Asian stocks follow Wall Street on green

2019-06-11 07:40:58 GMT (

Asian stocks opened in green on Tuesday to join their US counterpart, which is still supported by optimism as the United States reached a deal with Mexico last weekend, under which the decision to impose 5% tariffs on Washington imports from New Mexico, which was supposed to come into force early this week.


In addition, we note that the optimism in the financial markets is also supported by the slower pace of job creation in the US than in the previous month, which has increased the chances for monetary policy makers to reduce the interest of the federal funds. This comes ahead of the start of the meeting of the Federal Open Market Committee in Washington.


In another context, we would like to point out that the optimism we are currently witnessing does not reflect the reservation that the trade war between the United States and China has not been calmed down and continues to be threatened in one form or another by the US administration, which is pursuing trade protectionism with many global countries, such as China and one of its largest companies, the Chinese technology giant Huawei.


US President, Donald Trump, said in an interview with CNBC that a trade deal with China could be reached because of tariffs and with the Huawei case as part of the trade deal with China, noting that the economic outlook for the US in the first quarter exceeded expectations due to tariffs.


Meanwhile, Trump threatened to increase tariffs on Chinese imports if president, Xi Jinping, did not attend the G20 summit later this month in Japan. Saying that Beijing should reach a trade agreement with Washington because of its need to reach an agreement, adding that China is currently being completely destroyed.


Trump also said that foreign companies were leaving China and heading to other countries including the United States, saying that a lack of a trade deal with China would mean more tariffs, adding that tariffs are a good thing and gives America a huge competitive edge, "We were talking about an agreement with Mexico for months and there was no agreement till we imposed tariffs."


Trump recently noted that China could expect to face more tariffs on its exports to the country, adding that America has already prepared a list of Chinese goods worth $300 billion, and that this list may be subject to additional fees, in the wake of the Washington-Beijing tariffs raise last month on each other's goods to 25% from 10% in the escalation of trade protectionism between them.


Japanese stocks rose during today's trading session, with the broader Topix index rising by 0.48% to gain (7.53 point) up to 1,560.47, while Nikkei 225 index also rose by 0.35% (73.67 points) up to 21,208.09.


As for the Chinese stock indices, CSI 300 rose 2.10% to gain 75.85 points up to 3,686.59, the Shanghai Composite Index also rose 1.63% (46.58 points) up to 2,898.71.


As for Hong Kong's Hang Sang, it rose 0.77% (211.15 points) up to 27,789.79. While South Korea's Kospi Index also rose 0.28% (5.92 points) up to 2,105.41.


To New Zealand's NZX 50, which rose 0.84% (84.59 points) up to 10,112.20. While Australia's S&P/ASX 200 index also rose 1.30% to gain 83.51 points up to 6,527.40.

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