Easing US-China Trade Deal leads to 4 Months High for Nikkei
The increasing tensions of a global economic slowdown have relaxed a bit as hopes of positivity loom over the US-China trade deal and the stimulus from the European Central Bank. As per the position of stock market, world’s largest financial newspaper, Nikkei has achieved its four month high on Friday.
Reaching its highest since May 7, the Nikkei Group gained 0.9% to 21,947.53 by the midday break. Announcing its biggest gain in the past eight months, the weekly index has benefited by 3.5% on track.
The Tokyo Stock Price Index, commonly known as TOPIX, reached its highest point in four months rising from 0.5% to 1,602.23.
Out of the total 33 sectors of TOPIX, 30 sectors were on an incline. Listed among the notable gainers are Air transportation, Machinery, Electric Power & Gas and Electric Appliances. On the other side, Agriculture & Forestry, Pulp & Paper and Fishery issues were reported losers.
The US-China trade deal has moved a bit to the positive side, much to the relief of the investors, as the US President, Trump made an announcement on Wednesday regarding the tariffs.
Trump announced that the increased tariffs on 250 billion dollars’ worth of Chinese goods (25% to 30%) that were supposed to start from October 1 will now be delayed to October 15 as a gesture of goodwill. This news came at the ardent request of Liu He, China’s Vice Premier and also in direct consideration of the 70th Anniversary Celebrations of the People’s Republic of China.
With investors still hoping for the US China trade deal to improve further, the S&P 500 rose to close within minimal distance of its all-time closing high overnight.
Threatening to push the other economies into recession, the US-China trade deal has severed relations between two of the world’s largest economies for over a year now. This recent gesture of Trump can be seen as a ray of hope prior working-level resume discussions in September and the high level trade negotiations expected in October are initiated.
Investors expected the coming of some positive news as a result of the ECB meeting held on Thursday, especially after the Brexit issue, that represents a segregation between Britain and EU. Taking a dig at the Federal Reserve, Trump tweeted that the ECB is “succeeding” in “depreciating the Euro against the VERY strong Dollar, hurting U.S. exports” while the Federal Reserve “sits, and sits, and sits”.
Speaking of the Japan Stock Exchange, Zozo Inc, an online fashion retailer rose by 13.4 per cent when Yahoo Japan Corp aimed to purchase 50.1 per cent of its stake with an aim to compete with the likes of Amazon.
In recent news about the US-China trade deal, President Trump announced his plans to consider an interim with the world’s largest economy.
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