On Thursday 21 May, Asian stock markets were mixed after Wall Street plunged in the face of trade tensions between China, Australia, and Washington. This jump is a result of gains for tech stocks, communications companies, and banksWall.
Following the outbreak of the Coronavirus, Beijing’s economy has been negatively hit. Investors anticipated China’s legislature Friday meeting on possible ways to savage Beijing’s impacted economy.
Shanghai and Seoul’s benchmark jumped by 0.1% to 2,886.60 and 0.5% to 1,999.69 respectively. While Tokyo’s benchmark declined by 0.1% to 20,583.95. On the other hand, Australia and Hong Kong had low changes.
Investors remain positive amidst skyrocketing numbers of COVID-19 cases in the United States, Brazil which is now the third country with the highest numbers of cases in the world and other countries.
However, uncertainties loom over trade tensions between China, Washington, and Australia. This conflict is as a result of trade and Beijing’s technology goals.
Australia had supported an investigation into the outbreak of the pandemic disease in Wuhan mainland China. Following this, China had stopped the importation of beef from 4 Australian suppliers.
In the same breath, the United States intensified dispute over Beijing’s industrial ambitions by tightening controls on the use of U.S. technology by tech giant Huawei a Chinese multinational technology company.
The United States slid into the second half of the fight against the pandemic disease where businesses and schools would swing back open and the economy slowly reopens again. This has left the US Stocks high by hopes of developing a potential vaccine for the pandemic disease.
In March, China’s economy also swung back open. However, the nation is yet to disclose its stimulus spending plans. Japan, the United States, and other major countries have announced their nation’s stimulus spending plans.
Forecasters suppose Beijing as a result of its hard-hit economy would put more funds into employment opportunities, creating jobs to reduce the jump in unemployment and provide money for consumers.
Esty Dwek of Natixis IM made known that the renewed trade tensions among these countries would affect markets in the following months.
Korea’s government reported a 20.3% trade decline between May 1- 20 in juxtaposition to April’s 26.9% trade decline. Japan’s also recorded its exports declined by 22% in April 2019.
The Price of crude oil improved in May following the cut down of outputs by nations producing crude and also the swinging back of economies increased demand for crude oil.
At the start of 2020, crude was about $60 which declined greatly following the impact of the outbreak. Businesses were shut and global travel stopped which made demand for crude decline.
While Euros remain the same at $1.0960, dollars dropped to 107.62 yen from 107.71 yen on Wednesday.
