On Monday, the 24th of June 2019, a stack of stock indices across Asia appeared to be treading water ahead of a critical G20 summit later this week in the Japanese city of Osaka, while investors seemed to be hesitant to put their money on riskier assets over frets of further escalation of an excrutiating Sino-US trade spat.
While, MSCI’s broadest index of Asia-Pacific shares outside Japan had added 0.2 percent, hovering close to its six-week high reached last Thursday (June 20th), Japan’s Nikkei 225 had added 0.1 percent and European stock exchanges were opened slightly higher with Europe’s Pan-region STOXX 50 futures was up by 0.2 percent.
Elsewhere in Asia, during late Asian trading hours, Mainland Shanghai alongside Bombay stock exchange were flatlined, while Hong Kong’s Hang Seng was up by 0.1 percent. Since most of the analysts had already cautioned the investors that a decipherable resolution of the eleven-month-long Sino-US trade spat would unlikely to emerge during the latest G20 summit, more and more investors had been leaning towards safer stocks and government bonds.
Referring to the long-anticipated Trump-Xi meeting, a chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities, Norihiro Fujiho said, ““Event-driven players are buying back stocks as the United States and China at least appear to be talking to each other,” while a senior strategist for Asia Pacific at Rabobank, Michael Every said, “The very best markets can hope for is a more patient delay and position building at the G20 that at least sees the U.S. and China refrain from any further escalation”.