Asian stocks keep the red as US-China tussle continues

  • Equities in Asia bear the burden of broad risk-off.
  • The US President Donald Trump’s downbeat signals to phase-one deal, comments from China escalate trade war fears.
  • Crude oil recovery, rising concerns of the US President Trump’s impeachment add to investors’ pessimism.

Asian stocks extend previous fall as the United States (US) President Donald Trump hit brakes on expectations of a phase-one deal with China during the present year. Also contributing to the trade war risk is the passage of sanctions on senior Chinese diplomats by the US House. Further, China’s warning to the Trump administration and sanctions on the US Non-Government Organizations (NGOs) keep the world’s two largest economies at loggerheads.

Elsewhere, rising odds of the US President Trump’s impeachment and the US indication to recall auto tariffs further weaken the market’s risk tone.

As a result, MSCI’s index of Asia-Pacific shares outside Japan marks 0.80% loss while Japan’s NIKKEI losses more than 1.20% by the press time. Further, S&P 500 Futures stays on the back foot for the fourth consecutive day whereas Australia’s ASX 200 in 1.6% in the red after better than forecast Aussie Gross Domestic Product (GDP) numbers.

Moving on, India’s BSE SENSEX drops 0.30%, Chinese shares bear the burden of upbeat Caixin Services activity data while Hong Kong’s HANG SENG flashes -1.23% by the time of writing.

While most Asian equities are keeping the red, the US 10-year treasury yields recover Tuesday’s losses of more than 10 basis points (bps) by taking the rounds to 1.72%

Given the presence of Services Purchasing Managers’ Index (PMI) data from the Eurozone, the UK and the US, markets can also follow economic updates in addition to watching over trade/political headlines.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD challenges weekly highs is a sentiment-driven advance

The financial markets continue to focus on sentiment instead than on data, with equities leading the way. Upbeat earnings reports overshadow coronavirus-related concerns. EUR/USD nearing June monthly high at 1.1422.


GBP/USD trims intraday losses, trades flat around 1.2550

The US session is seeing the dollar gave up early gains, even against the weakened Pound. GBP/USD hovers around 1.2550, despite disappointing UK GDP.


Gold advances to fresh daily highs near $1,810

The XAU/USD pair closed the first day of the week with small gains above $1,800. After spending the European session moving sideways in a tight channel, the pair turned north on broad USD weakness during the American session. 

Gold News

Bitcoin low volatility indicates a significant move to $8,000 or $10,000 is nearby

Bitcoin price is currently at $9,229 after a brief dip to $9,104. It is currently below the daily 12-EMA and the 26-EMA which have been unable to cross positively due to the lack of bullish continuation. 

Read more

WTI rebounds towards $40 mark ahead of API data

WTI (August futures on Nymex) is looking to regain the 40-level following a quick rebound from the daily lows reached just above the 39 mark.

Oil News