SINGAPORE — Asia-Pacific stocks traded higher on Thursday after Wall Street rallied and as investors retreated from tensions sparked by the controversial visit of U.S. House Speaker Nancy Pelosi, Taiwan.
Hong Kong’s Hang Seng index jumped 2% and the Hang Seng Tech index jumped 3.16%.
Alibaba shares jumped about 5% ahead of its earnings results later Thursday.
The Chinese e-commerce giant could see its revenue drop for the first time, according to the average analyst forecast on Refinitiv. But that could be the floor for Alibaba as revenue is expected to improve going forward.
Shares of Meituan also rose around 3.67%, while JD.com gained 5.4%.
Pelosi met Taiwan President Tsai Ing-wen on Wednesday amid warnings from Beijing. Pelosi has since left the self-governing island that China considers a runaway province to continue his Asia tour.
Mainland Chinese markets fell for two consecutive sessions, but rose on Thursday. The Shanghai Composite added 0.62% and the Shenzhen Component climbed 0.63%.
“Historically, markets tend to move quite quickly on events like these, and you can see that today markets have already started to rebound quite strongly,” said Vey-Sern Ling, chief executive of UBP, to CNBC’s “Street Signs Asia”. ” Thursday.
Despite geopolitical risks, radiation concerns in the United States and potential Covid outbreaks, there are plenty of catalysts in the Chinese market, Ling said. He cited well-controlled inflation and a possible recovery in consumption as examples.
Elsewhere in Asia, Japan’s Nikkei 225 rose 0.54%, while the Topix index was flat.
The Kospi in South Korea gained 0.44% and the Kosdaq advanced 1.11%.
In Australia, the S&P/ASX 200 gained 0.18%.
MSCI’s broadest Asia Pacific ex-China equity index rose 0.73%.
DBS, Singapore’s largest bank, reported net profit of 1.82 billion Singapore dollars ($1.32 billion), the second highest in history, the bank said in a press release. That’s more than Singapore’s average forecast of $1.7 billion, according to Refinitiv data.
Shares of the bank fell 1.05%, while the broader index was roughly flat.
A Reuters report citing a single source said the world’s largest battery maker, CATL, will continue to work to provide lower-cost lithium-iron batteries to Ford Motor. CATL will also produce batteries in North America by 2026, according to Wednesday’s report.
Bloomberg News reported on Tuesday that CATL is delaying its decision on a plant in North America.
CATL shares slid 0.66% on Thursday.
Overnight in the US, the Dow Jones Industrial Average and S&P 500 each gained more than 1%, while the Nasdaq Composite rose 2.59%, led by tech stocks.
A better-than-expected Services PMI for July gave investors confidence amid worries about a US recession.
Currencies and oil
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 106.376, higher than at the start of the week.
The Japanese yen was trading at 133.75 to the dollar, weaker than levels seen earlier this week. The Australian dollar was at $0.6949.
Oil futures rose slightly on Thursday after Brent crude came in 3.7% lower and U.S. crude fell 4% on Wednesday following U.S. data showing that crude and oil inventories gasoline rose unexpectedly.
U.S. crude rose 0.43% to $91.05 a barrel, while Brent crude gained 0.38% to $97.15 a barrel.