Asian stocks rise despite lingering trade concerns


  • Asian stocks rise with S&P 500 futures despite escalating trade tensions
  • On Friday, President Trump said that he is not ready to make a trade deal.

Major Asian equity indices are reporting gains at press time, even though the US-China trade war is showing no signs of letting up.

As of writing, the Shanghai Composite index is adding 18 points or 0.65%, having charted a bearish engulfing candle on Friday. South Korea's Kospi and Hong Kong's Hang Seng are up 0.48% and 0.18%, respectively.

Shares in Australia and New Zealand are alternating between marginal losses and gains.

Markets in Japan, Singapore, India, Malaysia, Philippines, and Thailand are closed on account of a trading holiday.

Meanwhile, futures on the S&P 500 are reporting 0.20% gains.

Despite the uptick in the Asian stocks, the anti-risk Japanese Yen remains bid. At press time, the USD/JPY is trading at 105.46, down 0.10% on the day and is looking to set new multi-month lows below Friday's low of 105.27.

The pair has dropped 400 pips so far this month and bond traders have lifted their expectations of central bank easing on escalating US-China trade tensions. On Aug. 1, President Tump abruptly ended the trade truce by stating the US will impose an additional 10% tariff on $300 billion worth of Chinese goods.

Beijing responded by halting purchases of US agricultural products and by allowing the Yuan to depreciate beyond 7 per US Dollar for the first time since 2008.

Further, President Trump said Friday that it would be "fine" if US-China negotiations planned for next month were called off, adding that he's "not ready to make a deal".

Goldman Sachs feels the US-China trade deal is unlikely to happen before 2020 US Presidential elections and fears of trade war leading to an economic recession are growing.

The investment bank has revised lower its forecast for the US fourth-quarter gross domestic product by 0.2 percentage points to 1.8%.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Ends five-day losing streak, but bias remains bearish

EUR/USD gained 0.19% on Wednesday, snapping a five-day losing streak, however, the outlook remains bearish as the pair is trading well below the former support-turned-resistance of 1.1162 (Aug. 12 low).

EUR/USD News

GBP/USD: Teasing inverse head-and-shoulders breakout

GBP/USD is flirting with the inverse head-and-shoulders neckline resistance of 1.2165 at press time. An inverse head-and-shoulders is a bullish reversal pattern and its success rate is high when it appears after a notable sell-off.

GBP/USD News

USD/JPY: 106.50 tested amid higher S&P futures, Treasury yields

Following a temporary reversal seen on Tuesday, the USD/JPY pair resume the bullish momentum in Wednesday's Asian trading and tests the 106.50 level, tracking the gains in the US Treasury yields and S&P 500 futures. 

USD/JPY News

Gold: Bulls cheer pullback from 10-day EMA

Following its successful bounce off 10-day exponential moving average (EMA), Gold takes the bids to $1507 during the early Asian session on Wednesday. The yellow metal now heads to Friday’s high around $1528 ahead of questioning the monthly top surrounding $1535.

Gold News

FOMC Minutes July 30-31 Meeting Preview: The Fed vs the markets

The Fed policy that switched to neutral in Jan completed the circle last month with first decrease in the base rate in more than a decade from a 2.50% upper target to 2.25%. Markets expect a second cut at the September 18th FOMC.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •