By Andrew Galbraith
SHANGHAI (Reuters) - Asian shares were higher on Friday following gains on Wall Street overnight, as concerns over an escalating U.S. trade war with China took a breather.
MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> was up 0.2 percent, building on a 0.6 percent rise on Thursday, after U.S. stocks ended the day higher.
Australian shares <.AXJO> also gained 0.2 percent, while Japan's Nikkei stock index <.N225> was 1.2 percent higher.
Shares in Asia had recovered on Thursday after dropping on an announcement from Washington that the U.S. planned to institute 10 percent tariffs on an additional $200 billion in Chinese imports.
The U.S. slapped import tariffs of 25 percent on $34 billion worth of Chinese goods on July 6, prompting a matching response from China.
But while China has vowed to retaliate to the new tariffs, the lack of a specific response to date has sparked a global relief rally.
On Thursday, the Dow Jones Industrial Average <.DJI> rose 0.91 percent to 24,924.89, the S&P 500 <.SPX> gained 0.87 percent to 2,798.29 and the Nasdaq Composite <.IXIC> added 1.39 percent to 7,823.92.
On Friday, S&P500 e-mini futures
"Some have suggested that Chinese officials are easing back their rhetoric with the intention of going back to the negotiation table, perhaps in light of increased concerns about economic impacts," ANZ analysts wrote in a note on Friday. "But it is not clear whether it is truly a change in tone or if the U.S. news was a surprise to China's economic team and a reaction is being prepared."
On Thursday, U.S. Treasury Secretary Steven Mnuchin said that the U.S. and China could reopen trade talks, but only if Beijing was willing "to make serious efforts to make structural changes."
The dollar, which has been a safe haven amid global uncertainty over trade, touched 112.70 against the yen
The dollar index <.DXY>, which tracks the greenback against a basket of six major rivals, was up 0.1 percent at 94.868. The euro
The warning came after supply disruptions in recent weeks from countries including Venezuela, Norway, Canada and Libya.
(Reporting by Andrew Galbraith; Editing by Sam Holmes)
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Updated Date: Jul 13, 2018 07:05 AM