Asian stocks wobble amid trade tension, China data

  • The US keeps forwarding towards a full-fledged trade war with new curbs on Chinese companies, threats of further sanctions.
  • China’s CPI posted better than forecast numbers but PPI dimmed the charm.
  • Markets in Australia and New Zealand benefited from the RBA’s dovish signals.

With the US-China trade news and Chinese inflation numbers portraying a mixed feeling of joy and sorrow, Asian shares wobble ahead of Friday’s European session open.

Earlier during the day, Bloomberg said that the US stops domestic firms to do business with China’s Huawei, via delaying their request for a license. Following that, One America News Network (OANN) rolled out a story showing the US threatening China of further sanctions, ending trade talks if it uses a military option to break the protests in Hong Kong.

At the data front, China’s July month Consumer Price Index (CPI) crossed upbeat forecasts but Producer Price Index (PPI) lagged behind the pessimistic expectations.

As a result, the MSCI’s index of Asia Pacific shares ex-Japan remains nearly 0.2% in gain whereas Japan’s NIKKEI is on its positive run to 0.6%. Further, China’s HANG SENG loses 0.18% but Australia’s ASX 200 and New Zealand’s NZX 50 cheer dovish statements from the Reserve Bank of Australia’s (RBA) Governor, also confirmed through quarterly monetary policy report. Furthermore, India’s BSE SENSEX is gaining 0.9% by the press time as investors cheer the speculations that the Indian government will roll out measures to help Foreign Portfolio Investors.

It is worth noting that global risk sentiment is again turning heavy with the US 10-year treasury yield revisiting sun-1.7% area by the time of writing.

Moving on, the global economic calendar is almost silent, with the UK GDP and Canadian employment data in the spotlight, which in turn highlights trade/political catalysts as major drivers.

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).


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.


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

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


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