Asian markets were mixed on Monday afternoon as traders combined renewed optimism about a trade deal between the United States and China with data showing that Chinese industrial profits grew for the first time in four months. Data out at the end of last week showed that the U.S. GDP grew at a 3.2 percent annualized rate in Q1 2019.
Though gains were capped by concerns about what the Federal Reserve will announce this week after its policy meeting, most Asian indexes were higher on Monday afternoon. South Korea’s Kospi saw the strongest gains, up 1.44 percent as of 2:15 p.m. HK/SIN. Hong Kong’s Hang Seng Index was up 0.85 percent and the Shanghai Composite was up 0.22 percent. The Shenzhen Composite was among the few to suffer losses, falling 1.04 percent by the mid-afternoon. Australian shares also retreated 0.39 percent after seeing an 11-year closing high on Friday.
The Japanese financial markets are closed this week in celebration of the rise of a new emperor, but the Nikkei’s futures were higher on Monday despite the closed markets. On April 30, 2019, Emperor Akihito is set to abdicate his position, a move which will be the first abdication in over 200 years. On Wednesday, crown prince Naruhito will become the country’s 126th emperor, and the Japanese era of Reiwa (“beautiful harmony”) will begin.
Also on April 30, trade talks between the U.S. and China will resume. U.S. Trade Secretary Steven Mnuchin has reportedly announced that the talks are in their final stages. According to a report by CNBC, Mnuchin has said that the talks are now at a point where the deal will either be finalized or will crumble. Mnuchin will join U.S. Trade Representative Robert Lighthizer at the talks in Beijing this week.