CANBERA (dpa-AFX) - Asian stocks ended on a firm note Thursday as comments from U.S. Treasury Secretary Steven Mnuchin generated optimism about a potential U.S.-China trade deal.
U.S. Treasury Secretary Steven Mnuchin told CNBC the U.S. and China had nearly completed a deal before talks broke down last month.
However, he didn't shed any light on the sticking points to achieving the final 10 percent and refused to speculate on whether a deal would be completed.
Separately, U.S. President Donald Trump voiced optimism over the possibility of a trade agreement with China but said he is still considering imposing 'very substantial' tariffs on all Chinese imports if the two countries were unable to reach a deal during the G20 meeting that starts Friday.
The South China Morning Post reported, citing sources that the U.S. and China have agreed to a tentative truce in their trade dispute that would help avert the next round of tariffs on an additional $300 billion of Chinese imports.
Chinese shares rose as investors digested positive industrial profits data and signs of a truce in the Sino-U.S. trade war. China's Shanghai Composite index ended up 20.51 points or 0.69 percent at 2,996.79 while Hong Kong's Hang Seng index jumped as much as 1.42 percent to 28,621.42.
Japanese shares rose sharply and the dollar hit one-week highs against the yen as investors cheered signs of a truce in the Sino-U.S. trade war.
The Nikkei average jumped 251.58 points or 1.19 percent to 21,338.17 while the broader Topix index index closed 1.23 percent higher at 1,553.27.
China-exposed companies surged, with Fanuc Corp rising 1.7 percent and Yaskawa Electric rallying as much as 4.6 percent. Tokyo Electron, TDK Corp and Daikin Industries surged 3-5 percent.
Japan Display shares soared 18.3 percent after reports that Apple Inc is considering investing $100 million in the troubled display maker.
In economic releases, retail sales in Japan rose a seasonally adjusted 0.3 percent month on month in May, official data showed - falling below expectations for a gain of 0.6 percent following the downwardly revised 0.1 percent drop in April.
Australian markets recovered from early losses to end modestly higher after data showed profits for China's industrial companies rose in May, bolstered by improving sales.
The benchmark S&P/ASX 200 rose 25.80 points or 0.39 percent to 6,666.30 while the broader All Ordinaries index ended up 26.90 points or 0.40 percent at 6,743.
Robust commodity prices helped lift miners, with heavyweights BHP and Rio Tinto climbing 2-3 percent. Smaller rival Fortescue Metals Group jumped 5.5 percent. Higher oil prices boosted energy stocks, with Origin Energy and Oil Search climbing more than 1 percent.
Real estate stocks retreated after U.S. Treasury prices fell on Wednesday, pushing yields higher. Cromwell Property Group slumped 7.6 percent and Stockland Corp tumbled 4.5 percent.
Lender Commonwealth Bank rose 1 percent after it has been forced to review how it handles and stores customer data. The other three banks gained between 0.2 percent and 0.8 percent.
Seoul stocks rose for a second straight session, led by gains in the technology sector after flash memory maker Micron Technology beat on earnings and issued guidance that was better than many feared.
The Kospi average climbed 12.47 points or 0.59 percent to 2,134.32. Samsung Electronics rallied 1.8 percent and SK Hynix added 1.9 percent.
New Zealand shares rose modestly, with the benchmark S&P/NZX 50 index ending up 23.17 points or 0.22 percent at 10,431.22.
U.S. stocks ended mixed overnight as durable goods orders data disappointed and investors grew increasingly sceptical that a U.S.-China trade deal is in the offing.
The tech-heavy Nasdaq Composite index rose 0.3 percent in reaction to Micron Technology's better-than expected guidance while the S&P 500 edged down 0.1 percent to extend losses for the fourth straight session. The Dow ended little changed with a negative bias.
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