Asia stocks gain after Trump, EU agree to work on lowering tariffs

Pedestrians walk in front of an electronics stock indicator in Tokyo, on June 4, 2018.
Pedestrians walk in front of an electronics stock indicator in Tokyo, on June 4, 2018. PHOTO: AFP

SYDNEY (BLOOMBERG) - Asian stocks climbed on Thursday (July 26), tracking gains in US shares, after US President Donald Trump reached an agreement with European Commission President Jean-Claude Juncker aimed at averting a transatlantic trade war. The yen climbed and the US dollar retreated.

Equities in Tokyo and Seoul advanced after the S&P 500 Index rose to within 1 per cent of a fresh record high, with the two sides agreeing to suspend new tariffs while negotiating over trade.

Japan's Topix index rose 0.7 per cent as of 9.02am in Tokyo. Australia's S&P/ASX 200 Index fell 0.6 per cent while South Korea's Kospi index rose 0.5 per cent.

Futures on Hong Kong's Hang Seng Index gained 0.3 per cent.

Trump's meeting with Juncker came amid a raft of earnings from US companies, some of which reflected the impact of recent trade threats from the White House.

The Bloomberg Dollar Spot Index held losses after sinking 0.5 per cent to the lowest in almost seven weeks. The euro bought US$1.1737 after advancing 0.4 per cent.

The yen gained 0.2 per cent to 110.78 per dollar while the offshore yuan rose 0.2 per cent to 6.7497 per dollar.

West Texas Intermediate crude rose 0.4 per cent to US$69.56 a barrel.