Yahoo Finance Asian Stocks Start Week Upbeat Despite Looming Trade War
Investing.com – Strong job data that helped to generally bolster confidence in the U.S. economy while pushing stock markets to solid gains on Friday, helped Asian markets start the week in positive territory in early morning trade Monday.
Despite a simmering trade war between the U.S. and seemingly everyone else, Asian markets looked eager to make a go at a rebound this week. The market in Tokyo was up strongly in mid-morning trade while Seoul was also in the green, although with less conviction. Markets in Hong Kong, Shanghai and Shenzhen opened in positive territory as well.
Asian markets seemed to be taking their cues from the strong performances Friday by the major U.S. indices. The S&P 500 Index closed up 1.08% on Friday and the Dow 30 0.90%. the Nasdaq finished the day up a strong 1.51%.
Markets across the region are still digesting the implications of a number of decisions that
U.S. President Donald Trump made to impose new tariffs of 25% on some US$50 billion worth of Chinese goods but also on steel and aluminium imports from close partners and possibly automobiles as well.
Talks between the U.S. and China ended Sunday without any kind of deal announcement and China threatening to void any previous commitments. In a widely distributed statement, China said that if “the United States introduces trade measures, including an increase of tariffs, all the economic and trade outcomes negotiated by the two parties will not take effect.”
The trade war headlines at the end of last week overpowered the inclusion of Chinese stocks in the MSCI emerging markets index and helped mainland China stocks retreat on Friday.
The Shanghai Composite Index lost 0.66% on Friday but was up 0.22% as 9:35PM ET (01:35 GMT), minutes after opening. The Shenzhen Component index finished down 1.23% Friday but was also up 0.27% minutes after opening on Monday.
Stocks in Hong Kong opened well in the green on Monday and was up 1.05% in early morning trade.
Japan’s Nikkei 225 was up 1.26%, continuing a rebound from Friday.
In Seoul, the KOSPI was up 0.34% while, in Australia, the ASX 200 was up 0.65%.
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