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Asian Shares Mostly Higher As Trade Worries Ease


Asian stocks ended mostly higher on Tuesday even as Chinese and Hong Kong shares fell slightly on profit taking after the People's Bank of China unveiled a major reform to its system of benchmark interest rates.

Underlying sentiment remained underpinned by a possible breather in the U.S.-China trade dispute after the United States once again delayed a full ban on doing business with Huawei.

Chinese shares slipped into the red after a strong rally in the previous session. The benchmark Shanghai Composite Index edged down 0.1 percent to 2,880, as China lowered its new lending reference rate slightly in an effort to lower corporate borrowing costs. Hong Kong's Hang Seng Index eased 0.2 percent to 26,231.54.

Meanwhile, Japanese share rose, with Apple suppliers and chip makers pacing the gainers after U.S. President Donald Trump said that Apple CEO Tim Cook has made a "very compelling argument" against trade tariffs.

The Nikkei 225 Index climbed 114.06 points, or 0.6 percent, to 20,677.22, while the broader Topix closed 0.8 percent higher at 1,506.77.

Apple suppliers Taiyo Yuden and TDK Corp. gained 1.6 percent and 0.7 percent, respectively. Semiconductor equipment maker Screen Holdings soared 5.4 percent and Tokyo Electron advanced 1.4 percent after the U.S. Philadelphia semiconductor Index surged up 1.9 percent on Monday

Australian markets rose for a second straight session on reports that China and Germany will introduce measures to stimulate their slowing economies.

The benchmark S&P/ASX 200 Index jumped 77.60 points, or 1.2 percent, to 6,545, while the broader All Ordinaries Index ended up 76.90 points, or 1.2 percent, at 6,627.40.

Commonwealth Bank advanced 1.1 percent, and mining giant BHP Group edged up slightly after announcing record dividend payout.

Energy stocks extended gains from the previous session after oil prices rose nearly 2 percent on Monday following a weekend attack on a Saudi oil facility.

Beach Energy shares jumped 9 percent, while Oil Search rose 1.1 percent after more than doubling its half-year profit.

On the other hand, gold stocks extended declines after gold prices posted their biggest daily decline in a month in the previous session to fall below a key psychological level of $1,500 an ounce. Newcrest Mining shed 0.8 percent, Northern Star declined 1.8 percent and Regis Resources lost 2.2 percent.

In economic news, the minutes of the RBA meeting held in August showed that the central bank is willing to consider further monetary easing if needed to underpin sustainable growth and inflation.

Seoul stocks rose sharply on growing hopes of stimulus measures by major economies, such as Germany and China. While China's central bank took a long-awaited step in interest-rate reform, Germany pledged a 50 billion-euro stimulus package in case of a recession.

The benchmark Kospi rallied 20.35 points, or 1.1 percent, to 1,960.25, extending gains for a second straight session.

Tech heavyweight Samsung Electronics surged up 2 percent, while top portal operator Naver Corp. soared 4.7 percent.

New Zealand shares rallied, with the benchmark S&P/NZX 50 Index climbing 101.36 points, or 1 percent, to 10,803.84 after long-dated bond yields shot higher on reports that Germany was entertaining the use of fiscal stimulus. Dairy products maker a2 Milk jumped 3.8 percent.

Overnight, U.S. stocks rose sharply as the Trump administration downplayed concerns of a possible recession and once again delayed restrictions on Chinese tech giant Huawei for another 90 days.

The Dow Jones Industrial Average surged up 1 percent, the tech-heavy Nasdaq Composite rallied 1.4 percent and the S&P 500 advanced 1.2 percent.

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