Asian stocks track Wall St up after jobs data, Seoul surges on Lee win

The Star

3 days ago

People walk in front of an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, June 4, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)
HONG KONG: Asian shares extended a global rise Wednesday (June 4) following data indicating the US economy remained resilient, with South Korean equities and the won standing out as the election of a new president ended months of political paralysis.
Speculation that US President Donald Trump and Chinese leader Xi Jinping will speak this week stoked optimism for a soothing of trade tensions between Washington and Beijing.
However, Trump's ramped-up tariffs on aluminium and steel imports -- announced Friday -- are due to kick in later Wednesday, highlighting the uncertainty caused by the White House's off-the-cuff policies.
Traders in Asia took the baton from a positive Wall Street, where all three main indexes were lifted by data showing US job openings unexpectedly rose in April, calming worries about the impact of Trump's tariff blitz on the world's number one economy.
The reading came ahead of crucial non-farm payrolls figures Friday, which are closely followed by the US Federal Reserve as it maps monetary policy in light of weak growth and fears of tariff-fuelled inflation.
"Growth is sputtering, the second half looks increasingly cloudy, and everyone knows the Fed's rate-cut cavalry will ride in eventually. It's already priced, already scripted -- no one's shocked by the plot twist unless, of course, inflation proves stickier than expected," said Stephen Innes at SPI Asset Management.
"But what's genuinely keeping equities ticking higher is the soft hum of hope -- that US-China tensions could thaw into something warmer than their current frosty detente," Innes said.
He added that the risk of tariffs, "once a terrifying monster, now looks more like a toothless terrier's wag, comforting investors enough to hold their ground despite the global economy's chills".
Traders are awaiting further developments on the China-US front after White House officials said the two nations' leaders could talk this week, even after Trump accused Beijing of violating last month's detente that slashed tit-for-tat tariffs.
News that eurozone inflation had eased in May to its lowest level in eight months -- and slipped back below the European Central Bank's two-per cent target -- added to the upbeat mood.
Tokyo, Hong Kong, Shanghai, Sydney, Wellington, Taipei, Manila and Jakarta all rose.
Seoul rallied more than two per cent -- pushing into a bull market after rising more than 20 per cent from its recent low -- as Lee Jae-myung won South Korea's snap presidential election. The won gained around 0.3 per cent.
The poll was called after the impeachment of predecessor Yoon Suk-yeol over his brief martial law attempt and ended six months of political turmoil in the country.
It has also raised hopes that Lee will introduce fresh measures to boost the export-dependent economy, which faces a hefty hit from Trump's tariffs, particularly the huge levies on steel and aluminium.
In his inauguration speech on Wednesday, the new president warned protectionism posed a threat to the country's "survival".
On the campaign trail, Lee said Seoul needed to start tariff negotiations with Washington "immediately" but also stressed there was no need to "rush" a deal. - AFP