Futures tipped a higher open for Asia Pacific markets on Thursday following Wall Street’s rebound after initially dropping on additional tariffs announced by China.
The Dow Jones industrial average rose 0.96 percent, or 230.94 points, to close at 24,264.30 — a bounce of more than 700 points from its session low.
Other major U.S. stock averages also erased declines seen earlier in the day to close sharply higher: The S&P 500 advanced 1.16 percent to 2,644.69 and the Nasdaq composite gained 1.45 percent to end at 7,042.11.
U.S. stocks reversed losses, which had come after China unveiled plans for additional tariffs on 106 U.S. products on Wednesday, as overtures were made regarding potential negotiation between the two countries.
“No date has been set for the proposed tariffs put forward by China or the U.S., meaning we could see uncertainty continue for the next couple of months. This also means negotiation is still firmly on the table,” ANZ analysts said in a morning note.
European stocks had come under pressure following China’s announcement of those trade measures, which came before the U.S. market open.
The additional tariffs announced by China on Wednesday came less than a day after the U.S. unveiled the list of Chinese imports, including high-tech products, that could be targeted in response to what the White House deems an unfair trade relationship.
Investors’ improved confidence looked set to carry over into Asia on Thursday, with futures tipping Japan and Australia to open higher.
Nikkei futures traded in Chicago were up 1.06 percent at 21,545 compared to the index’s last close. Australian SPI futures were 0.1 percent firmer at 5,767 against the S&P/ASX 200’s Wednesday close.
Hong Kong, China and Taiwan markets will be closed for the Ching Ming Festival on Thursday.
The dollar firmed slightly against the safe-haven yen following Wall Street’s overnight rebound, trading at 106.75 by 6:57 a.m. HK/SIN.
Meanwhile, the dollar index, which tracks the U.S. currency against six peers, stood at 90.142 at the end of Wednesday.
Here’s the economic calendar for Thursday (all times in HK/SIN):
- 8:30 a.m.: Australia balance of trade
- 12:00 p.m.: Malaysia balance of trade
- 5:00 p.m.: Reserve Bank of India decision
