Chinese stocks muted while Australian stocks jumped
The tension in the markets due to the US-China trade deal has been ongoing, and recently, the two economical giants announced that they had finally agreed to proceed with the phase one agreement. The trade war has been affecting the markets for about 18 months.
Following the news of the US and China finally agreeing to approach a phase one trade agreement, the Chinese stocks along with Asian markets showcased a mostly muted reaction.
The Shanghai composite index was neutral in early trade whereas the Shenzhen component added 0.32%. The Shenzhen composite jumped 0.29% and Hong Kong’s Hang Seng index tumbled 0.12%.
However, despite the other stocks, Australia’s S&P/ASX 200 stood out in Asian stocks, by ascending 1.24%, influenced by banks and major miners.
Japan’s Nikkei 225 plunged 0.11% after a strong rally on Friday, while the Topix was flat. In South Korea, the Kospi soared 0.11%.
All in all, MSCI’s broadest index of Asia-Pacific shares outside Japan went up 0.27%.
On the recent progression of the US-China trade deal, John Bromhead, foreign exchange strategist at ANZ Research, stated: “The US and China reach another trade agreement but markets are quick to question the level of positivity emanating from the announcement. The announcement is a step in the right direction for the two nations, but does not completely reduce the chances of trade disputes between the two nations in the year.”
(Image source: Getty Images/iStockphoto)