Asian stock open higher as Trump delays tariffs

2019-09-12 08:51:08 GMT (Economies.com)
Asian stock open higher as Trump delays tariffs

Asian stock opened mostly higher today, with the Japanese, Chinese, Australian and New Zealand's stocks rising, while Hong Kong's Hang Seng fell after Hong Kong's $36.6 acquisition offer to the London stock exchange, while the South Korean Kospi was off duty today in observance of a public holiday.

 

The Asian market drew support from US President Trump's tweets via his official Twitter account, in which he announced delaying the $250 billion tariffs increase on Chinese imports from 25% to 30% for nearly two weeks in a goodwill gesture, until October 15th.

 

Trump said that the Chinese Vice Premier Liu He requested that, and especially that the People's Republic of China will celebrate its 70th anniversary on October 1st, they agreed to delay the $250 billion tariffs increase on Chinese imports from until October 15th.

 

 Which comes after the Chinese Ministry of Finance announced on Wednesday that 16 US products would be exempted from 25% tariffs that were imposed since last year on animal food and oil products, with a 1-year exemption from September 17th.

 

Bearing in mind that these developments have improved investors' risk appetite and raised the market's hopes of resolving the trade war, ahead of the next round of talks in Washington early next month, while analysts remain skeptical that the two sides will reach an agreement in that upcoming round.

 

 The markets are also anticipating the ECB decisions and Governor Mario Draghi's press conference later today, with forecasts for the ECB to cut interest rates to a negative range and to announce quantitative easing policies to to stimulate the european economy.

 

A week ahead of the US Fed's meeting on 17-18 of September in Washington, as the bank's committee is expected to offer a 25bp rate cut for the second consecutive meeting to between 1.75% and 2.00% from 2.00% and 2.25%.

 

While by next Wednesday, the Fed's meeting will be followed by its members' forecasts on growth, inflation and unemployment, as well as the future of the short-term interest rates for the next three years, noting that President Trump renewed his criticism of the Fed and its governor Jerome Powell yesterday, and demanded that the rate be cut to zero levels or below.

 

The Japanese stocks saw a rise today, with Topix rising by 0.66% or 10.51 points to reach 1,594.17 points, and Nikkei 225 also rose by 0.83% or 180.28 points to 21,778.04.

 

The Chinese stocks also rose, as the CSI 300 rose by 0.51% or 19.98 points to 3,950.08, and the Shanghai Composite rose 0.24% or 7.23 points to 3,016.04.

 

While Hong Kong's Hang Seng fell by 0.19% or 50.47 points to 27,108.59.

 

To New Zealand's NZX 50, which rose by 0.06% or 6.10 points to 10,930.98, and the Australian S&P/ASX 200 rose by 0.25% or 16.26 points to 6,654.30. 

 
 
 
  Symbol Last Change Chg.%
1.1019
-0.0001
0.0065%
1.2472
0.0003
0.0236%
17.964
0.513
2.940%
58.477
3.583
6.527%
64.28
-0.12
0.19%
1516.410
27.430
1.842%
 
 
US
 
Europe
 
Asia