HONG KONG — The global investor’s mantra so far this year: Panic and sell; realize it isn’t that bad and buy; repeat.
After a punishing day for global markets on Thursday, driven in part by news that Apple reduced its revenue expectations for the first time in 16 years, most markets in Asia and Europe climbed higher. Wall Street, which had closed nearly 3 percent lower, looked poised for a rally, according to futures market that track stocks in the United States. One major exception was Japan, where shares fell as they caught up after a long holiday.
After gloomy China manufacturing data sent a shudder through markets on Wednesday, data showing that China’s service sector rose in December helped push stocks back up by Friday. The faint prospect that China and the United States were inching toward a resolution for a brewing trade war also lifted markets.
China’s Commerce Ministry said on Friday that Jeffrey Gerrish, the deputy United States Trade Representative, would lead a delegation to Beijing for trade talks next week. One of the biggest concerns for investors is how much the trade dispute between China and the United States will dent global growth. The meeting next week will be the first between the two sides since President Trump and President Xi Jinping called a 90-day truce in December.
The week closed on a positive note over all. The wealth management units of several global banks began circulating notes encouraging clients not to panic and highlighting “silver linings” and buying opportunities to the rout that dragged markets around the world into the red in 2018.
“There are plenty of looming concerns for investors, from the U.S. government shutdown and vexed trade talks with China, to the potential impact on consumer and business confidence from the recent market volatility,” analysts at the Swiss bank UBS wrote in a note.
“However,” the note continued, “we think markets can rebound and hold an overweight to global stocks.”
Hong Kong’s Hang Seng Index rose 2.2 percent.
In China, the Shanghai Composite Index gained 2.1 percent. The Shenzhen Composite Index closed 2.7 percent higher.
South Korea’s Kospi index gained 0.8 percent. Japan’s Nikkei 225 fell 2.3 percent. It was the first day of trading this year for Japanese stocks. Taiwan’s Taiex index fell 1.2 percent.
In Europe, Frankfurt’s DAX index opened 1.1 percent higher, while France’s CAC 40 index gained 1.1 percent.
London’s FTSE 100 index rose 0.8 percent at the opening.