Asian markets posted mixed gains in trade on Friday, driven by gains in technology stocks, after plans for an upcoming meeting between US President Donald Trump and his Chinese counterpart Xi Jinping eased trade war concerns. The MSCI Asian Shares Index jumped about 0.5%, resuming a strong rally since the start of the year that pushed it to record levels. Technology stocks led the gainers, with shares of Korean chipmaker SK Hynix rising as much as 6.9%. Optimism extended to US and European stock futures, supported by gains in the technology sector. In New York, Intel shares rose in after-hours trading after positive earnings expectations. In China, semiconductor companies also led gains amid a renewed focus from Beijing on improving technical self-sufficiency, and the “Star 50” index of technology companies rose more than 3%. In commodity markets, oil prices fell ahead of the release of US inflation data, while the dollar index rose slightly and gold fell. The upward surge came against the backdrop of the White House’s announcement of an upcoming meeting between Trump and Xi Jinping next week, on the sidelines of the APEC Asia-Pacific Economic Cooperation summit. It will be the first meeting between the two leaders since Trump returned to power, boosting hopes of easing recent trade tensions. Hebei Chen, an analyst at Vantage Markets in Melbourne, said: “Confirmation of the meeting between Trump and Xi gave the markets a clear reason for relief today. Not necessarily because of hopes for improved relations, but because any progress is better than stagnation, and the chance of reaching an agreement before the end of the ceasefire has become more realistic.” Also read: An upcoming meeting between Trump and Xi next Thursday. Beijing promises to accelerate technological independence within 5 years. Chinese officials have promised a “significant increase” in the country’s capabilities to achieve self-reliance in science and technology over the next five years, according to a statement issued Thursday after a four-day meeting of the Central Committee of the Communist Party of China. While the statement did not bring any significant surprises to investors, it confirmed Beijing’s commitment to supporting the technology sector at a time of escalating geopolitical competition. Read more: China puts the tech industry at the heart of its new five-year plan. “The gains recorded by Chinese semiconductor companies in recent months partly reflect their growing appeal to investors … As the pace of trade accelerates and the economic cycle picks up, we will see greater interest from individual investors, and even from outside the technology sector,” Felix Li, an equity analyst at Morningstar, told Bloomberg TV. US pressure on Canada On the other hand, the Canadian dollar fell after US President Donald Trump announced that his country would suspend all trade talks with Canada, citing an anti-tariff announcement funded by the Ontario government. In global markets, investors’ eyes are on the delayed US inflation report, due on Friday. Overnight asset moves signal cautious optimism that inflation data will not be a major stumbling block for global markets, which have posted strong gains in recent weeks. U.S. Treasury bond yields were largely steady in Friday trading, ending a three-day streak of gains, and 10-year bond yields rose about 5 basis points to a record 4%.
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