Asian shares mostly higher; Japan's Nikkei up on weaker yen

Youkyung Lee, The Associated Press</span>
Published Friday, July 13, 2018 7:17AM EDT

SEOUL, Korea, Republic Of -- Asian shares are mostly higher, rebounding from jitters over the U.S.-China trade disputes for a second straight day.

KEEPING SCORE: Japan's Nikkei 225 jumped 1.9 per cent to 22,597.35, helped by a weakening in the yen against the U.S. dollar, which helps blue chip manufacturers. South Korea's Kospi advanced 1.1 per cent to 2,310.90 and Hong Kong's Hang Seng index added 0.2 per cent to 28,546.91. But the Shanghai Composite Index fell 0.2 per cent to 2,831.15. Australia's S&P-ASX 200 was flat at 6,268.40. Stocks in Singapore, Taiwan and other Southeast Asian markets were higher.

CHINA TRADE DATA: China's June trade grew by double digits amid mounting tension with Washington but Beijing warned its exporters face "rising instabilities and uncertainties." Exports rose 11.3 per cent over a year earlier to $216.7 billion, down from May's 12.6 per cent growth, customs data showed Friday. Imports expanded by 14.1 per cent to $175.1 billion, down from the previous month's 26 per cent.

U.S.-CHINA TRADE: China has yet to give details on what kind of "firm and forceful measures" it would use to respond to the fresh round of potential tariff hikes on $200 billion of goods announced by the U.S. on Tuesday. But Beijing stepped up pressure on Washington by suggesting that U.S. companies lobby American leaders. The U.S. and China are yet to resume negotiations over the dispute that led to tariff hikes on each other's goods.

ANALYST'S TAKE: Despite the recent escalation in trade battles, "the sky hasn't fallen just yet as optimism crept back into the market," said Stephen Innes, OANDA's head of trading in Asia Pacific region. "The broader market continues to remain in wait and see mode for further details on how China might retaliate on trade."

WALL STREET: U.S stocks finished higher on Thursday led by tech companies. The S&P 500 index rose 0.9 per cent to 2,798.29. The Dow Jones Industrial Average gained 0.9 per cent to 24,924.89. The Nasdaq jumped 1.4 per cent to 7,823.92, closing at an all-time high. The Russell 2000 index of smaller-company stocks added 0.4 per cent to 1,690.28.

OIL: Benchmark U.S. crude lost 14 cents to $70.19 per barrel in electronic trading on the New York Mercantile Exchange. The contract dipped 0.1 per cent to settle at $70.33 a barrel on Thursday. Brent crude, used to price international oils, fell 45 cents to $74.00 per barrel in London. It finished 1.4 per cent higher at $74.45 per barrel on Thursday.

CURRENCIES: The dollar rose to 112.67 yen from 112.52 yen. The euro fell to $1.1634 from $1.1672.

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