Stock indexes in Asia rebound as sentiment improves

Asian equity indexes rebounded on Tuesday, recovering previous losses as fears over a potential trade war between the United States and key commercial allies eased.

Tokyo's Nikkei 225 index added more than two percent in the session, above 450 points, also supported by a strengthening US dollar that pushed the USDJPY to about 106.30.

A stronger greenbacks contributes directed to Japanese exports, making their products cheaper and therefore more competitive overseas, possibly adding to their demand.

Meanwhile in South Korea, the Kospi was up by 1.30 percent, with heavyweight Samsung Electronics soaring nearly four percent, while SK Hynix added 5.20 percent.

On mainland China, the Shanghai composite grew 0.21 percent and the Shenzhen composite pushed higher 0.67 percent. Hong Kong's Hang Seng Index was up 1.40 percent. Technology and financials were among the best performing sectors.

Sydney’s S&P/ASX 200 increased 1.13 percent, with all of its components moving upwards. Energy and materials were on top of the list, adding 1.83 percent and 1.75 percent respectively.

Meanwhile in the United States, speculation over a trade war eased as President Donald Trump seemed open to lifting import tariffs on steel and aluminium if a “new and fair,” North American Free Trade Agreement (NAFTA) gets signed.

Trump wrote on Twitter: “Tariffs on Steel and Aluminum will only be lifted if new and fair North American Free Trade Agreement (NAFTA) is signed.”

In other news, House Speaker Paul Ryan reportedly showed concern about the plan of Donald Trump, outlining that it could be devastating for the economy and jeopardize recent economic gains collected from the Republican-backed tax reform.

<<< Asian Stock Indexes >>>

Australia ASX S&P +63.90 +1.07% 6,060.30

Shanghai Composite +6.36 +0.20% 3,263.28

Hong Kong Hang Seng +371.17 +1.24% 30,257.56

Japan Nikkei 225 +377.93 +1.80% 21,420.02

Taiwan TSEC 50 Index +121.16 +1.14% 10,764.06

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Ahead in the session, traders will keep an eye on factory orders for January, which are scheduled for release at 15:00 GMT.

FortFS