Asian Shares Mostly Higher On Trade Deal Optimism, China Trade Data

(RTTNews) - Asian shares ended mostly higher on Friday as investors parsed China's April trade data and looked ahead to crucial Sino-U.S. talks scheduled for this weekend.

Underlying sentiment was supported by a breakthrough in the U.S.-U.K. trade deal announced on Thursday and reports that the Trump administration is weighing plans to lower China tariffs to as low as 50 percent.

Treasuries were little changed after yields surged in the previous session. The dollar eyed a weekly rise as the U.S. trade deal with Britain fueled guarded optimism for progress in tariff talks with other countries.

Gold recovered some ground after two days of sharp losses. Crude prices extended gains after rising around 3 percent on Thursday on hopes for a breakthrough in upcoming talks between the United States and China, the world's two largest oil consumers.

China's Shanghai Composite index dropped 0.30 percent to 3,342 despite upbeat trade data, with April exports rising 8.1 percent in dollar terms compared with a year earlier and imports shrinking 0.2 percent.

Hong Kong's Hang Seng index edged up by 0.40 percent to 22,867.74 after Trump said he believed there will be tangible progress in Sino-U.S. trade talks.

Japanese markets led regional gains to hit over one-month high on optimism around ongoing trade talks with the U.S.

The Nikkei average jumped 1.56 percent to 37,503.33 while the broader Topix index settled 1.29 percent higher at 2,733.49. Automakers Toyota, Honda and Nissan climbed 2-3 percent.

Seoul stocks fluctuated before ending on a flat note. The Kospi average finished marginally lower at 2,577.27, snapping its three-day winning streak as battery and bank stocks succumbed to profit taking.

Australian markets eked out modest gains, led by banks. The benchmark S&P/ASX 200 rose 0.48 percent to 8,231.20 while the broader All Ordinaries index closed 0.49 percent higher at 8,462.60.

Investment bank Macquarie rallied 3.8 percent after reporting a rise in annual profit due to a well-timed asset sale. Lender Westpac added 2.3 percent, recovering some ground after suffering heavy losses earlier this week.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index jumped 1.11 percent to 12,605.07.

U.S. stocks ended firmly in positive territory overnight as President Trump unveiled the framework of a trade agreement with the U.K., the first major agreement since the U.S. imposed widespread tariffs earlier this year, and signaled upcoming talks with China this week would be more substantial than initially thought.

The tech-heavy Nasdaq Composite jumped 1.1 percent, while the Dow and the S&P 500 both rose about 0.6 percent.