Stocks in Asia were higher on Monday amid rising tensions between the U.S. and China.
The Nikkei 225 in Japan added 0.57% in early trade, as shares of index heavyweights such as Fast Retailing and Softbank Group advanced. The Topix also gained 0.27%.
In South Korea, the Kospi added 0.73%.
The ASX 200 in Australia rose 1.43%, after the incumbent government claimed an election victory over the weekend, and is widely expected to hold on to power. The financial subindex Down Under surged about 5% in early trade on Monday, with shares of Commonwealth Bank of Australia jumping 5.74% and National Australia Bank advancing 6.98%. Australia and New Zealand Banking Group also surged 6.19%, while Westpac skyrocketed 7.83%.
The Australian dollar changed hands at $0.6903 after last week’s slip from levels above $0.696.
Shares stateside slipped last Friday on the back of reports that trade negotiations between the U.S. and China have hit a pause. Sources told CNBC that scheduling discussions for further trade talks have been put on hold since U.S. President Donald Trump’s administration has increased scrutiny of Chinese telecom companies. A U.S. delegation had earlier been invested to Beijing.
Over the weekend, Reuters reported that Alphabet’s Google has suspended some business with Chinese telecommunications giant Huawei.
Huawei Technologies will immediately lose access to updates to the Android operating system, and the next version of its smartphones outside of China will also lose access to popular applications and services including the Google Play Store and Gmail app, according to the Reuters report.
Last week, the administration made it harder for U.S. companies to do business with Huawei, a giant telecommunications company in China. U.S. firms that want to do business with Huawei must now have a license.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.993 after touching lows below 97.2 last week.
The Japanese yen, widely seen as a safe-haven currency, traded at 110.21 against the dollar after seeing levels below 109.2 last week. The offshore Chinese yuan recovered slightly, trading at 6.9327 against the greenback after falling to an earlier low of 6.9480 last week.
Oil prices gained in the morning of Asian trading hours, with the international benchmark Brent crude futures contract adding 1.02% to $72.95 per barrel. The U.S. crude futures contract also gained 1% to $63.39 per barrel.