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Asian markets gain

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Asian markets gain

Asian markets were having a favourable time in early trading on Monday.

As the weekend ended, on Sunday, a new report indicated that China’s trade with the United States went down in August, as new tariffs by both parties were announced. According to the customs data displayed on Sunday, imports of American goods collapsed 22% in August from a year earlier to $10.3 billion, whereas the exports to the United States, which is the biggest market for China, toppled 16% to $44.4 billion.

According to Market Watch and Associated Press, Japan’s Nikkei surged 0.5% while Hong Kong’s Hang Seng Index fell 0.1%, as protests continued over the weekend. The Shanghai Composite added 0.4%, the Shenzhen Composite gained 0.9%. Also, and South Korea’s Kospi rose 0.6%.

Jingyi Pan, market strategist at IG in Singapore, stated, “A mixed set of leads sets Asia up for a muted start to a week focused on monetary policy. China’s trade data had been one to disappoint over the weekend after further monetary stimulus announcements.”

As the trade fights between the two countries continue to take place, the shipments from China to the US were sluggish.

“Looking ahead, we expect China’s export outlook to remain gloomy. The additional tariffs imposed by the US on 1 September and those scheduled for October 1 will further dampen export growth momentum,” Louis Kuijs, head of Asia economics at Oxford Economics, stated in a Sunday note.

(Reference: Market Watch, Associated Press, CNBC)

(Image source: REUTERS/TORU HANAI)