Almost all the stock indices of the Asia-Pacific region rose on Monday after closing higher last week, extending the rally not seen since February 2017.
Investors weighed the signals of easing trade tensions between China and the United States.
The worst performers were South Korean, Singapore and Indonesian stocks. Markets in Indonesia are concerned by the increased number of terrorist attacks, including the bombings at three churches last weekend and an attack on the police station on Monday.
The consolidated index of the Asia-Pacific region, MSCI Asia Pacific, gained 0.5%, rising to 176.44.
Donald Trump eased rhetoric on ZTE, China’s second-largest telecommunications equipment maker. On Monday, May 13, Trump ordered the Commerce Department to help ZTE to "get back into business".
This helped dollar bonds of electronics manufacturers and telecommunications equipment makers of China, including Lenovo and Huawei, rise in price.
A top-level Chinese delegation led by Vice Premier Liu He will arrive in Washington for trade talks this week.
Nikkei 225 rose by 0.5%, while Topix advanced by 0.6%.
Hong Kong Hang Seng grew by 1.4% on the back of strong data on Hong Kong’s growth. The Chinese Shanghai Composite climbed by 0.3%.
Australia's S&P/ASX 200 Index rose by 0.3%, while India’s Sensex ticked up by 0.1%.
South Korean Kospi sank by 0.1%, while Indonesian Jakarta Composite declined by 0.2%.
The Malaysian market, which has been closed since the middle of the last week due to elections, opened on Monday with increased volatility: during early trades the major index lost 3% and then switched to a 0.2% rise by the end of trading. The national currency of Malaysia, which fell by 1% at early trades, managed to offset the decline by the end of the trading day.
In Japan, producer prices rose by 2%, marking the slowest pace of growth in thirteen months on a yearly basis in April. In March prices increased by 2.1%. Month-on-month, prices edged up by 0.1%. Both readings matched analysts’ expectations.
Stocks of Asia-Pacific producers of raw materials advanced: BHP gained 1.9% during Sydney trades, Rio Tinti was up 0.7%, and Aluminia rose by 2.9%.
