Back to the Blog Main Page
25/06/24
180
Stocks Across Asia Recorded Gains
On June 25, stocks across Asia recorded gains, representing a recovery as investors looked forward to further cues on a possible trade war between China and the West, as well as forthcoming inflation readings.
Markets in China became stable following steep losses recorded in 3 days as ministers from Europe and China discussed import tariffs on Chinese electric vehicles. However, sentiment towards China is still fragile.
Wall Street influenced regional markets, with solid stocks related to chipmaking ending on the downside, while United States futures traded sideways in the Asian session. Markets are majorly focused on the Fed’s most preferred gauge for inflation (PCE Price Index), which is expected to be released on Friday. The data is a factor to consider when it comes to the outlook for United States interest rates.
The expectations regarding inflation readings sustained markets across Asia on the downside, with general gains limited by weakness in tech shares. In the Chinese market, Shanghai Shenzhen CSI 300 and Shanghai Composite indexes recorded a 0.1 percent uptick respectively, and Hong Kong’s Hang Seng index rose by almost 1 percent.
Chinese officials’ warning about a potential trade war with the European Union due to new import duties on Chinese EVs prompted sharp losses in the three indexes recently. Discussions between German officials and Chinese ministers included a possible reduction or total lifting of tariffs, scheduled for implementation next month.
However, Canada was contemplating curbing EV imports from China, similar to the EU and United States. This may bring about further tension in the relationship between China and the West.
According to a report by Reuters, the current administration in the U.S. was investigating leading Chinese telecom companies regarding potential security concerns. The report also had a negative effect on sentiment towards China.
Promotions
