TOKYO – Asian shares inched up on Tuesday, with Chinese shares making decent gains after a week-long holiday, though investors remained cautious over US-China trade talks after President Donald Trump said a quick deal was unlikely.
European shares were expected to follow, with major European stock futures including pan-European Euro Stoxx 50 futures trading up 0.15 percent-0.2 percent.
Japan’s Nikkei climbed 1.0 percent while MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.55 percent, led by gains in tech shares in South Korea and Taiwan.
South Korea’s Samsung Electronics rose 1.2 percent after its profit guidance. The semiconductor firm said its third-quarter operating profit likely fell 56 percent on a downturn in global memory chip prices, but that was better than what analysts had anticipated.
Taiwan’s stock index gained 0.7 percent to hit five-month highs while Hong Kong shares extended gains after the territory’s leader said she had no plans to use the emergency regulation ordinance to introduce other laws.
Shanghai shares rose 0.6 percent after the week-long break, though gains were led mainly by defensive shares ahead of the crucial trade talks.
Spending on retail goods and dining during China’s National Day holidays returned to growth this year, offering unexpected respite to an economy that has been expanding at its weakest pace in almost three decades.
Still a private survey showed China’s services sector grew at its slowest pace in seven months in September.
On Wall Street, the S&P 500 lost 0.45 percent on Monday, unable to sustain gains made after positive tweets and news headlines about the trade talks.
US and Chinese deputy trade negotiators on Monday launched two days of talks aimed at paving the way for the first minister-level negotiations in months on Thursday and Friday.
Mere confirmation of the talks from Beijing has helped to improve the mood, or at least triggered text-reading algorithms to react by buying stocks and the yuan, said some market players. – Reuters