SHANGHAI (Reuters) - Asian share markets rallied from nine-month lows on Friday, after China eased foreign investment limits, but underlying sentiment was dampened by worries over trade frictions a week before initial U.S. and Chinese tariffs were set to take effect.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 1 percent higher, while Australian shares were flat.
Japan’s Nikkei stock index was down 0.3 percent, and South Korea’s KOSPI was down slightly.
After falling to fresh two-year lows on Thursday, shares in China rebounded Friday. While analysts said the jump reflected technical factors, it was helped by news that Beijing would ease foreign investment curbs on sectors including banking, automobiles, heavy industry and agriculture.
The country’s central bank also said on Thursday that it would ensure that market liquidity remained “reasonably ample.”
The blue-chip CSI300 index gained 1.5 percent, and the Shanghai Composite index was 1.1 percent higher. Nevertheless, the CSI300 and Shanghai Composite are the world’s two worst-performing major indexes this year, and are set for their worst monthly performances since January 2016.
Hong Kong’s Hang Seng index rose 1.2 percent.
Despite the bump on Friday, analysts downplayed the impact of China’s relaxing of investment curbs on broader trade issues.
“This may not be enough to ease current tensions, with the U.S. calling for much greater market access and fairer competition for foreign enterprises. The list affirms China’s stance that opening up will occur in its own timeframe,” Everbright Sun Hung Kai analysts said in a note.
Elsewhere in the region, investors remained focused on concerns over global trade,
