Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Asian Stocks Rise Despite Lingering Trade Concerns

Published 07/11/2018, 09:27 PM
Updated 07/11/2018, 09:27 PM
© Reuters.  Asian stocks rose in morning trade on Thursday

© Reuters. Asian stocks rose in morning trade on Thursday

Investing.com – Asian stocks rose in morning trade on Thursday despite lingering concerns around the U.S. and Chinese trade war.

Markets continue to deal with the possibility of escalation in the dispute between the two nations after the Trump administration threaten to impose tariffs on $200 billion in Chinese goods on Wednesday. The 10% tariffs will not take effect immediately but will undergo a two-month review process.

In response, China's commerce ministry said in a statement released around midday on Wednesday that it was "shocked" by the latest U.S. trade action and urged international community to work together against the trade bullying, while calling the actions "completely unacceptable".

The news came just days after tariffs from the U.S. and China on $34 billion in products from each country took effect last week.

Overnight, U.S. stocks fell on the back of the latest developments in the ongoing trade dispute: The Dow Jones Industrial Average declined 0.9%, the S&P 500 slid 0.7% and the NASDAQ Composite edged down by 0.56%.

The Shanghai Composite and the Shenzhen Component were 1.3% and 1.6% higher by 9:40PM ET (01:40 GMT). Hong Kong’s Hang Seng Index climbed 0.3%.

Reports on Wednesday suggested that Beijing is ready to “hit back in other ways,” and is considering options including delaying approvals of mergers and acquisitions involving U.S. companies, holding up licenses for U.S. firms and “delaying and ramping up” inspections of American products at borders.

Chinese telecom company ZTE Corp (HK:0763) received some attention as the Trump administration said the company has signed an escrow agreement with the Commerce Department and its ban will be lifted as soon as the company deposits $400 million in escrow.

“Once the monitor is selected and brought on board, the three-pronged compliance regime -- the new 10-year suspended denial order, the $400 million escrow, and the monitor -- will be in place,” Commerce said on Wednesday in a statement. “The ZTE settlement represents the toughest penalty and strictest compliance regime the Department has ever imposed in such a case. It will deter future bad actors and ensure the Department is able to protect the United States from those that would do us harm.”

Elsewhere, Japan’s Nikkei 225 jumped 1.2%, while South Korea’s KOSPI rose 0.3%. The Bank of Korea's meeting concludes Thursday, with economists expecting officials to hold their key rate at 1.5%.

Down under, Australia’s S&P/ASX 200 gained 0.8%.

Latest comments

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.