The China Mail - Stocks build on gains after jobs data, Seoul surges on Lee's win

Speculation that presidents Donald Trump and Xi Jinping will speak this week stoked optimism for a soothing of US-China tensions, though the Republican indicated in a social media post his counterpart was "hard to make a deal with".

The US leader's ramped-up tariffs on aluminium and steel imports -- announced Friday -- kicked in Wednesday, highlighting the uncertainty caused by the White House's off-the-cuff policies.

Traders in Asia took the baton from a positive Wall Street, where all three main indexes were lifted by data showing US job openings unexpectedly rose in April, calming worries about the impact of Trump's tariff blitz on the world's number one economy.

The reading came ahead of crucial non-farm payrolls figures Friday, which are closely followed by the US Federal Reserve as it maps monetary policy in light of weak growth and fears of tariff-fuelled inflation.

"Growth is sputtering, the second half looks increasingly cloudy, and everyone knows the Fed's rate-cut cavalry will ride in eventually. It's already priced, already scripted -- no one's shocked by the plot twist unless, of course, inflation proves stickier than expected," said Stephen Innes at SPI Asset Management.

"But what's genuinely keeping equities ticking higher is the soft hum of hope -- that US-China tensions could thaw into something warmer than their current frosty detente," Innes said.

He added that the risk of tariffs, "once a terrifying monster, now looks more like a toothless terrier's wag, comforting investors enough to hold their ground despite the global economy's chills".

Traders are awaiting further developments on the China-US front after White House officials said the two nations' leaders could talk this week, even after Trump accused Beijing of violating last month's detente that slashed tit-for-tat tariffs.

However, the US president wrote on social media in a late-night post that while he was fond of Xi, he suggested he was a tough negotiator.

"I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!" he posted on his Truth Social platform.

Tokyo, Hong Kong, Shanghai, Sydney, Wellington, Taipei, Mumbai and Jakarta all rose, while London, Paris and Frankfurt continued their Tuesday advances.

Seoul rallied more than two percent -- pushing into a bull market after rising more than 20 percent from its recent low in April -- as Lee Jae-myung won South Korea's snap presidential election. The won gained around 0.8 percent.

The poll was called after the impeachment of predecessor Yoon Suk Yeol over his brief martial law attempt and ended six months of political turmoil in the country.

It has also raised hopes that Lee will introduce fresh measures to boost the export-dependent economy, which faces a hefty hit from Trump's tariffs, particularly the huge levies on steel and aluminium.

In Lee's inauguration speech on Wednesday, the new president warned protectionism posed a threat to the country's "survival".

On the campaign trail, Lee said Seoul needed to start tariff negotiations with Washington "immediately" but also stressed there was no need to "rush" a deal.

- Key figures at around 0715 GMT -

Tokyo - Nikkei 225: UP 0.8 percent at 37,747.45 (close)

Hong Kong - Hang Seng Index: UP 0.5 percent at 23,634.55

Shanghai - Composite: UP 0.4 percent at 3,376.20 (close)

London - FTSE 100: UP 0.1 percent at 8,796.08

Euro/dollar: UP at $1.1375 from $1.1371 on Tuesday

Pound/dollar: UP at $1.3519 from $1.3518

Dollar/yen: DOWN at 143.90 yen from 144.03 yen

Euro/pound: UP at 84.14 pence from 84.11 pence

West Texas Intermediate: DOWN 0.3 percent at $63.23 per barrel

Brent North Sea Crude: DOWN 0.3 percent at $65.46 per barrel

New York - Dow: UP 0.5 percent at 42,519.64 (close)

G.Fung--ThChM