Asian shares sink, Yen rises, offshore Yuan hurt as trade worries mount

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Asian shares sink, Yen rises, offshore Yuan hurt as trade worries mount

On Monday, the 26th of August, a basket of Asian shares had been drowning in a sea of death-crossed Nile, while the latest doldrums of Sino-US trade spat alongside Trump’s destructive trade policy spooked investors’ confidence and sent them to safe-haven assets such as gold, Japanese yen and government bonds.

On top of that, amid a flight-to-safety response on Monday’s (August 26th) market during Asia-Pacific trading hours, precious gold breached its highest level since April 2013, as BoE governor Carney urged global Central banks to seek for an alternative of American dollar as a foreign currency reserve at the first day of G7 meet in France.

Aside from an upsurge of gold prices, Japanese Yen hit its multi-month high on Monday (August 26th) morning to 104.44 yen per US dollar, while Australian dollar briefly fell into the $0.6600s breaking off almost all of its technical support level, while New Zealand dollar had been harbouring just a notch shy of $0.6300s.

Meanwhile, followed by Trump’s Saturday’s (August 24th) comment over the sidelines of recent G7 summit that he should have hiked China tariff further despite a 30 percent tariff already imposed on $550 billion worth of Chinese exports, Chinese Yuan devalued sharply on Monday (August 26th) morning Asian trading hours, while Chinese offshore Yuan was hovering near its multi-year high at 7.1710.

Concomitantly, MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.8 per cent during late-morning Asian trading hours, while ASX 200 was down by 1.7 percent on late-midday trading hours. Elsewhere in Asia, Japan’s Nikkei was nudged 2.3 percent lower during late-midday trading hours, while E-mini futures of S&P was slumped 1.0 percent.

Adding that this week’s turbulent kick-off would likely to persist amid no notable signs of concluding a US-China tariff warfare saga, analysts of ANZ wrote in a client note, “There is an uneasy feeling that the very fragile negotiations are spiralling out of control.

The escalation suggests uncertainty will continue to weigh on global trade, industrial production and investment, with no sign of a resolution. ”