TOKYO: Asian stocks extended their rebound from a rough October, and headed for the biggest weekly rally since July amid hopes for trade talks and China stimulus. Sentiment proved resilient to underwhelming news from Apple Inc. that hit U.S. Nasdaq futures.
Hong Kong and Korean stocks led the advance Friday, taking gains on the MSCI Asia Pacific Index to almost 4 percent for the week. The advance came after a phone call between Presidents Donald Trump and Xi Jinping showed the door is still open for U.S.-China trade talks.
Australian equities slipped while Japanese shares posted modest gains. Ten-year Treasury yields edged higher ahead of Friday’s key U.S. jobs report and the dollar steadied. The offshore yuan was little changed.
Prospects for easing tensions between leaders of the world’s two largest economies are helping round out a week that’s seen appetite for risk assets return following the October rout in equities. Doubts remain, though, on the capacity of earnings to deliver.
Apple’s disappointing forecast for the key holiday period suggested weaker-than-expected demand for the company’s pricier new iPhones. Its shares fell more than 6 percent in after-hours trading. Before the closing bell on Wall Street, more positive earnings results had helped boost sentiment, to leave the turmoil of October behind for the moment.
In Europe Thursday, the Stoxx 600 Index advanced, with telecoms and travel companies helping lead the way. The pound held most of Thursday’s gain, the biggest since April 2017, which was driven by signals of faster interest-rate hikes and hopes for a Brexit deal.
Elsewhere, oil prices extended losses after tumbling again in New York Thursday. - Bloomberg
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