Asia Wrap: HK flare up overshadowed today's proceedings

Stephen Innes SPI Asset Management

The demonstrations in Hong Kong regarding the extradition bill provided much of the news flow in Asia and frankly for me anyway it overshadowed most of the goings-on in Asia financial markets

Asian equity markets wobbled after another flare-up in trade tensions when President Trump suggested that it was his way or the highway when it comes to US-China trade negotiations.

The Hang Seng has been thumped trading down over 1.6% ( so far) as investors remain spooked the extradition bill could have far-reaching consequences for attracting overseas talent and does question the viability of Hong Kong as a leading financial hub which of course is spooking property investors.

But the HKD is trading up as a funding squeeze ensues after the Pboc issued bills in HK.

Outside of the Hang Seng, Gold markets continue to attract the lion’s share of attention and while a small outbreak of new trade fears lingers, but this latest gold rush was set in motion after President Trump was back bullying the Fed while the newest trade wobble provides the icing on the cake for Gold bulls. With the HK flare up weighing on equity markets and G-20 looming, gold is getting hoovered in Asia today.

Author

Stephen Innes

SPI Asset Management

With more than 25 years of experience, Stephen has a deep-seated knowledge of G10 and Asian currency markets as well as precious metal and oil markets.

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