Stocks in Asia gain on hopes of potential US-China trade deal

The Nikkei 225 in Japan advanced 0.16% in early trade as shares of index heavyweights Fast Retailing, Softbank Group and Fanuc rose, while the Topix index also added 0.15%.

The moves in Tokyo came after data showed that Japanese household spending rose less than expected in February, rising 1.7% in February as compared to the year before, as compared to a median estimate for a 2.1 percent annual increase, Reuters reported.

Over in South Korea, the Kospi rose 0.17%. Shares of industry heavyweight Samsung Electronics gained 0.32% despite the company warning that its first-quarter profits likely dropped almost 60% as compared to a year ago.

Australia’s ASX 200, however, slipped 0.67 percent in early trade as almost all sectors declined.

The stock markets in China and Hong Kong are closed on Friday for a holiday.

Overnight on Wall Street, the Dow Jones Industrial Average advanced 166.50 points to close at 26,384.63 and the S&P 500 gained 0.2% to finish its trading day at 2,879.39. The Nasdaq Composite, on the other hand, posted a 0.1% loss and closed at 7,891.78.

The Wall Street Journal reported Thursday that U.S. President Donald Trump expects to announce the date of a trade summit with Chinese leader Xi Jinping later in the day, lifting market sentiment stateside. CNBC later reported, however, that sticking points like enforcement mechanisms on any agreed upon deal remain an issue.

The two economic powerhouses have been locked in an ongoing trade fight, imposing tariffs on billions of dollars worth of each other’s goods since 2018, leaving stock markets rattled and raising concerns over the global economy.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.3 after rising from the 97.0 handle yesterday.

The Japanese yen, widely seen as a safe-haven currency, traded at 111.75 against the dollar after seeing highs below 111.5 in the previous session. The Australian dollar changed hands at $0.7121 after a turbulent session yesterday that saw it swinging around the $0.711 level.

Oil prices declined in the morning of Asian trading hours. The international benchmark Brent crude futures contract slipped 0.39% to $69.13 per barrel after breaking beyond the $70 per barrel barrier in the previous session. Meanwhile, U.S. crude futures also shed 0.13% to $62.02 per barrel.

Meanwhile, as oil prices edge ever higher this year amid tightening global crude supply, Libya, a major producer in the Organization of the Petroleum Exporting Countries, teetered on the edge of war after the country’s eastern military leader ordered his forces to march on the capital of Tripoli.

— CNBC’s Fred Imbert contributed to this report.