Asian stocks bounce back after US, China tensions ease

Asian stocks bounced back on the reports that US and China are pushing for negotiations in a trade war that is being deemed by leaders around the world as futile.

The markets judged that the fears were overblown as US Authorities backed off after the Chinese introduced tariffs on key US Exports.

Tokyo equities led the gainers, climbing 1.5 percent after demand for yen fell amidst positive sentiment in the market.

In Asian trade Thursday, the dollar fetched 106.90 yen, up from 106.82 yen in New York and 106.56 yen in Tokyo on Wednesday.

Seoul added 1.2 percent and Sydney gained 0.4 percent.

Hong Kong and Shanghai were both closed for public holidays.

The rally came on the back of US equities closing the day on positive note. Wall Street was relatively bullish on the news of evaporating trade war tensions.

Traders have been spooked by tit-for-tat accusations and measures between China and the United States that some fear could lead to a full-blown trade war between the world's top two economies.

The Dow traded in 800 points range between its session low and peak before finishing with a gain of one percent at 24,264.30.

Analysts said the catalyst for the turnaround was comments by recently appointed White House economic advisor Larry Kudlow, who suggested President Donald Trump's strident approach to China was a negotiating tactic to win concessions.

European markets rallied in early trade, with London gaining 1.4 percent, Frankfurt jumping 1.6 percent and Paris adding nearly 1.5 percent.

Markets around 07:30 GMT

Tokyo - Nikkei 225: UP 1.5 percent at 21,646.42 (close)

Hong Kong - Hang Seng: 29,518.69 (Wednesday close)

Shanghai - Composite: 3,131.84 (Wednesday close)

Dollar/yen: UP at 106.90 yen from 106.83 at 0230 GMT

Euro/dollar: DOWN at $1.2261 from $1.2281 at 0230 GMT

Pound/dollar: DOWN at $1.4055 from $1.4084 at 0230 GMT 

Oil - Brent North Sea: UP 4 cents at $68.28 per barrel

Oil - West Texas Intermediate: UP 2 cents at $63.56 per barrel

New York - Dow: UP 1.0 percent at 24,264.30 (close)

London - FTSE 100: UP 1.4 percent at 7,134.47 points

*Quotes were contributed by APP/AFP