Asian stocks fail to echo Wall St.’s lead as trade tempers intrude

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Asian stocks fail to echo Wall St.’s lead as trade tempers intrude

On Friday, the 21st of June 2019, a basket of Asian stocks appeared to be struggling to break into an affirmative territory despite Fed’s go-ahead signal of an interest rate cut later next month, as spurring trade tension had been dominating investors’ mood over the Central and Southeast Asia, meanwhile Asia minor had been vying to vent worries of geo-political concerns following Iran’s attack on a US drone, which again had raised fresh frets of a military confrontation between Tehran and Washington.

None the less, amid a clouded market sentiment, the MSCI’s broadest index of Asia Pacific shares outside Japan rose 0.1 percent, though it had been experiencing a swaying movement between the reds and the greens. The Asian Index was up by 4 percent this week so far, while the mainland Shanghai added 0.4 percent, ASX 200 shed 0.3 alongside Tokyo’s Nikkei 225, which slipped 0.2 percent following large gains of Japanese Yen against American dollar.

Emphasizing on Trump-Xi meeting later next week which could add a major twist over the market movement, a senior emerging market economist at SMBC Nikko Securities in Tokyo said, “There is no doubt that this week’s FOMC meeting outcome is positive for the financial markets including those in Asia.

That said, the FOMC alone won’t be able to sustain Asian equities indefinitely until some kind of solution can be worked out for the U.S.-China trade war at the G20, since the region is particularly vulnerable to the conflict,” meanwhile Hong Kong alongside Bombay stock exchange had opened the day broadly lower, down by 0.49 and 0.60 percent respectively.