Asian stocks open mixed amid geopolitical tensions

2019-09-17 09:42:13 GMT (
Asian stocks open mixed amid geopolitical tensions

Asian stocks opened mixed today as the Japanese stocks were mixed, the Chinese and Australian and Hong Kong's Hang Seng fell, while the New Zealand stocks and the South Korean Kospi irose, as the markets are still pricing the Saudi attacks, in addition to the decisions of several global central banks and the US trade talks with Japan and China.


Yesterday, President Trump accused Iran of being behind the attacks on Saudi Arabia, despite the Houthis' claiming responsibility of disrupting about 5% of the global oil supplies, Trump also stressed that he does not want to go to war, reflecting a tone less subtle than his initial reaction.


The People's Bank of China today eased the medium-term lending  procedures to attract liquidity and offered loans worth 200 billion yuan ($28.27 billion), but kept its one-year lending rate unchanged at 3.30%, abd many analysts believe that China will cut interest rates on new loans by next Friday.


This came after the bank announced earlier this month the reduction of the banks reserve requirements, which came into effect last week and been reduced by 50 basis points, and also for some eligible banks it has been reduced by 100 basis points, while the Chinese economy is also planning on providing liquidity of 800 billion yuan ($113 billion).


While the US Fed meeting will start today and finish tomorrow in Washington, with forecasts of a rate cut by 25 basis points for the second meeting to between 1.75% and 2.00%, with the reveal of the members forecasts on growth, inflation and unemployment rates as well as the future of interest rates for the next three years.


While the Fed Chairman Jerome Powell will hold a press conference tomorrow after the meeting, to comment on the bank's decisions which has recently been criticized by President Trump, as he wants the interest rates to be cut to zero or below.


Ahead of the BOJ meeting in Tokyo on thursday, with forecasts that if the Fed cut interest rates that may put pressure on the BoJ to increase stimulus, which comes after the ECB has cut interest rates by 10 basis points to minus -0.50% and the relaunch of 20 billion euros bond-buying program by November.


President Trump also said yesterday that the US has reached preliminary trade agreements with Japan, ahead of a new round of the US-China trade talks in Washington next Thursday.


The Japanese stocks saw a mixed performance today, with Topix rising by 0.24% or 3.92 points to 1,613.79 points, while  Nikkei 225 fell by 0.11% or 23.55 points to 21,964.74.


The Chinese stocks fell, as the CSI 300 shed 0.79% or 31.32 points to 3,926.40, and the Shanghai Composite fell by 0.95% or 28.76 points to 3,001.99.


Hong Kong's Hang Seng shed 0.90% or 244.14 points to 26,880.41, while South Korea's Kospi rose by 0.15% or 3.05points to 2,065.27.


To New Zealand's NZX 50, which rose by 0.50% or 54.04 points to 10,885.79, and the Australian S&P/ASX 200 fell by 0.01% or 0.98 point to 6,672.50.

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