Asian shares drift, as Trump tilts on China, Fed

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Asian shares drift, as Trump tilts on China, Fed

On Wednesday, the 12th of June 2019, a basket of Asian shares had witnessed a hesitant start, while most of them had been hovering in a negative territory, following US President Donald Trump’s tough stance on China trade negotiations.

While this report was being prepared, mid-day Asian trading hours, the market appeared to be moderating with MSCI’s index of Asia-Pacific shares outside Japan had been down by 0.38 percent after gaining for two consecutive days.

Elsewhere, Japan’s Nikkei had been treading water, while mainland Shanghai shed 0.5 percent after gaining as much as 3 percent yesterday (June 11th). For the moment being, investors seemed to be waiting for Fed’s decision on rate, however, poor US inflation data and a robust labor market would unlikely to rattle Fed Chair Jerome Powell from his patient stance.

Apart from that, after Mexico treaty, despite all odds, Trump would highly likely to reach a resolution on trade with Chinese President Xi Jinping on a G20 summit due to held later this month, as President Trump would unlikely to go for a 2020 presidential election with a tariff war hanging fire over his head.

Elsewhere in Asia, Nikkei lost 0.35 percent so far, while Hong Kong drowned by 1.86 percent, while hundreds of thousands of demonstrators had been storming the roads to government’s office at a protest against an extradition.

Meanwhile, Bombay stock exchange was down by 0.66 percent to 39.688.15, while telco sectors had been the worst-performing majors so far.