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Stock Market Today: Asian Shares Decline; Dollar Approaches 13-Month High

On Friday, Asian stock markets dropped despite signs of greater support of the government for firms in China. This is along with the global trade tensions dimming the demand outlook.

Meanwhile, the US dollar approached at a near 13-month high amid the escalating concerns as Washington loaded pressure on the Russian ruble and pushed the Turkish lira to record lows.

MSCI’s broadest index of Asia-Pacific shares outside Japan declined to 0.5%.

The South Korean tech companies’ decrease pulled the Seoul’s Kospi down 0.7 percent. This is amid the emphasis on the country’s finance on high oil prices and U.S. interest rate hikes as risks.

Stock Market Today, Stock Market Today: Asian Shares Decline; Dollar Approaches 13-Month High
Asian markets hit lower on the ongoing US-China trade war

The shares on China decreased on the worries over the tit-for-tat Sino-U.S. trade tensions with the 0.1% dip of the Shanghai Composite index. However, the tech-savvy ChiNext Composite index made a 0.6% increase, extending robust gains from Thursday.

Chief Investment Officer Josh Sheng of Shanghai Tongshengtonghui Asset Management said that China reflected moves in boosting local firms. This includes the restoration of a government leadership group to focus on supporting homegrown technology.

“The market in China is ‘risk on’ thanks to government support policies and rising infrastructure investment. I am optimistic about the A-share market for the rest of 2018,” he said.

Japan’s Nikkei stock index made a 0.5% decline despite the presence of data on the expansion of the country’s economy at a faster-than-expected annualized rate. U.S. President Donald Trump is insisting Tokyo for a free-trade agreement. Moreover, Trump threatened to impose higher tariffs for Japan’s auto imports.

Following the central bank’s growth forecasts largely unchanged, however, had cut its near-term estimates for inflation, Australian shares went static. Meanwhile, Wall Street directed the Asian markets with the Dow Jones Industrial Average making a 0.29% decline, the S&P 500 trading further lower to 0.14 and the Nasdaq Composite making a 0.04 gain.

The S&P E-mini futures dropped to 0.1% at 2,849.75. Moreover, the US Treasury yields decreased with 2.9276 % on its yield on benchmark 10-year Treasury notes. This is lower than the 2.935% at its previous U.S. close.

Investors are anticipating the release of July’s U.S. consumer price inflation (CPI) report to spot possible clues on interest rates and signs of impact from the new tariffs. The data is likely to show a 0.2% increase in inflation after the 0.1% high in June.

Stock Market Today: Asian markets record further low amid US-China trade war

On Friday, Asian stocks recorded further low on investors’ assessment on the impact of the latest tit-for-tat in the trade dispute between the United States and China.

The Shanghai Composite made a rebound after seven consecutive gains of more than 1%. Further, it traded 0.1% lower. Meanwhile, the Shenzhen Component lifted to 0.4% while there was a 4% decline in the Hong Kong’s Hang Seng Index

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