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Asian Markets Rise As Trump Delays China Tariffs


Asian stock markets are higher on Wednesday as worries about U.S.-China trade tensions eased after the Trump administration said it will delay imposing tariffs on certain Chinese products from September 1 and also removed some products from the tariff list entirely, based on health, safety, national security and other factors.

The Australian market is advancing following the positive cues from Wall Street. Upbeat earnings results from healthcare giant CSL also lifted stocks.

The benchmark S&P/ASX 200 Index is adding 26.00 points or 0.40 percent to 6,594.50, after rising to a high of 6,600.70 earlier. The broader All Ordinaries Index is up 27.20 points or 0.41 percent to 6,675.30. Australian stocks closed lower on Tuesday.

The big four banks are mostly higher. National Australia Bank, Westpac and ANZ Banking are higher in a range of 0.2 percent to 0.7 percent, while Commonwealth Bank is edging down 0.1 percent.

National Australia Bank reported third-quarter cash earnings that was flat with the year-ago quarter and said it expects more provisions with its full-year results.

The major miners are notably higher. Fortescue Metals is gaining almost 4 percent, Rio Tinto is rising more than 3 percent and BHP Group is advancing more than 1 percent.

Oil stocks are up after crude oil prices gained 4 percent overnight. Santos and Woodside Petroleum are advancing more than 1 percent each, while Oil Search is rising 0.7 percent.

Bucking the trend, gold miners are weak after gold prices declined overnight. Evolution Mining is losing more than 5 percent and Newcrest Mining is lower by more than 2 percent.

CSL reported a 11 percent increase in full-year profit on higher revenues. The healthcare giant's shares are rising more than 6 percent.

Tabcorp Holdings reported a more than twelve-fold surge in full-year profit in its first full-year of combined operations with Tatts Group, and increased its final dividend. However, the wagering giant's shares are down 0.2 percent.

Aveo Group has agreed to be acquired by Brookfield Asset Management for A$1.27 billion and its board has unanimously recommended the offer. The retirement home operator's shares are gaining almost 6 percent.

On the economic front, Australia will see August results for the consumer confidence index from Westpac Bank as well as second-quarter data on wage prices.

In the currency market, the Australian dollar is higher against the U.S. dollar on Wednesday. The local currency was quoted at $0.6793, compared to $0.6761 on Tuesday.

The Japanese market is rising and the safe-haven yen weakened following the overnight gains on Wall Street. Data showing a surprise rebound in Japan's core machinery orders in June also boosted sentiment.

The benchmark Nikkei 225 Index is adding 161.61 points or 0.79 percent to 20,617.05, after touching a high of 20,697.42 in early trades. Japanese shares hit a one-week low on Tuesday.

The major exporters are higher as the yen weakened. Mitsubishi Electric is rising more than 1 percent, Canon is advancing almost 1 percent, Sony is higher by 0.6 percent and Panasonic is up 0.2 percent.

In the tech space, Tokyo Electron is gaining more than 2 percent, while Advantest is lower by 0.2 percent.

Market heavyweight SoftBank is rising more than 2 percent and Fast Retailing is adding almost 1 percent. In the auto sector, Honda Motor is rising almost 1 percent and Toyota Motor is advancing more than 1 percent.

Among oil stocks, Japan Petroleum is gaining more than 8 percent and Inpex is rising almost 3 percent after a surge in crude oil prices overnight.

Among the other major gainers, Screen Holdings is gaining almost 7 percent, Taiyo Yuden is higher by more than 6 percent and TDK Corp. is rising almost 5 percent.

On the flip side, Credit Saison is losing almost 2 percent.

On the economic front, the Cabinet Office said that the total value of core machine orders in Japan soared a seasonally adjusted 13.9 percent on month in June, coming in at 960.3 billion yen. That blew away forecasts for a decline of 1.0 percent following the 7.8 decline in May.

In the currency market, the U.S. dollar is trading in the lower 106 yen-range on Wednesday.

Elsewhere in Asia, Taiwan is advancing more than 1 percent, while South Korea and Shanghai are adding almost 1 percent each. Singapore, Hong Kong, Indonesia, and Malaysia are also higher, while New Zealand is edging lower.

On Wall Street, stocks closed higher on Tuesday after U.S. Trade Representative Robert Lighthizer offered a temporary reprieve from concerns about the U.S.-China trade war by announcing that a 10 percent tariff set to take effect on September 1st should be delayed until December 15th for certain products. Additionally, the USTR announced certain unidentified products will be removed from the tariff list entirely based on health, safety, national security and other factors.

The Dow jumped 372.54 points or 1.4 percent to 26,279.91, the Nasdaq soared 152.95 points or 2 percent to 8,016.36 and the S&P 500 surged up 43.23 points or 1.5 percent to 2,926.32.

The major European markets showed a significant rebound after coming under pressure earlier on Tuesday. While the French CAC 40 Index surged up by 1 percent, the German DAX Index climbed by 0.6 percent and the U.K.'s FTSE 100 Index rose by 0.3 percent.

Crude oil prices shook off early weakness and moved sharply higher on Tuesday after U.S. Trade Representative Robert Lighthizer announced a delay in imposing new tariffs on certain Chinese products. WTI crude for September soared $2.17 or 4 percent to $57.10 a barrel.

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