Investing.com - Asian stocks rose in morning trade on Wednesday following reports that China would cut tariffs on cars made in the U.S.
China is cutting tariffs to 15% from the current 40%. Asian automakers surged following the news, with Yamaha Motor jumped 5.32%, Mitsubishi Motor rose 3.21%, while Toyota inched up 2.02%. Nissan also climbed 1.6% despite a recent scandal involving former Chairman Carlos Ghosn.
Meanwhile, market sentiment improved after Canada granted bail to Meng Wanzhou, CFO of China’s Huawei, who was arrested last week at the behest of the U.S.
On Tuesday, U.S. President Donald Trump told Reuters in an interview that he would consider intervening in the case, and would meet with President Xi Jinping if needed to move forward on trade negotiations.
The Shanghai Composite and the Shenzhen Component rose 0.3% and 0.2% respectively in morning trade, while Hong Kong’s Hang Seng Index jumped 1.5%. China-based music streaming company Tencent Music Entertainment Group (NYSE:TME), the music arm of gaming and social giant Tencent Holdings Ltd (HK:0700), said it raised close to $1.1 billion in its U.S. initial public offering (IPO), according to a filing.
Japan’s Nikkei 225 traded 2.0% higher even after data showed the country’s core machinery orders rose less than expected in October.
Core machinery orders came rose 7.6% month-on-month compared with the median estimate for a 10.5% gain.
Orders from manufacturers rose 12.3% on-month in October after a 17.3% decline in September, while service-sector orders rose 4.5 %, following a 17.1% decline in the previous month.
Elsewhere, South Korea’s KOSPI and Australia’s ASX 200 both rose 1.2%.
In other news, Trump continued his criticism of the U.S. central bank and said it would be a mistake if the Federal Reserve raises interest rates when it meets next week.
"I think that would be foolish, but what can I say?" Trump told Reuters in an interview.
"You have to understand, we're fighting some trade battles and we're winning. But I need accommodation too," he said.
Trump then added he thinks Fed chairman Jerome Powell is “a good man” but he is “being far too aggressive.”
“I think he's trying to do what he thinks is best. I disagree with him," he said.