Stocks in Japan and Australia climbed Wednesday, with Sydney edging toward a five-year high, as the threat of U.S. military intervention in Syria appeared to diminish.
Japan’s Nikkei 225 eked up 1.71 points to 14,425.07
Hong Kong’s Hang Seng Index slid 39.51 points, or 0.2%, to 22,937.14
Syria said that it would stop making chemical weapons and reveal the location of its stockpiles in an attempt to avoid a military attack on the country.
Fears of a U.S. military strike on Syria have weighed on market sentiment in recent weeks, but the rising possibility of a diplomatic solution this week has contributed to substantial gains for global markets.
An address to the nation by U.S. President Barack Obama, broadcast early on Wednesday in Asia, also gave some markets a push.
Obama said that he had asked Congress to postpone a vote on action and that he has asked Secretary of State John Kerry to meet with his Russian counterpart.
The easing tension was reflected in a weaker yen, an asset that investors flock to in times of turmoil. The dollar pushed 0.8% higher against the Japanese currency Tuesday, but gave up some of those gains by late in Asia — last at ¥100.27 compared with ¥100.38 late Tuesday in New York.
Australian stocks have been helped by a string of consistently upbeat economic data from China, the main consumer of the country’s natural resources.
The weaker yen initially supported Japanese stocks, which hit a seven-week high early in the afternoon session, before giving up most of its gains by the end of the day.
Construction companies, which have rallied this week after Tokyo was selected to host the 2020 Olympic Games, pulled back. Kajima Corp. fell 3.3%, and Taisei Corp. dropped 4.6%.
Shares in companies that supply to Apple fell Wednesday after the U.S. technology giant’s underwhelming launch of its new iPhone models. Murata Manufacturing Co. fell 3.3% in Tokyo and AAC Technologies Holdings lost 4.2% in Hong Kong.
CHINA
Over the weekend, China posted strong export growth for August, which was followed by an acceleration in industrial output on Tuesday. Both measures reinforced the case for a recovery in Asia’s largest economy, leading to gains in the region’s stocks.
The Shanghai Shenzhen CSI 300 improved eight points, or 0.3%, to 2,482.89
In other markets;
The Taiex Index in Taiwan gained 0.22 points to 8,208.99
Korea’s Kospi Index took on 9.79 points, or 0.5%, to 2,003.85
The Singapore Straits Times Index backtracked 15.70 points, or 0.5%, to 3,108.19
In New Zealand, the Exchange 50 Gross Index climbed 7.14 points, or 0.2%, to 4,634.90
In Australia, the S&P/ASX 200 gained 33.22 points, or 0.6%, to 5,234.39
