TOKYO (AP) – Asian stocks were mostly on Tuesday after Wall Street rallied to the United States for a decision to give Chinese telecommunications giant Huawei another 90 days to buy equipment from US suppliers.
The decision seemed to inspire investor sentiment eager for any signs of progress in the US-China trade war.
Japanese benchmark Nikkei 225 gained 0.4% in morning trading at 20,653.93. The S&P / ASX 200 in Australia added nearly 0.7% to 6,510.40. Shares in South Korea rose 0.3% to 1,946.30, while Hong Kong's Hang Seng lost 0.2% to 26,234.85. The Shanghai Composite was slightly changed, rising less than 0.1% to 2,881.06.
On the Wall Street, the S&P 500 rose 34.97 points, or 1.2%, to 2,923.65. The industrial average "Dow onesons" rose 249.78 points, or 1%, to 26,135.79. The index briefly gained 336 points. Nasdaq, which is heavily weighted by technology stocks, rose 106.82 points or 1.3% to 8,002.81. Smaller stocks of companies also had a good day. The Russell 2000 index gained 15.21 points, or 1%, to 1.508.85.
Investors recently tried to determine whether the recession is on the horizon in the US. A key concern is that escalating and costly trade conflicts between the two largest economies in the world will hinder growth worldwide.
Earlier this month, Trump announced plans to expand tariffs on virtually all Chinese imports, many of them consumer products that were exempt from early tariffs. The tariffs have been delayed, but will eventually increase costs for US companies delivering goods from China.
Huawei has become part of the trade war, with the White House showing a willingness to use sanctions against the company as a bargaining chip. The US government blacklisted Huawei in May, considering it a national security risk, meaning US firms must not sell company technology without government approval.
"Although not unexpected, the continuation of easing of the Huawei sanctions added to easing markets earlier this week," said Ingenii Pan, IG strategic strategist in Singapore.
The benchmark crude oil fell 1 cent to $ 56.13 a barrel. Brent crude, the international standard, rose 4 cents to $ 59.78 a barrel.
The dollar rose to 106.59 yen from 106.36 yen on Monday. The euro weakened to $ 1,1087 from $ 1,1104.