Global stocks are moving up on Friday as investors watched developments on Sino-American trade relations. The two-day US-China trade talks ended without concrete results, though China promised to “substantially” expand purchases of US goods.
Meanwhile, the US President Donald Trump said the trade dispute would hopefully be resolved before the March 1 deadline.
The investors were carefully monitoring the reporting season in the US, which is currently within its busiest week.
Asian markets recap
Japanese blue-chip index Nikkei 225 ended nearly flat on Friday, as dismal results from firms such as Nomura Holdings and Nintendo trimmed earlier gains from upbeat earnings in other sectors and a stronger Wall Street finish. The index ended just 0.07% higher at 20,788.39, after climbing to a peak of 20,929.63, its highest since December 19. For the week, the index dropped by 0.1%. The smaller index Topix closed down by 2.86 points, or 0.18%, to 1,564.63 points. The stocks of Murata Manufacturing jumped by 8.46% after the electronic parts maker on Thursday announced double-digit increases in sales and operating profit for April-December. Kose gained 3.06% after the cosmetics maker announced brisk earnings. By contrast, Nintendo plunged 9.19% after the game maker revised down on Thursday its global sales target for the Nintendo Switch console for fiscal 2018. Zozo tumbled 4.70% after the operator of online fashion marketplace Zozotown lowered profit forecasts for the year to March 2019.
China stocks were higher after the close on Friday after strong gains in the Software & Computer Services, Technology, and Technology Hardware & Equipment sectors. The continental index Shanghai Composite rose by 1.30% to hit a new 1-month high, while the SZSE Component index added 2.74%. The best performers of the session were EGing Photovoltaic Technology and Beijing Jingyuntong Technology, which rose by 10.17% and 10.06%, respectively. Strong performance had also Jiangsu Changjiang Electronics Technology, which was up by 10.01%.
Hong Kong’s index Hang Seng was up by 0.4% to 27,642.85 points, while the Hang Seng China Enterprises index rose by 0.3%. Shares of China BlueChemical jumped as much as 11.2% after the company said it expects strong growth in 2018 earnings, while Evergrande Health Industry Group rose by 7% after announcing its plan to buy a Swedish supercar company.
South Korean stocks shed early gains to end lower on Friday as factory activity shrank across Asia, while lackluster China data offset optimism over trade deal between Beijing and Washington. The index Kospi closed down by 1.39 points, or 0.06%, at 2,203.46 points. For the week, the benchmark index rose by 1.2%, extending its rally to a fourth week, the longest successive weekly gains in 15 months.
European markets mid-session recap
The German index DAX 30 is up by 11 points to 11,184.17 points at 9:30 GMT. Automakers BMW, Daimler and Volkswagen were up 1-2% after Morgan Stanley upgraded the region’s industry to attractive. Deutsche Bank fell over 2% despite narrowing its Q4 loss.
The French index CAC 40 was up 5 points, or 0.10%, to 4,997.75 points at mid-session. Automaker Renault rose about 1% and Peugeot advanced 1.6% after Morgan Stanley upgraded the region’s industry to attractive. Outdoor advertising company JCDecaux soared 8.5% after its Q4 2018 adjusted organic revenue grew 5.4%. Residential property firm Vonovia declined slightly after announcing it has successfully disposed of its 16.8 million Deutsche Wohnen shares in the market. Advertising and public relations company Publicis Groupe gained about 1% as it bought the remaining 24.9% Blue 449 shares from M&C Saatchi in the UK.
British stocks continue their rally. The index FTSE 100 is up by 0.62% to 7,011.93 points at 9:45 GMT. Banks and mining shares were the top boosts to the FTSE 100 as signs of an impending deal helped the sectors most sensitive to the global economy. TalkTalk shares sank by 7.8% to a more than 7-month low after the broadband firm said full-year earnings would fall short of expectations due to higher costs from attracting more customers and changing its accounting standard. The stocks of Glencore fell 0.6%, among a handful of blue-chip losers, after Katanga Mining said the Democratic Republic of Congo asked it to suspend a project.
Wall Street pre-session recap
Wall Street stock index futures pointed to a higher open on Friday morning with the corporate release set to take center stage alongside the release of nonfarm payrolls data.
As of 4:50 a.m. ET, Dow futures traded 24 points higher, indicating a positive open of 44.33 points. S&P 500 futures were also in positive territory while Nasdaq futures suggested a lower open.
The markets will focus on the employment report, which will be out at 8.30 a.m. ET. Analysts are unsure what to expect, in the wake of the recent government shutdown. There is also an ISM index due out at 10 a.m. ET.