A currency trader walks by the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room in Seoul, South Korea, Friday, Sept. 21, 2018. Asian stocks rose Friday after Wall Street hit a new high and a survey showed Japanese manufacturing accelerating. (AP Photo/Lee Jin-man)

Asian stocks follow Wall Street higher

September 20, 2018 - 10:26 pm

BEIJING (AP) — Asian stocks rose Friday after Wall Street hit a new high and a survey showed Japanese manufacturing accelerating.

KEEPING SCORE: The Shanghai Composite Index rose 1.4 percent to 2,766.86 and Tokyo's Nikkei 225 advanced 1 percent to 23,905.76. Seoul's Kospi added 0.4 percent to 2,332.94 and Sydney's S&P-ASX 200 gained 0.2 percent to 6,181.90. India's Sensex was 0.7 percent higher at 37,369.88 and benchmarks in Taiwan, New Zealand and Southeast Asia also advanced.

WALL STREET: The Dow Jones industrial average and Standard & Poor's 500 index set records as a wave of buying pushed prices higher. Technology stocks, banks and health care companies accounted for much of the rally. Energy companies declined along with crude oil prices. The S&P 500 rose 0.8 percent to 2,930.75. The Dow gained 1 percent to 26,656.98. The Nasdaq composite climbed 1 percent to 8,028.23.

ANALYST'S TAKE: "The resilience in the U.S. market is evident here and the breakout further renews the momentum," said Jinyi Pan of IG in a report. Still, "warning signs are abundant" amid U.S.-Chinese trade tensions, Pan said. "Cautiousness in the form of stop losses may be ever so important with the uncertainty in post-tariffs exchanges lingering into next week."

TRADE TENSION: The latest U.S. tariff hike on Chinese goods in a dispute over Beijing's technology policy takes effect Monday, when Washington imposes an additional 10 percent tax on $200 billion of imports. The tariffs will rise to 25 percent on Jan 1. Beijing announced it would retaliate by imposing tariffs of 5 or 10 percent on $60 billion of U.S. goods including coffee, honey and industrial chemicals.

JAPANESE MANUFACTURING: A preliminary version of Japan's monthly purchasing managers' index showed factory activity accelerated in September. The PMI rose to a three-month high of 52.9 from August's 52.5 on a 100-point scale. The measure of new export orders rose to a four-month high.

ENERGY: Benchmark U.S. crude fell 6 cents to $70.26 per barrel in electronic trading on the New York Mercantile Exchange. The contract lost 55 cents on Thursday to close at $70.32. Brent crude, used to price international oils, advanced 6 cent to $78.28 per barrel in London. It tumbled 70 cents the previous session to $78.22.

CURRENCY: The dollar gained to 112.77 yen from Thursday's 112.46 yen. The euro slipped to $1.1784.