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Home / Business / Asia stocks are mostly in the midst of renewed trade concerns between the US and China

Asia stocks are mostly in the midst of renewed trade concerns between the US and China



Stocks in Asia mostly went on the first day of trading in November, amid renewed concern about the potential for a long-term trade agreement between China and the United States.

Chinese stocks on the mainland rose with the close Shanghai Composite advanced 0.99% to about 2,958.20 and the Shenzhen component rose 1.73% to 9,802.33. The Shenzhen composite also added 1.288% to about 1,637.00.

A private study of factory activity in China showed that production activity in the country expanded more than expected in October. The Caixin / Markit purchasing leader's index (PMI) for the industrial sector came in at 51

.7, above analysts' expectation of 51.0 in a Reuters survey. The 50-level PMI readings distinguish expansion from contraction.

A day before, official data showed that production activity in China shrunk for the sixth straight month in October. The official PMI survey typically surveys a large proportion of large companies and government companies. The Caixin indicator has a larger mix of SMEs.

In Hong Kong, the Hang Seng index rose 0.57% from the last hour of trading as ESR Cayman shares jumped into the company's public debut on Friday. Shares had risen by 7% in the morning.

Meanwhile, South Korea's Kospi advanced 0.8% to close at 2,100.20. The S & P / ASX 200 in Australia recovered from a previous sliding closing day its trading day fractionally higher at 6669.10.

The Japanese Nikkei 225 slipped 0.33% to close at 22,850.77, while the Topix index ended the trading day largely flat at 1,666.50. Shares in gaming company Nintendo increased by 7.46%, after the company announced a surplus in the second quarter that exceeded expectations.

Overall, the MSCI Asia ex-Japan index was 0.41% higher.

US China Fears [19659010] Investors watched US-China trade move amid renewed jitters after Bloomberg News reported on Thursday, citing Chinese officials, cast doubt on the possibility of a long-term trade deal with USA. The report added Chinese officials are concerned about US President Donald Trump's "impulsive nature" and the risk of backing him from any kind of agreement.

That development came amid the recent optimism for a "phase one" agreement that was soon to be concluded between the two economic powerhouses. The agreement was initially expected to be signed at a summit in Chile in November, an event that has since been canceled by the country due to ongoing anti-government protests.

For his part, US President Donald Trump on Thursday said a new venue for signing the "phase one" trade agreement with China "will be announced soon."

Beijing and Washington have been engaged in a trade war since 2018, with tariffs being capped at billions of dollars of each other's goods.

"Both sides (the US and China) are keen to enter into an agreement, but doubt the shadows," wrote Vishnu Varathan, Head of Finance and Strategy at Mizuho Bank, in a note.

"To be sure, a limited (low hanging)" phase one "agreement (which bypasses the thinnest of issues like China's industry, IP and technology transfer) is within reach," Varathan said. "But there is no doubt about meaningful progress outside."

Overnight on Wall Street, trading girls sent shares on Wall Street lower. The Dow Jones Industrial Average closed 140.46 points lower at 27,046.23, while the S&P 500 slipped 0.3% to end its trading day at 3,037.56. Nasdaq Composite fell 0.1% to close at 8,292.36.

The October U.S. Work Report is scheduled for Friday, and is expected to be unusually weak due to the strike at General Motors. Economists expect only 75,000 jobs were created in October, and unemployment is projected to tick up to 3.6% from 3.5%, according to Dow Jones.

Currencies and Oil

The US dollar index, which tracks the greenback against a basket of its peers, was last at 97,212 after slipping from levels above 97.4 yesterday.

The Japanese yen, often viewed as a safe harbor currency in times of market uncertainty, traded at $ 107.98 against the dollar after strengthening from levels above 108.5 in the previous session. The Australian dollar changed hands at $ 0.6906 after falling from levels above $ 0.669 yesterday.

Oil prices were mixed in the afternoon after Asian trading hours, with the international benchmark index of Brent crude oil futures dropping previous gains to fall 0.1% to $ 59.56 a barrel. US crude futures reached 0.13% to $ 54.25 a barrel.

– CNBC's Fred Imbert, Patti Domm and Huileng Tan contributed to this report.


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