Asian markets extend gains, with Chinese shares up more than 1%, after Wall Street rally

A person stands in front of an electronic stock board showing Japan’s Nikkei index at a securities firm on Oct 20, in Tokyo. (AP)

BANGKOK, Oct 21, (AP): Asian markets advanced on Tuesday, with Japan’s benchmark creeping closer to the symbolically important 50,000 level for the first time as lawmakers chose conservative hardliner Sanae Takaichi to become the country’s first female prime minister. The Nikkei 225 in Tokyo gave up earlier, bigger gains after Takaichi prevailed in a vote in Japan’s parliament, rising just 0.3% to 49,316.06.

She is expected to support market-friendly policies such as low interest rates and more government spending. The US dollar rose to 151.31 Japanese yen from 150.75 yen. If Takaichi gets her way in slowing interest rate increases by the Bank of Japan, the yen is likely to remain relatively weak against the dollar. That will hinder the central bank’s efforts to curb inflation, which now stands above its target rate of about 2%.

Hong Kong’s Hang Seng added 1.2% to 26,164.64 and the Shanghai Composite index was up 1.3% at 3,913.34. Expectations that US President Donald Trump will meet with Chinese President Xi Jinping later this month during a regional summit have raised hopes for an easing of trade tensions between the world’s two biggest economies.

Chinese Communist Party leaders are meeting this week to set a policy blueprint for the next five years In South Korea, the Kospi gained 0.2% to 3,8223.84, while Australia’s S&P/ASX 200 climbed 0.7% to 9,094.70. Taiwan’s Taiex rose 0.2%. US stocks rallied on Monday to the cusp of their records. The S&P 500 climbed 1.1%, pulling within 0.3% of its all-time high set earlier this month. The Dow Jones Industrial Average jumped 1.1% and the Nasdaq composite gained 1.4%.

Apple rose 3.9% to its own record high amid optimism about demand for its latest iPhone design. It was the strongest force lifting the S&P 500. Cleveland-Cliffs jumped 21.5% after the steel company’s CEO, Lourenco Goncalves, said it would provide details soon about a potential deal with a major global steel producer that could mean bigger profits.

He also said his company has potentially found signs of rare earths at sites in Michigan and Minnesota. Such materials have grabbed the global spotlight after China recently put curbs on the export of its own rare earths, a move that Trump characterized as hostile. Trump’s ensuing threat of higher tariffs triggered big swings for Wall Street, but the concerns eased a bit after Trump said such high tax rates on Chinese imports are unsustainable.