BEFORE TRUMP-XI MEETING: ASIA STOCKS INCHED LOWER

md 0 Comment

On Tuesday, Asian stocks have dipped an inched lower. This happened just before a tense summit between U.S. President Donald Trump and his Chinese counterpart Xi Jinping, which is about to held later this week.

After investors sold stocks overnight, the dollar lost ground. This happened after political uncertainty overshadowed U.S. economic data and solid growth in manufacturing. MSCI’s broadest index outside Japan fell 0.2% and Japan’s Nikkei slumped 1.1% because of weaker-than-expected U.S. sales tumbled automakers.

The worst performer, Toshiba Corp, tumbled 9.5% and on Tuesday, it is about to meet creditor banks to make them agree to accept them as collateral shares in some of the businesses. On the other hand, the Australian dollar slid by 0.3% as the central bank hold rates steady at low 1.5 percent as expected.

Moreover, the summit between U.S. President Trump and Chinese President Xi will also influence upon Asian markets. Last week, in a Tweet, Trump said it is a highly anticipated meeting and is looking forward to cover differences over trade, which could be difficult.

On Monday, European stock markets were on 16-month high, whereas U.S.’s 10 year treasury yield fell to 2.3318. and touched 2.321 overnight, a five-week low. With this the dollar slipped 0.4 % to 110.42 yen.

Author

Joseph Blanchard

For any feedback and suggestions contact author at Joseph.Blanchard@themarketdigest.org

Leave a comment

Back to Top