Stocks in Asia were mixed on Friday, the early of November, as concerns pertaining to US-China new trade deal escalates. CNBC reported that some stocks mainly advanced.
Mainland China’s stocks went up as The Shanghai composite gained 0.99%. Meanwhile, The Shenzhen component and The Shenzhen composite rose 1.73% and 1.288% respectively.
One of the causes was due to the increasing manufacturing activity in China that exceeded October’s expectation. Prior to the day, official data disclosed that manufacturing activity was suffering from a six straight monthly decline in October.
Elsewhere, in Hong Kong, the Hang Seng index also advanced 0.57% in its final hour trading. Among the escalation, ESR Cayman’s share advancement by 7% contributed to the index.
South Korean KOSPI gained 0.8%. The MSCI Asia ex-Japan index rose 0.41% as observed on Friday Asia Stocks.
Japanese Nikkei did not get much fortune as the index slipped 0.33%. Meanwhile, the Topix index ended the trading day with a flat progression.
Also Read: US-China Close to Finalize Phase One Deal
Potential New US-China Trade Deal
The US-China trade deal is scheduled to be signed in mid-November, particularly during the upcoming APEC summit. Although the deal to sign on the summit is pertaining to the partial ‘Phase One’ deal, rumors have it say that there might potentially be a new long-term deal in progress.
That said, Bloomberg reported that Chinese officials are doubting the optimism. Considering the future deal, Chinese officials are afraid that President Trump’s ‘impulsive nature’ might risk the progression of the deal.
Despite the growing doubts, US President Donald Trump was hinting an update pertaining to the signing. Accordingly, President Trump said on Thursday that the signing location will soon be announced.
Vishnu Varathan, head of economics and strategy at Mizuho Bank, argued that both the US and China actually want to sign the deal. However, this does not invalidate the emerging doubts regarding future continuation.
“Both sides are keen to sign a deal, but doubt overshadows. To be sure, a limited ‘phase one’ deal is within grasp. But that does not quell doubts about meaningful progress beyond,” Varathan stated.
Also Read: Trump to Sign Deal on Mid-November, China Uncertain
