The Caixin/ Markit Purchasing Manager’s Index came in at 50.8, which was down from 51.0 in June. The Shanghai Composite edged down by 0.32% and the blue-chip CSI 300 index tracked lower by 0.4%
The Hang Seng Index, of Hong Kong pared early gains to trade marginally lower – with Apple supplier Sunny Optical up 1.24%. Steep losses were seen in the real estate sector though.
The latest development in the ongoing trade dispute between the two largest ecnomies in the world came after US imposed tarriffs on $34bn worth of Chinese goods in early July—a move that met with rapid retaliation from Beijing.
MSCI’s index of shares in Asia Pacific, minus Japan, advanced 0.08% in the afternoon trade – with the slight advancement—following the news that US and China are attempting to restart trade talks.
Representatives of US Treasure Secretary Steven Mnuchin and Chinese Vide Premier Liu He remain in private talks to resume negotiations on trade matters – in order to avoid a full-on trade war – reported Bloomberg news. Munchin has told CNBC last week that “quiet conversations” were Beijing had continued to take place.