Asian shares stumble, as trade optimism evaporates

by   |  VIEW 163
Asian shares stumble, as trade optimism evaporates

On Wednesday, the 3rd of July 2019, a majority of Asian stocks had failed to maintain the momentum gained earlier this week over optimism of a near-term trade deal between Beijing and Washington and witnessed a downswing over fresh concerns of Trump’s tariff threat on European products.

Aside from that trade concerns, global growth had also weighed on investors’ sentiment, as South Korea had been the latest to slash its yearly growth outlook on Wednesday (July 3rd), a day after reveal of moderating factory data across the world.

While this report was being prepared, during midday Asian trading hours, MSCI’s broadest index of Asia-Pacific shares outside Japan fell by 0.3 percent while Japan’s Nikkei had been nudged lower by 0.53 percent to 21,638.18, and Hong Kong was down by 0.28 percent to 28,795.67.

Meanwhile, Bombay stock exchange had been a little against the market backdrop and added 0.16 percent to 39,879.76 so far. However, following Wednesday’s (July 3rd) terrible opening of Asian shares, analysts had been quoted saying that the global stocks’ rally generated following US-China summit had been losing steams much earlier-than-expected, while questioning the viability of latest US-China trade agreement, a chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities, Norihiro Fujito said, “The easing of Huawei ban was a bit of surprise so there was a bit of short-covering. But there remain questions over how effective the agreement will be”.