Asian SharesEconomic News

Asian stocks swing wildly on U.S.-China trade deal mix-up

An electronic stock information board displaying zero numbers on the latests stock prices before the opening of the first trading day after the week-long Lunar New Year holiday at a brokerage house in Shanghai, China, February 15, 2016. REUTERS/Aly Song

By Administrator_India

Capital Sands

Asian shares see-sawed in a wild ride on Tuesday following confusing statements from the White House over the U.S.-China trade deal, with President Donald Trump later clarifying the pact was “fully intact.”

Trump’s tweet bolstered market sentiment, helping e-minis for the S&P 500 swing back to positive territory. Asian shares were quick to turn around too, with MSCI’s broadest index of Asia Pacific shares outside of Japan up 0.7%.

Risk sentiment had taken a knock early in the Asian day after White House trade adviser Peter Navarro said the trade deal with China was “over”, linking the breakdown in part to Washington’s anger over Beijing not sounding the alarm earlier about the coronavirus outbreak.

The comment caused a kneejerk selloff in equities markets, although sentiment turned around quickly after a statement from Navarro that his comment had been taken out of context.

Trump soothed nerves when he tweeted: “China trade deal is fully intact. Hopefully they will continue to live up to the terms of the agreement.”

In response, China’s blue-chip index regained its losses to be last up 0.3% while Hong Kong’s Hang Seng climbed 0.7%.

Australia’s S&P/ASX 200 rose 0.1% while Japan’s Nikkei added 0.8%.

Asian stocks have rallied hard since hitting a low in March amid worries about the jolt to the global economy from the coronavirus-driven shutdowns.

The gains have been driven by hefty central bank stimulus around the globe and gradual easing of restrictions, although worries about a second wave kept investors jittery.

Beijing on Monday reported its second straight day of record COVID-19 infections, while new cases and hospitalisations in record numbers swept through more U.S. states.

New infections spiked in Latin America, Brazil in particular, while New York City, the epicenter of the U.S. outbreak, eased restrictions after 100 days of lockdown.

On Wall Street overnight, the Dow rose 0.59%, the S&P 500 gained 0.65% and the tech-heavy Nasdaq added 1.11% to set a record closing high.

In currencies, the safe haven yen slipped against the dollar to 107.17, while the euro was a shade higher at $1.1265.

The risk sensitive Australian dollar was up 0.3% at $0.6925. Its kiwi counterpart was flat at $0.6478 having pared its losses.

In commodities, U.S. crude fell 0.3%, or 12 cents, to $40.61 a barrel, while Brent was flat at $43.08.

As investors piled on equities, spot gold was off 0.2% at $1,750.5 an ounce.

Related posts
Economic NewsEconomy NewsNews

650% Surge: Multibagger Stock Declares 1:1 Bonus.

Extra offers 2023: Thangamayil Gems shares are one of the multibagger stocks that Indian financial…
Read more
Economic NewsEconomy News

Non-Taxable Income! Charge isn't relevant to these 5 income

The Annual Duty Division in India charges no assessment on pay acquired through specific means.
Read more
Economic News

European Stocks Largely Flat; Ryanair Reports Record June Numbers

European stock markets traded largely unchanged Tuesday, with investors searching for cues given a…
Read more
Become a Trendsetter
Sign up for Davenport’s Daily Digest and get the best of Davenport, tailored for you. [mc4wp_form id="729"]

Leave a Reply

Your email address will not be published. Required fields are marked *