While uncertainty is still surrounding US-China trade dispute settlement, stocks in Asia remain mixed. The condition has remained the same since Wednesday although some arguably opine that the markets mostly fell on Friday.
Apparently, investors most likely would not buy any rumors pertaining to trade war’s positive advancement. Henceforth, investors’ neutral stance, in a manner of waiting for trade war’s certitude, has caused some stocks and markets to fall, and are mixed, in Asia Pacific.
At the minute, South Korea’s KOSPI dropped 1.2%. Even worse, Hong Kong’s Hang Seng Index (HSI) fell 0.3% after gaining a bit previously.
Meanwhile, in Japan, Nikkei lost 1.3%. Furthermore, many stocks in Nikkei were also ex-dividend and that, consequentially, contributes to the fall of Nikkei’s index. Kansai Electric Power and Sumitomo Mitsui Financial Group lost 3.98% and 2.33% respectively.
On the other hand, despite poor Chinese economic data, Mainland China acquired better standing compared to the foregoing. Shenzhen component gained 0.89% and Shenzhen composite up 0.91%. The Shanghai composite added 0.11%.
Also Read: Oil Price Falls 2.2% Following Trump’s Comment on Trade War Optimism
China, the US, and Future Trade War Talks
Many analysts argue that China’s poor economic data contributed to the market’s condition. Profits at industrial companies fell 2% in August from a year ago. In contrast to the 2.6% increase in the previous August, this reflects growing pressure in industrial sectors and, also, the slowdown in the country’s economy.
Moving on to the US, the country is currently facing a slowing 2% economic growth compared to last year’s 3%. What is worse is that the US is in a political turmoil.
President Donald Trump has recently received an impeachment inquiry. In response, analysts mentioned that this indirectly worsens Asian markets’ anxiety while experiencing trade war.
“The impeachment of Trump will now become a drawn-out saga that feels like annoying supermarket music,” Jeffrey Halley of Oanda said.
As for the trade war itself, the continuation of its negotiation will take place in Washington on October, 10.
Also Read: US-China Trade War Getting More Dreadful
