Asian Stock Exchanges Anxious albeit Huawei Lift
STOCK EXCHANGES – Asian stock markets were anxious on Wednesday in spite of the US government’s decision to lift Huawei restrictions temporarily. The news failed to curb worries over a worsening trade war between the US and China.
Chinese stock markets struck a cautious tone, with the Shanghai Composite Index last trading a fraction lower.
In Australia, stocks were flat. South Korea’s KOSPI inched 0.2 percent higher and Japan’s Nikkei added 0.1 percent.
MSCI’s broadest index of Asia-Pacific shares ex-Japan oscillated in and out of the negative territory and was last trading 0.1 percent in the green.
Meanwhile, the Euro STOXX 50 futures slipped 0.03 percent lower during the start of the European trade. In Germany, DAX futures rose 0.01 percent. In Britain, FTSE futures gained 0.28 percent.
“Some in the markets will continue to cling on to hopes of the United States and China reaching an agreement at the upcoming G20 meeting,” said a senior strategist. “But the ongoing trade conflict looks to be a protracted one, and its potentially negative impact on various economies is becoming a running concern.”
The US Commerce Department has recently granted Huawei Technologies a temporary license to buy US goods until August 19.
However, signs of further spat between the two surfaced after a report said that the US could place limits on Chinese video surveillance firm Hikvision’s ability to purchase US tech.
“Notwithstanding the latest tweet from President Trump that some restrictions had been eased, global equity markets have continued to underestimate the relentless expansion of the US-China trade dispute,” said an equity strategist.
Figures Other Markets
Meanwhile, in the currency markets, the dollar traded at 110.460 yen after hitting a two-week high of 110.675. US yields rose amid the gains in Wall Street shares.
The euro moved little at $1.1156 after briefly touching a two-and-a-half-week trough of $1.1142.
The British pound was firm at $1.2712. It had plummeted to a four-month low of $1.2685 on Tuesday due to worries over Brexit. It recovered some grounds after British Prime Minister Theresa May proposed a “new” Brexit deal.
The Aussie dollar slipped 0.1 percent to $0.6878. It had slumped the previous day after Australia’s central bank indicated that interest rates might be lowered as soon as next month.
In the commodities market, US West Texas Intermediate (WTI) crude futures sunk 0.89 percent at $62.57 per barrel after American Petroleum Institute data showed that US crude stockpiles grew unexpectedly last week.
Brent crude futures dropped 0.62 percent, trading at $71.73 per barrel.
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