(Bloomberg) — Asian stocks rose for a third day, buoyed by advances in Japan and Hong Kong, in an extension of a recent shift toward non-US assets amid uncertainties unleashed by Donald Trump.
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Hong Kong equity benchmarks gained about 2%, boosted by BYD Co. shares at a record after it unveiled a new charging system for electric cars. Japanese gauges were up more than 1% after Berkshire Hathaway Inc. increased its stakes in the country’s biggest trading houses, underscoring expectations of longer-term growth prospects.
As US stocks tipped into a correction earlier, global investors are hunting for opportunities elsewhere with Chinese and Japanese equities among the beneficiaries in recent weeks. A pivot by China toward stoking domestic consumption with Monday’s briefing, which would make the economy less vulnerable to tariffs, is helping to fuel a re-balancing.
“Market-friendly rhetoric from Beijing provides a more favorable backdrop for Asian stocks today, and the news of increased investment from the likes of Mr. Warren Buffett will certainly help to a degree,” said Homin Lee, senior macro strategist at Lombard Odier. “While the nervous wait for Mr. Trump’s additional trade restrictions and export controls continue,” strong inflows into Hong Kong from mainland buyers will anchor sentiment, he added.
Gold climbed to touch a fresh all-time high above $3,000 an ounce. US assets traded in a tight range with the yield on 10-year Treasuries slipping by one basis point while the Bloomberg Dollar Index gained by 0.2%. US equity futures retreated in Asia after the S&P 500 Index closed up 0.6%.
China’s world-beating stock rally may get a fresh catalyst from a slew of tech earnings, with Xiaomi Corp. and Tencent Holdings Ltd. set to report this week. BYD’s tech advancement also reinforces a narrative of the global competitiveness of Chinese companies.
President Trump said Chinese leader Xi Jinping would visit Washington soon, amid brewing trade tensions between the world’s two largest economies.
In Japan, financial stocks also gained along with elevated yields ahead of the Bank of Japan’s decision on Wednesday. The central bank is expected to keep the policy rate at 0.5%, according to economists surveyed by Bloomberg. The yen dropped for a third day, inching toward the 150 mark again.
