TOKYO (Reuters) – Asian stocks extended gains on Friday thanks to Wall Street scoring all-time highs, as investors gravitated to the view that the latest exchange of tariffs between the United States and China may be less damaging than initially feared.
A rally in Chinese markets helped lift the MSCI’s broadest index of Asia-Pacific shares outside Japan 1.15 percent, buoyed in part by expectations that Beijing will pump more stimulus into its economy to weather the trade war. The MSCI index has rebounded 4.6 percent from a 14-month low on Sept. 12.
Chinese shares, which had been hit the hardest by the trade war, rallied. The CSI 300 index of Shanghai and Shenzen shares, which slumped to a two-year low last week, rose 2.4 percent, on course for its largest weekly gain in more than two years.
“China has unveiled a series of steps to support the economy this week, starting with accelerating infrastructure spending,” said Wang Shenshen, strategist at Tokai Tokyo Research.