|Day's range||26,473.36 - 26,609.13|
|52-week range||24,540.63 - 30,280.12|
“Big day of negotiations with China. They want to make a deal, but do I? I meet with the Vice Premier tomorrow at The White House,” Trump said in a tweet Thursday.
US stocks trimmed their gains late in the session as the Trump administration announced it had agreed a limited deal on trade with China. Washington agreed to not raise tariffs, due to start next week, on Chinese imports in exchange for some concessions from the Asian nation, primarily on agricultural purchases. The S&P 500 finished 1.1 per cent higher, with news of the deal prompting a late sell-off.
After the sharp break early in the session, Asian shares mounted a powerful comeback rally to turn higher for the day after the New York Times reported Wednesday evening stateside that U.S. President Donald Trump’s administration is set to grant licenses that would allow American firms to sell nonsensitive supplies to Huawei.
Now, just one day before the start of trade talks, reports from China are saying the Chinese delegation may cut short its planned stay in Washington and depart on Friday, dimming hopes for a trade deal.
US stocks staged a late session sell-off as the Trump administration’s decision to impose visa restrictions on Chinese government officials connected to the mass detention of Uighurs in western China revived concerns about trade tension between the world’s two biggest economies. The late tumble saw the S&P 500 finish 1.6 per cent lower, the fourth move of 1 per cent or more in either direction — or its third 1-plus per cent drop — in the space of six sessions. The Nasdaq Composite shed 1.7 per cent and the Dow Jones Industrial Average was down 1.2 per cent.
U.S.-China trade talks are at the forefront, but investors are also monitoring the ongoing Brexit discussions and debating the degree of easing required from the Federal Reserve following the recent string of weakening U.S. activity indicators and the slowing in the labor market.
The benchmark Hang Seng index fell almost 3 per cent amid reports that chief executive Carrie Lam would use the “emergency regulations” ordinance to ban protesters from wearing face masks. Christy Tan, senior Asia markets strategist for National Australia Bank, said the volatility in Hong Kong stocks “shows investors are struggling and opinion is divided”.
An afternoon rally handed the S&P 500 its biggest one-day gain in nearly two months as the latest US jobs figures helped allay concerns about a domestic and global slowdown that have been brewing for most of the week. The S&P 500 finished 1.4 per cent higher on Friday in a broad-based rally that lifted all sectors. The Nasdaq Composite and Dow Jones Industrial Average each closed 1.4 per cent higher.
A weaker than expected headline number should drive the probability of a Fed rate cut to 100%. Treasury yields are likely to plunge and demand for safe-haven gold and Japanese Yen should jump.
Hong Kong protesters are donning disguises, including Guy Fawkes masks inspired by anarchist comic book V for Vendetta. Intensifying civil rights protests are spooking analysts as well as the Hong Kong government. Hong Kong dollar deposits posted a record monthly drop in August. Up to $4bn went to Singapore, according to Goldman Sachs. But such declines are still a small fraction of the dips seen over the past two years.
The breaking story on Thursday is that the World Trade Organization (WTO) gave the Trump administration the right to put tariffs on $7.5 billion in European goods.
Topsports International, China’s biggest sportswear group, has become the latest company to raise more than $1bn in an initial public offering in Hong Kong despite the territory’s long summer of political unrest. A term sheet seen by the Financial Times showed Beijing-based Topsports had priced over 930m shares at HK$8.50 (US$1.08). The shares are set to list in Hong Kong on October 10.
The benchmark Nikkei 225 index lost 0.49 percent or 106.63 points to end at 21,778.61, while the broader Topix index was off 0.42 percent or 6.71 points at 1,596.29. "The Nikkei index slid after US stocks tumbled on on weak manufacturing data," Okasan Online Securities said in a note. Kansai Electric (KEPCO) jumped 3.22 percent to 1,266 yen as the firm held a second press conference to explain the details of "gifts" executives had received from a local official.
Given the escalating violence in Hong Kong, traders will be keeping a keen eye on the Hong Kong retail sales data for August. The sector has taken a hit amid protracted protests in the city that have lasted for months and periodically degenerated into violence.
World shares edged higher on Tuesday after U.S. Treasury Secretary Steven Mnuchin confirmed that China-U.S. trade talks were due to resume in two weeks' time. Germany's DAX was up less than 0.1% at 12,346, while the CAC 40 in Paris rose 0.2% to 5,641. Markets in China were steady after China's central bank governor said policy will stay "stable and healthy," suggesting Beijing has no plans to join the United States and Europe in cutting interest rates to stimulate economic growth.
The major Asia Pacific stock indexes are mostly higher in the wake of interest rate and policy decisions from the U.S. Federal Reserve and the Bank of Japan.
Crude oil prices plunged on Tuesday after the Saudi energy minister said the kingdom’s oil supply will soon be back online. The drop in crude oil prices spread weakness throughout the Asia Pacific region on Wednesday.
Just as the Fed is set to ponder an interest rate cut amid fears of a US slowdown, the People’s Bank of China has kept its one-year interest rate steady.
Global stock markets sank Monday after crude prices surged following an attack on Saudi Arabia's biggest oil processing facility. Market benchmarks in Europe dropped after Asian markets mostly closed lower, while Wall Street futures were down slightly. Benchmark U.S. crude jumped $4.64 per barrel to $59.49 following the attack on oil producer Saudi Aramco's Abqaiq facility for which Yemeni rebels claimed responsibility.