Stocks up on China reprieve

BETWEEN trade wars, higher US dollar rates and a stronger greenback, the regional stock market environment remains challenging.

Stock markets in Asia advanced in thin trade on Friday, in tandem with a firmer Wall Street market on Thursday and some possible window dressing by funds ahead of their financial year end. The latter refers to portfolio rebalancing by fund managers buying well-performing stocks and selling those that have fared poorly to make their portfolio look better in their annual reports.

China's move to ease foreign investment limits provided investors a temporary respite to trade war fears. The mainland released a narrower list of sectors where foreign firms are restricted from investing in. The news, coupled with the European Union's agreement on migration, propelled Europe and US stock futures. On the currency front, the US dollar continued to firm.