HONG KONG (AP) – Asian stocks drifted mostly higher Friday in quiet trading as traders and investors prepared for the start of the lunar new year holiday across much of the region.
KEEPING SCORE: Japan’s benchmark Nikkei 225 index climbed 0.3 percent to 19,467.40, helped by the dollar’s surge against the Japanese yen, while Hong Kong’s Hang Seng slipped 0.1 percent to 23,360.78. The S&P/ASX 200 in Australia rose 0.8 percent to 5,714.00. Markets in China, South Korea, Taiwan were closed while Malaysia was open only for the morning session.
LUNAR NEW YEAR: Many Asian countries have begun holidays of varying lengths, curtailing trading across much of the region. Mainland China will take the longest break, shutting down for an entire week.
TRUMP: With little in the way of market-moving events expected in Asia, investors were focusing on the latest moves by U.S. President Donald Trump. He plans to slap a 20 percent tax on imports from Mexico to pay for his promised border wall, in an announcement that left markets uncertain about what it means for trade. Trump’s joint press conference with visiting British Prime Minister Theresa May scheduled for later Friday could also provide trading catalysts, especially for the pound.
QUOTEWORTHY: “What worries me is that Mexico accounts for only around 8 percent of American’s trade deficits,” said Margaret Yang, an analyst at CMC Markets in Singapore. “Whereas U.S.’s trade deficit with the Pacific Rim is approximately six times larger than that of Mexico. His hard stance toward Mexico could give us a hint of his future trade policies against the Pacific Rim countries, especially China.”