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. 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

Latest Forex News

Editors’ Picks

AUD/USD: Bounces off one-week low on Powell-Mnuchin comments, eyes RBA

AUD/USD probes pullback from multi-month high ahead of the key data/events. Fed Chair Powell conveys economic worries, US Treasury Secretary Mnuchin pushes for stimulus. Risks dwindle amid economic fears, uncertainty over the US covid aid package.


Gold: Wobbles near five-month low below $1,800 as Powell, Mnuchin weigh on risks

Gold prices seesaw around $1,77/78 during the early Tuesday morning in Asia. The yellow metal dropped to the lowest since July the previous day before bouncing off $1,764.73. Economic fears, need for stimulus raise bars for the bull’s entry.

Gold news

EUR/USD retreats after its first attempt to break above 1.2000

EUR/USD trades around 1.1940 after failing to break above the psychological threshold. Bulls retain control and would likely challenge the level once again.


WTI holds $45 as OPEC+ postpones output cut decision to Thursday

WTI keeps recovery moves from $44.51 despite multiple failures to regain $46.00. The oil benchmark dropped to the one week low on the previous day amid the US dollar recovery.

Oil News

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info