Investing.com – Asian equities turned positive in afternoon trade on Tuesday after Chinese president Xi Jinping promised to open the country’s economy further and lower import tariffs.
Asian stocks were under pressure earlier in the day following reports that the Federal Bureau of Investigation raided the offices and home of U.S. president Donald Trump's personal lawyer Michael Cohen.
Overnight, the S&P 500 gained 0.3% after surging as much as 1.9% earlier in the day. The Dow finished 0.2% higher and the Nasdaq edged up 0.5%.
Xi said at the Boao Forum for Asia in Hainan on Tuesday that China would raise its foreign ownership limit in the automobile sector “as soon as possible”. He also promised to take measures to open up the country’s financial and insurance sectors further.
"This year, we will considerably reduce auto import tariffs, and at the same time reduce import tariffs on some other products," Xi said.
His speech followed U.S. president Trump’s comments that he is optimistic the U.S. and China would be able to reach a deal to diffuses trade tensions between the two nations. The comments by Xi and Trump were cited as tailwind for regional stocks as they eased concerns over trade tensions.
Japan’s Nikkei 225 gained 0.7% by 12:46PM ET (04:46 GMT). The country’s machine tool orders data is due later in the day.
In China, the Shanghai Composite and the Shanghai Component climbed 0.5% and 0.2% respectively. The country’s M2 money supply is due at 3:00AM ET (07:00 GMT). Hong Kong’s Hang Seng Index jumped 1.2%.
Elsewhere, South Korea’s KOSPI slipped 0.2%. Samsung (KS:005930) Securities (KS:016360) made headlines after the country’s pension fund said it stopped trading stocks through the company after an error led to an accidental issuance of 2.8 billion shares to employees. U.S. President Trump said on Monday that he expects to meet with North Korean leader Kim Jong Un in May or early June, according to reports.
Down under, Australia's S&P/ASX 200 climbed 0.8%. A survey from National Australia Bank showed the country’s business conditions eased 6 points from record highs to +14 in March.