- The third day of protests in Hong Kong wobbles Asian stocks amid US-China trade uncertainty.
- The UK, US and Indian inflation data will be the key ahead of Fed’s Powell’s Testimony.
Intensifying unrest in Hong Kong joins on-going uncertainty surrounding the US-China trade deal to drag the Asian stocks southwards on early Wednesday. Among them, the HANG SENG becomes the biggest loser while BSE SENSEX stands on the other end.
The third consecutive day of protests in Hong Kong pushes it towards the “brink of a total breakdown”, as per the CNBC reporter Eunice Yoon’s tweet while quoting the city police. In a reaction, the national equity gauge, HANG SENG loses more than 2.1% by the press time.
Also exerting downside pressure on the Asian stocks is the United States (US) President Donald Trump’s readiness to announce more tariffs on China should it fails in the phase one deal. Though, the option of tariff reversal stays on the cards until the deal finalizes. Additionally, hawkish comments from the Federal Reserve (Fed) policymakers and the broad strength of the US dollar (USD) act as extra downers for the Asian equities.
In a reaction, the US 10-year Treasury yields seesaw around 1.92% while MSCI’s index of Asia Pacific shares ex-Japan declines 1.0% while Japan’s NIKKEI flashes -0.80% number by the time of writing. The Reserve Bank of New Zealand’s surprise step back from widely anticipated 0.25% rate cut weakened the Australian and New Zealand indices whereas India’s BSE SENSEX registers near 0.1% gain amid hopes of recovery in headlines inflation data.
Traders will now focus on the Consumer Price Index (CPI) numbers from the United Kingdom (UK), the US and Indian ahead of waiting for the Fed Chairman Jerome Powell’s testimony.
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