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. 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

Latest Forex News

Editors’ Picks

EUR/USD crashes to new 2020 lows amid ECB dovishness, coronavirus fears

EUR/USD is trading below 1.1050, at the lowest since early December. ECB President Christine Lagarde refrained from acknowledging the recent economic improvement. Fears of the spread of the coronavirus are weighing on markets.


GBP/USD pressured toward 1.31 amid risk-off mood

GBP/USD is trading around 1.31, off the highs. Coronavirus headlines are sending traders to the safety of the US dollar. Speculation about the next BOE move is rife.


Top 3 Price Prediction Bitcoin, Ethereum, XRP: Set for a dive before the next big bull market

The first initiative comes from WhatsApp. Users of Facebook’s popular instant messaging application will be able to exchange Ether among themselves and other tokens that function over the ERC20 protocol.

Read more

Crude Oil Futures: Downside looks unabated

Traders added around 8.3K contracts to their open interest positions on Wednesday, reversing two consecutive pullbacks. Volume, instead, prolonged the choppiness and shrunk  by around 115.3K contracts.

Read more

USD/JPY drops to fresh eight-day lows near 109.50

USD/JPY extends losses and trades close to an eight-day low near 109.50 in a relatively risk-off environment, with the media headlines full of the coronavirus as it spreads internationally. Bears can look to the golden ratio around mid-108s.