Asia stocks rebound from three-and-a-half month lows as trade fears ease

Asian stocks rebounded from a 3-1/2-month low on Wednesday as a slight softening in rhetoric from U.S. President Donald Trump eased worries about the U.S.-China tariff war, and on expectations that Beijing could unveil more economic stimulus.


In Europe, the pan-region Euro Stoxx 50 futures rose 0.24% in early trade, Germany's DAX futures gained 0.25% and FTSE futures were up 0.3%.

Shares in Asia were led by strong gains in Chinese equities, which rebounded after two days of losses.

"Chinese stocks are mounting a rebound as they had been oversold in recent sessions. Sentiment is also better as President Trump seems to be desiring a compromise," said Kota Hirayama, senior emerging markets economist at SMBC Nikko Securities in Tokyo.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.6%. The index had fallen to its lowest level since the end of January the previous day as the Sino-U.S. trade conflict intensified. Beijing on Monday imposed a tariff hike on U.S. goods following Washington's decision last week to hike its levies on Chinese imports.

However, Trump on Tuesday said he had a "very good" dialogue with China and insisted talks between the world's two largest economies had not collapsed. Wall Street shares were able to bounce overnight in wake of Trump's comments. (N)

The Shanghai Composite Index advanced 1.4%, shrugging off concerns about economic growth following weaker-than-expected Chinese data released on Wednesday.

China on Wednesday reported surprisingly weaker growth in retail sales and industrial output for April, adding pressure on Beijing to roll out more stimulus as the trade war with the United States escalates.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.6%. The index had fallen to its lowest level since the end of January the previous day as the Sino-U.S. trade conflict intensified. Beijing on Monday imposed a tariff hike on U.S. goods following Washington's decision last week to hike its levies on Chinese imports.

However, Trump on Tuesday said he had a "very good" dialogue with China and insisted talks between the world's two largest economies had not collapsed. Wall Street shares were able to bounce overnight in wake of Trump's comments. (N)

The Shanghai Composite Index advanced 1.4%, shrugging off concerns about economic growth following weaker-than-expected Chinese data released on Wednesday.

China on Wednesday reported surprisingly weaker growth in retail sales and industrial output for April, adding pressure on Beijing to roll out more stimulus as the trade war with the United States escalates.

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