People walked by an electronic stock board at a securities firm in Tokyo, where the Nikkei 225 closed 2.6% higher on Friday.
Photo: Eugene Hoshiko/Associated PressInternational shares rose, tracking gains in U.S. stock markets, as China indicated its phase-one trade deal with the U.S. remained on track.
By early afternoon Friday in Hong Kong, the city’s Hang Seng Index and the Shanghai Composite had both gained about 1% each. Japan’s Nikkei 225 rose 2.6%, and South Korea’s Kospi Composite added 1.3%. Australia’s benchmark S&P/ASX 200 advanced 0.8%.
E-mini S&P 500 futures rose 1.3%, suggesting that the U.S. market could rise in Friday’s session.
The top trade negotiators for the U.S. and China talked on the phone Friday, pledging to create favorable conditions for the two countries’ phase-one trade deal, China’s state-run Xinhua News Agency reported. The call came after President Trump threatened to “terminate” the trade deal if China failed to buy promised goods and services from the U.S.
U.S. stocks broadly rose Thursday, boosted in part by a continued decline in the number of U.S. workers filing unemployment claims. The tech-heavy Nasdaq Composite added 1.4%, re-entering positive territory for the year, with PayPal Holdings jumping 14% after the digital payments company reported a sharp increase in new active accounts.
Khiem Do, head of Greater China Investments at Barings, said a gulf had opened up between digital-economy companies specializing in areas such as online games, shopping or entertainment, which were doing extremely well, and the old economy, which was hard hit by the pandemic. “There are two worlds operating simultaneously,” he said.
In Asia, Chinese game and social-media giant Tencent Holdings Ltd. is up about 11% this year, according to FactSet, outperforming Hong Kong’s Hang Seng Index.
However, Mr. Do said traditional economic activity was likely to start recovering in the second half of the year, pointing to resumption of business activity in Asian countries such as China and South Korea.
Mr. Do said the recent recovery in stocks had divided investor opinion, with many investors holding cash to guard against any future market corrections, while others have jumped back into a rising market.
His asset-management firm predicts earnings per share in Asia will drop about 20% in 2020, in line with the rest of the world, but he said this had already been priced in.
In bond markets, the yield on the 10-year U.S. Treasury note rose to 0.639% from 0.630%. Yields move inversely to bond prices. The yield on the two-year equivalent rose slightly to 0.135%, according to Tradeweb, after settling at a record low on Thursday.
Brent crude, the global oil benchmark, edged up 1.4% to $29.88 a barrel.
Write to Xie Yu at Yu.Xie@wsj.com
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