Tokyo’s Nikkei 225 index gained 0.4 percent to 21,528.25 after a gauge of manufacturing activity fell to a three-year low, suggesting Japanese economic growth is slowing. The Shanghai Composite Index advanced 0.4 percent to 2,771.28.
Sydney’s S&P-ASX 200 added 0.6 percent to 6,136.10 while Hong Kong’s Hang Seng gained 0.5 percent to 28,664.11. Benchmarks in New Zealand, Taiwan and Southeast Asia also advanced. India’s Sensex shed 0.1 percent to 35,721.75.
Investors looked ahead to talks in Washington on a fight over Beijing’s technology ambitions ahead of a March 2 deadline for a possible U.S. tariff hike. Neither government has released details but companies saw the decision to hold more talks as a sign of progress.
President Donald Trump told reporters Tuesday the talks were “going very well.” Trump has suggested he might postpone the tariff hike on $200 billion of goods but made no firm commitment.
The U.S. Federal Reserve reassured investors by releasing minutes of its latest meeting saying, as expected, it will be patient with interest rate hikes amid economic uncertainty.
Lack of details in the Fed’s report “leaves the region to await further US-China developments,” said Jingyi Pan of IG in a report. After markets rose on Trump’s positive comments, she said, “one should not be surprised” to see more gains.
The benchmark Standard & Poor’s 500 index gained 0.2 percent to 2,784.70. The Dow Jones Industrial Average added 0.2 percent to 25,954.44. The Nasdaq composite rose 0.03 percent to 7,489.07.
Germany’s DAX, the FTSE 100 in London and France’s CAC 40 all gained 0.3 percent.
JAPANESE MANUFACTURING: The preliminary reading on a monthly purchasing managers’ index fell to 48.5 on a 100-point scale from January’s 50.3. It was the second unusually large monthly decline and the PMI’s lowest level since October 2016. “Such large falls are rare and suggest that the economy is losing momentum rapidly,” said Marcel Thieliant of Capital Economics in a report.
ENERGY: Benchmark U.S. crude gained 27 cents to $57.43 per barrel in electronic trading on the New York Mercantile Exchange.
The contract gained 71 cents on Wednesday to $57.16. Brent crude, used to price international oils, added 12 cents to $67.20 per barrel in London. It gained 63 cents the previous session to $67.08.
CURRENCIES: The dollar edged down to 110.82 yen from Wednesday’s 110.85 yen. The euro gained to $1.1341 from $1.1336.