Asian Stocks Recover From Friday’s Selloff

asian-stocks-recover

Last week, Asian stocks experienced a huge selloff following the concerns regarding the ongoing geopolitical concerns between North Korea and the United States. North Korea announced last week that it is currently conducting a review of its plans to strike U.S. military targets located in Guam with the use of medium-range ballistic missiles. This comes after U.S. President Donald Trump released a statement sending a warning against North Korea.

According to U.S. President Trump, North Korea must stop making threats or else the country would go out of its normal state and that they would be met with “fire and fury” as Trump stated. A North Korean representative then announced that Pyongyang would fire missiles at Guam at any sign of U.S. provocation.

KOSPI from Korea was down last week by as much as 1.7% after it hit its third straight session in a downward direction. Benchmarks from Hong Kong and Shanghai was also down by around 1.6% during Friday’s session with Tencent losing 4.9% on Friday;s session.

However, Asian stocks were mostly positive on Monday’s early trading following a disappointing U.S. inflation data released last week that weakened market hopes of another interest rate hike from the Federal Reserve this year.

The Hang Seng index from Hong Kong gained 1.2% to 27, 198.59 while the S&P ASX 200 index in Australia rallied by 0.6% to 5,729.70. The Kospi also recovered 0.6% to 2,333.64.

The Nikkei in Japan lost 1.2% despite a positive second quarter economic growth. This was due to the stronger Japanese yen.

The Shanghai Composite index also gained 0.4% to 3,221.27. Most markets in China were higher despite a weak series of data released during Monday’s session missed most expectations.The factory output in China for July only rose 6.4% from the period last year compared to expectations of a 7.2% rise in the factory output data. Fixed-asset investment, however, rose 8.3% from the beginning of the year until July but still missed most growth estimates of 8.6%.

The Asia-Pacific MSCI index was up by 0.4% after declining for the past three sessions in a row due to the ongoing tension between North Korea and the United States.

The ongoing geopolitical issues between the two countries are expected by the markets and analysts to influence the Asian markets in the following trading sessions. Trump has also recently opened an investigation regarding allegations of unfair trade practices in China. However, both press outlets and the markets have commented that this might negatively affect the relationship between the United States and china.

Join the best forex broker and follow us for more up to date news and latest stock market news.

Courses Video

Best Brokers Promotion

olymp-trade-review

Refer a friend bonuses available

More
trade12-review

100% welcome Bonus

More
ironfx-review

100% Bonus and 20% Bonus

More
finprotrading-review

100% deposit bonus

More
xm-review

Deposit bonus up to $500,  Zero fees on deposit and withdrawals

More