⌛ Did you miss ProPicks’ 13% gains in May? Subscribe now & catch June’s top AI-picked stocks early.Unlock Stocks

Asian Equities Rebound; Global Calls for Calm as U.S.-Iran Tensions Rise

Published 01/06/2020, 10:51 PM
Updated 01/06/2020, 10:53 PM
© Reuters.

Investing.com - Asian markets rebounded on Tuesday in Asia as global leaders urged the U.S. and Iran to exercise restraint.

China’s Shanghai Composite and the Shenzhen Component traded 0.4% and 0.7% higher by 10:40 PM ET (02:40 GMT).

Hong Kong’s Hang Seng Index climbed 0.6%.

Japan’s Nikkei 225 advanced 1.3% even after the country’s service sector recorded its deepest contraction in more than three years in December.

The final seasonally adjusted Jibun Bank Japan Services Purchasing Managers' Index (PMI) fell to 49.4 in December from 50.3 in November, declining to its lowest level since September 2016.

South Korea’s KOSPI gained 0.7%.

Calm has seemingly returned to global markets today as investors entered a wait-and-see mode.

Sentiment remained cautious however, as the U.S. has ordered additional forces to the Middle East. President Donald Trump said the Islamic Republic will “never have a nuclear weapon”

“Geopolitical tensions remain centre stage with markets clearly in wait-and-see mode,” Tapas Strickland, director of economics and markets at National Australia Bank, wrote in a note on Tuesday.

“The potential for this to spiral into a cycle of retaliation remains and markets will likely remain cautious,” Strickland said, referring to U.S.-Iran tensions.

Down under, Australia’s ASX 200 gained 1.1%. The country’s major dairy industry is set to be affected by ongoing bushfires as affected regions account for around a third of Australia’s output, a Reuters report noted.

Bega Cheese, the country’s largest processor, saw its shares plunged as much as 10% on Monday, before rebounding more than 1% today. It said Monday that its production facilities have not suffered any impact from the fires, but a number of its suppliers were affected.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.