Asia Pacific stocks mixed as US-China tensions dampen investor sentiment

28-May-2020 Intellasia | CNBC | 6:50 AM Print This Post

Stocks in Asia Pacific were mixed in Wednesday morning trade as investors weighed the potential impact of rising tensions between Washington and Beijing against economies reopening, as coronavirus containment measures are eased.

Stocks in Asia Pacific were mixed in Wednesday morning trade as investors weighed the potential impact of rising tensions between Washington and Beijing against economies reopening, as coronavirus containment measures are eased.

Mainland Chinese stocks dipped in early trade, with the Shanghai composite down about 0.1 percent while the Shenzhen composite was fractionally lower. Hong Kong’s Hang Seng index, on the other hand, slipped 0.25%.

In Japan, the Nikkei 225 rose 0.36 percent in morning trade as shares of robot maker Fanuc surged 3.4%. The Topix index added 0.5%. Over in South Korea, the Kospi edged 0.38 percent higher.

Australia’s S&P/ASX 200 hovered around the flatline.

Overall, the MSCI Asia-ex Japan index traded 0.11 percent higher.

Developments in US-China relations were likely watched by investors on Wednesday. A Bloomberg News report said the US was considering sanctions on Chinese firms and officials over the situation in Hong Kong. US President Donald Trump said Tuesday afternoon he would make an announcement about the administration’s response to China’s actions by the end of this week.

“Mounting US-China tensions bodes ominous for the global economy amid pandemic fragilities,” Vishnu Varathan, head of economics and strategy at Mizuho Bank, wrote in a note.

Stocks on Wall Street surged overnight stateside, with the Dow Jones Industrial Average gaining 529.95 points, or 2.2%, to close at 24,995.11. The S&P 500 rallied 1.2 percent to end its trading day at 2,991.77 while the Nasdaq Composite lagged, rising just 0.2 percent to close at 9,340.22.

The US dollar index, which tracks the greenback against a basket of its peers, last traded at 99.07 after slipping from levels above 99.2 earlier.

The Japanese yen traded at 107.55 per dollar after strengthening from levels above 107.7 yesterday. The Australian dollar was at $0.665 after rising sharply from levels below $0.66 yesterday.

Oil prices dipped in the morning of Asian trading hours, with international benchmark Brent crude futures down 0.55 percent to $35.97 per barrel. US crude futures also slipped 0.82 percent to $34.07 per barrel.

https://skugal.org/asia-pacific-stocks-mixed-as-u-s-china-tensions-dampen-investor-sentiment/

 


Category: FinanceAsia

Print This Post