Asian Stocks Soar High while Chinese Foreign Trades Witnesses Backlash
Asia, News

Asian Stocks Soar High while Chinese Foreign Trades Witnesses Backlash 

Ahead of major meetings held at the European and US central banks, Asian Stocks have witnessed a significant rise. Also, a ray of hope can be seen in the long begun US-China trade talks.

As per reports, the European Central Bank will hold one its most awaited gatherings. It is expected that many fresh measures will be introduced to bring about a positive change in the market. These include a possible interest rate cut, fresh bond-buying quantitative easing (QE) or other loosening tools.

After this meeting, the Bank will announce the recent reduction in the borrowing costs of China, the world’s top economy in the Federal Reserve’s Board Meeting planned to be held next week.

As stated by the Senior Market Analyst at OANDA, Jeffrey Halley, “With the expectation of the resumption of quantitative easing by the ECB… and a rate cut by the Federal Reserve next week, the risk environment has solidified and tempted investors out of hiding from the bond markets and back into equities.”

The past trade exchanges in Asian Stocks have recorded Japan’s Nikkei rising by 0.32%. Leading the reign, MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.10%.

The Chinese stocks witnessed a fall on the day as the Shanghai composite added 0.84% to about 3,024.74 and Shenzhen component up 1.82% to 10,001.93. The Shenzhen composite also rushed 1.913% to approximately 1,689.21.

Showing the long term impact of the Hong Kong protests, the Hang Seng index of the city was mostly flat till the final trading hour.

Speaking about Japan, the Nikkei 225 soared 0.56% to close at 21,318.42 whereas the Topix index added 0.91% on the day to 1,551.11.

Post the announcement of resignation by Chief Executive Hiroto Saikawa, shares of Nissan have significantly dropped. He had been accused for under reporting his earnings and misusing companies’ assets.

With the recent rally in industrial and energy shares that led to a drop in the real estate and technology sectors, the S & P 500 ended little changed.

US-China trade war has severely affected trade relations between the two countries and slowed down shipments elsewhere too. Asian stock exchange has experienced a hard blow with the war gaining momentum every passing day.

As per analysts, the tariffs levied by Beijing and Washington on each other’s goods worth billions of dollars is largely affecting the global growth. US government has recently announced its plans to increase the taxes by Oct 1 and Dec 15.

The Head of Asia economics at Oxford Economics said, “Looking ahead, we expect China’s export outlook to remain gloomy”. He added, “The additional tariffs imposed by the US on 1 September and those scheduled for October 1 will further dampen export growth momentum.”

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