Investing.com – Asian stocks were mostly higher in afternoon trade on Monday, tracking gains on Wall Street as U.S. shares recorded the biggest advance in almost four weeks on Friday.
China’s Shanghai Composite jumped 1.2% while the Shenzhen Component also gained 1.6% by 1:15AM ET (05:15 GMT).
Tension between the U.S. and China took center stage as the two nations issued a long list of demands for each other on Friday in an attempt to resolve the trade dispute between them.
In a statement titled “Balancing the Trade Relationship”, China demanded the U.S. to stop imposing 25% extra tariffs against Chinese products, adjust export ban on ZTE. Corp, and open its e-payment market to Chinese companies.
Meanwhile, the U.S. requested several conditions, including protection of American technology and intellectual property and reducing the two nation’s trade deficit by at least $200 billion by 2020.
Separately, Yi Gang, the Chinese central bank governor, said on Monday that China has a "huge" trade imbalance with the U.S. and that it needs to be viewed rationally as a long term structural problem.
Elsewhere, The China Banking and Insurance Regulatory Commission imposed a total of 183 million yuan of fines on three local banks for more than a dozen violations, reports on Monday suggested, adding that this is the largest fines since China reshuffled its supervisory regime in March.
The upcoming U.S.-North Korea meeting also remained in focus as North Korea’s state-run news agency accused the U.S. of trying to mislead the public to believe its sanctions were the reason behind North Korea’s willingness to remove nuclear weapons.
The news came after Trump said on Friday that a date and place are confirmed for the upcoming summit. While official details were not provided, South Korean newspapers have reported that the meeting would most likely take place in the third week of June in Singapore.
Japan’s Nikkei 225 slipped 0.4% in afternoon trade. Reports that several policymakers said the Bank of Japan should make it clear to the public that it is not ready to consider the details and timing of when it could exit its ultra-loose policy garnered some attention.
Elsewhere, Hong Kong’s Hang Seng Index climbed 0.5%, while Australia’s S&P/ASX 200 climbed 0.4%. South Korean markets are closed for a holiday, but reports that the Bank of Korea Governor Lee Ju-yeol said the central bank should lift its benchmark rate raised some eye brows, although the bank later released a statement and clarified Lee was just speaking in "general terms."
Looking ahead, China trade data and Australia’s federal budget are due out Tuesday, while Wednesday would bring Japanese wages data and then later on U.S. PPI. Inflation releases in China and the U.S. are scheduled to be released on Thursday.