In the Asia Pacific trading session, Tuesday, 4th December, the Asian Shares started to dip, as the trade truce relief rally stops gaining further momentum and concerns are raising whether the US and China will be able to wipe out their trade differences.
An inverted US yield curve has also escalated concerns about a possible recession. MSCI’s Broadcast Index of Asia-Pacific stocks outside Japan plunged by 0.3%, while the Chinese equity kept struggling to move out of the negative territory.
Hong Kong market was dwindling, losing over 0.4% and Chinese Blue-chip shares in Shenzhen, alongside Shanghai remained slightly weaker, while the Benchmark Shanghai Composite Index have been struggling to stay out of the red zone.
ASX200 gave up 0.8%, while Australian shares started to show immediate response, as Chinese market is still the largest exporters for the Aussies. Seoul’s Kospi dipped by 0.6%, while Japan’s Nikkei 225 was drowned 1.3%.
The broader scale loss in the Asian shares, has been signaling that, the trade truce relief rally has lost its momentum and the Wall Street Tuesday move is yet to come. Overnight, the Dow Jones Industrial Average closed 1.13% higher, the Nasdaq composite gained 1.51% and the S&P 500 added 1.09%.
As shares started to dwindle slowly, National Australia Bank Analysts questioned in a note to the clients, “Overall trade news overnight (has) probably left the market with more questions than answers, can the US and China really resolve their differences in 90 days?”