|Day's Range||9,718.94 - 9,818.95|
|52 Week Range||9,400.69 - 11,270.18|
(Bloomberg) -- The power of news headlines is back, and a renewed dose of trade optimism is finally lifting Asian stocks from a six-week low.
While news that top Chinese and American trade officials talked over the phone helped the region’s shares almost erase early Tuesday losses, the MSCI Asia Pacific Index soon headed back in the red. There’s been a deluge of bad news in recent days -- from the unsolved case about the arrest of Huawei Technologies Co.’s chief financial officer to the surprise exit of India’s central-bank governor on Monday evening -- and the optimism seen after the 90-day trade truce between the U.S. and China is far gone. Since Dec. 3, Asian stock markets have already lost more than $1 trillion in market value, with the regional gauge trading at a six-week low.
The sell-off in global equities deepened in Asia hours after Chinese economic data released over the weekend signaled a further weakening of both domestic and international demand in November. Adding insult to injury, tensions have ratcheted up after the arrest of Huawei Technologies Co. Chief Financial Officer, with China’s Vice Foreign Minister having summoned the U.S. Ambassador to China in a protest over her capture on Saturday. Australia was the worst performer in the region with Japan’s, whose economy shrank more than forecast, while China’s stocks dropped with the offshore yuan weakening for a fourth day.
Monday’s 2 percent surge in Asian stocks is now all gone. Tuesday’s slump was mainly due to a big sell-off in Japan amid profit-taking and concerns surrounding the lack of clarity around the 90-day trade-war cease-fire. Then U.S. stocks plunged overnight and, by extension, the decline came to Asia.
Here is where we are: Asian shares took a breather Tuesday, with the MSCI Asia Pacific Index coming off from an almost two-month high. Chinese shares fluctuated between gains and losses, and Hong Kong’s Hang Seng Index ended up rebounding after falling 0.7 percent. The theories swirling around the short-lived rally in Asian stock markets include:A lot could happen in 90 days and there hasn’t been much clarity past that.
Stock markets are up for a third day in a row, setting the scene for the first monthly gain since July. Volatility on the MSCI Asia Pacific Index has been on a downward trajectory and is currently sitting at a level not seen in seven weeks, before the major U.S. sell-off. Simple: the big dinner that Donald Trump and Xi Jinping will have on Saturday in Buenos Aires.
(Bloomberg) -- Stock markets in Asia have kicked off the week with a nice lift: Hong Kong’s benchmark index rallied almost 2 percent, South Korean equities jumped more than 1 percent, and Taiwan, the Philippines and Singapore also had good starts.
Investors “were expecting tariffs of 25% and instead only got ones of 10% for now so the reaction is quite positive.”