Asian stock markets buoyant despite rising trade tension
The main Asian stock markets have climbed overnight despite the raging US-China trade war after Beijing hinted at stimulus for its economy.
Read more: Markets drop as US and China enter fierce war of words
Investors’ spirits were lifted after China’s state planning office said it would act to increase disposable income.
China’s Shanghai composite index was up 0.8 per cent as it raced towards the close, Hong Kong’s Hang Seng was 0.8 per cent higher, and Japan’s Nikkei was up 0.2 per cent.
Yet in South Korea the benchmark Kospi dropped 0.9 per cent after North Korea fired two rockets into the Sea of Japan.
The main Asian markets performed better than their US counterparts, however, which suffered under a war of words between the Beijing and Washington.
The S&P 500 finished 0.3 per cent higher, the Dow Jones finished 0.4 per cent higher, but the tech-heavy Nasdaq ended 0.1 per cent down.
Markets were troubled by China’s threat of retaliation to US President Donald Trump’s 10 per cent tariffs on $300bn of Chinese goods.
Trump, too, raised tensions by saying any deal between the two sides had to be on US terms.
European stock markets fell across the board, with the FTSE 100 dropping 1.1 per cent, but are expected to open higher today.
“A mid-session wobble was in response to comments from China, hinting at its response to the latest US tariff moves,” said Ian Williams, economics and research strategy analyst at Peel Hunt.
Better-than-expected US retail figures cheered investors yesterday, however, and “suggested recession fears are overdone,” said Williams.
David Madden, market analyst at CMC Markets, said the “FTSE 100 is expected to open 36 points higher at 7,103”.
Read more: Donald Trump suggests meeting with Xi Jinping over Hong Kong and trade
Germany’s “Dax is expected to open 58 points higher at 11,470”, while France’s “CAC 40 is expected to 24 points higher at 5,260.”