Asian and Australian stocks mixed on Wednesday at the overnight bounce on Wall Street. Traders also show concerns over trade tensions between China and the United States.
The US dollar also pared a decline and treasuries were little changed. Equity benchmarks shift across the region and the US equity futures declined.
Japan’s Nikkei 225 dropped 0.11 percent and the broader Topix fell short by 0.07 percent. Automakers traded higher while lender stocks felt pressure.
South Korea had the biggest drop among Asian markets. The Kospi index shed 0.78 percent, weighed down by declines in the technology sectors as Samsung Electronics’ index lost 1.5 percent. Steelmakers Posco slid by 1.38 percent.
Some of the Greater China’s bourses were also mixed at the Wednesday’s opening.
Gains in commodities, seen as a defensive sector to the economy, were offset by losses in technology stocks with Tencent sliding by 0.68 percent. Hang Seng China Enterprises index added 0.1 percent before moving into negative territory. The CSI 300 index of major stocks in Shenzhen and Shanghai was up 0.5 percent. Shanghai Composite index gained 0.8 percent increase and Shenzhen Composite gained 0.64 percent. Finally, the broader Hang Seng was down 0.1 percent after initially adding 0.4 percent.
Over in Australia, the S&P/ASX 200 index eased 0.08 percent. The financial sectors shed 0.31 percent as all of Australia’s ‘Big Four’ banks traded lower.
The MSCI’s index of stocks in Asia Pacific, excluding Japan, was off by 0.08 percent. This is a result after US stocks rose in the last session’s gain in technology stocks, which has fallen on Monday.
Despite some problems in the technology sector, mixed stock closing of Asian countries and Australia, and volatile price actions were experienced as a result of China and US trade tariffs, the Wall Street experienced a little gain compared to its previous session.
Trade Tensions Continue to Simmer
The increasing trade tension between China and the United States continues.
“This trade tension story is the biggest uncertainty for China from the external perspective and the story is developing every day,” an economist at J.P. Morgan said on the news, “Trade war, or the tariffs, are never a zero sum game. It is actually a lose-lose situation. China will probably lose more, but the US will also suffer,” he added.
China’s embassy in Washington stated, “Such unilateralistic and protectionist action has gravely violated fundamental principles and values of the WTO. It serves neither China nor US’ interest, even less the interest of the global economy.”
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