Asia Stocks Rebound Amid News U.S. Will Ease Up On Huawei
Several Asian stock markets made a rebound on Thursday following reports that U.S. President Donald Trump may announce license concessions for American companies who are still interested in business deals with China's Huawei.
According to CNBC, the Shenzhen composite added 1.413 percent, the Shanghai composite edged up 0.78 percent, and Hong Kong's Hang Seng index rose around 0.3 percent on the final trading hour.
While South Korea's Kospi lost 0.88 percent, Japan's Nikkei 225 added 0.45 percent, rounding up an overall close of 0.18 percent higher for the ex-Japan MSCI Asia index.
The rebound of some major Asian stock indexes came after the New York Times reported late Wednesday evening that Trump is expected to grant licenses for business dealings between American companies and Chinese tech giant Huawei.
The licenses will reportedly allow U.S. firms to sell supplies that are non-security sensitive to Huawei. The Chinese tech behemoth was blacklisted by Washington earlier this year and the move has since received criticism from American companies working with China's biggest tech firm.
Chinese and American delegations have kicked off another round of trade talks on Thursday in efforts to put an end to the 15-month trade war that has since affected the world's two largest economies.
Reuters reported that Trump previously insisted he wants a "big deal" with China. However, earlier reports suggested that Chinese officials aren't expecting anything big from their American counterparts.
On Monday, the U.S. Commerce Department banned 28 Chinese public security bureaus and on Tuesday, the U.S. State Department restricted visa issuance to some Chinese officials. The move has since been received with scrutiny.
Some economists noted that Washington's latest moves have soured expectations around a potential trade deal. Despite the latest antics from the White House, the Chinese government reportedly offered to increase purchases of U.S. agricultural goods.
According to the Financial Times, people with knowledge of the situation made the offer in hopes of laying out an interim deal between the two countries that should put off new tariff impositions set for October 15.
One of the insiders revealed that Chinese Vice Premier Liu He "is coming with real offers" and that Beijing is very much prepared for a de-escalation of the trade war. Furthermore, China has reportedly agreed to "all of the USDA's demands on beef, pork, and lamb."
It has yet to be revealed if Liu will lay out Beijing's offers on the table despite Washington's latest moves. It also remains to be seen if Trump will offer concessions for Huawei in line with the Chinese side's willingness to de-escalate the dispute and halt further tariffs.