Recently, Asia Pacific markets were higher during trade as shareholders digested the new developments on U.S.-China trade. The Nikkei 225 index in Japan surged 0.77% whilst the Topix index recovered 0.67%. South Korea’s Kospi index earned by 0.83% since shares of chip producer SK Hynix climbed by 1.92%. Hang Seng index in Hong Kong rose by 0.27% in afternoon trading as the shares of life insurer AIA advanced by over 1%. In the meantime, the S&P/ASX 200 index in Australia gained 0.87% to settled at 6,793.70 since the heavily weighted financial sub-index climbed by 0.51%. On the other hand, Chinese stocks were trading lower: the Shanghai Composite was lower by 0.11% and the Shenzhen Component dropped by 0.29%. The Shenzhen Composite also declined by 0.335%.
In general, the MSCI Asia ex-Japan index was trading higher by 0.62%. The financiers continued to track U.S.-China trade progress. Larry Kudlow—the White House Economic Adviser—said that Washington is “getting near” to a trade agreement with Beijing, as reported by Reuters. The markets were on edge this week in the midst of uncertainty due to the situation of U.S.-China trade negotiations. Previously, this week, reports came that talks amid the leading economies hit a snag over agricultural commodities. Gao Feng—Spokesman for Chinese Ministry of Commerce—said that both nations are holding deep talks about a “phase one” truce, but noted that the rolling back of some levies is a solution to reach an agreement.
On a related note, lately, an economist from Credit Agricole stated that Chinese yuan can rise to 6.90 per US dollar if the “phase one” agreement is signed. Quoting the other name of the Chinese currency, Dariusz Kowalczyk—Chief Economist (China) at the French bank—said to CNBC, “We think that if the phase one deal is attained, counting no more tariffs, then there is scope for the renminbi to appreciate. There are certainly doubts regarding this phase one deal. But in the end we believe there is an 80% possibility that it will be inked in this quarter and if that ensues, the renminbi will possibly drop to towards 6.90.”
With the same dreams as that of the Industry News Digest’s goals, Barbara too is a well-known person here at our news portal. She looks after and manages the Business department. Certainly, having a significant amount of knowledge in this area, Barbara is the one that manages all the business operation of the firm too. You’ll often find her immersed in experiential theatre, savoring chocolate, on two wheels, and in awe of height.