- Shares in the Asia Pacific are trading mixed.
- The US stock recovered most of their losses on Mondy despite the renewed trade tensions.
Asian stocks are trading mixed this Tuesday morning amid hopes that the US and China could still strike a trade deal.
As of writing, China’s Shanghai Composite is 0.87%, having dropped more than 5% on re-escalation of trade tensions by the US President Donald Trump. Hong Kong’s Hang Seng is also flashing a 0.70% gain.
Meanwhile, Japan’s Nikkei, which returned to the first day of trade following a 10-day holiday period, is down 0.90%. Shares in South Korea are also feeling the pull of gravity.
Asian equities were a sea of red twenty four hours ago on renewed US-China trade war fears. Early Sunday, President Trump tweeted that he would raise tariffs on $200 billion worth of Chinese goods to 25% from the current 10%.
The US stocks also took a beating initially with Dow futures falling 500 points. The index, however, trimmed losses to end the day with 66 point loss. The recovery in the US stocks seems to have calmed nerves in Asia.
Australian shares rise 0.90%
Shares in Australia are better bid ahead of the Reserve Bank of Australia’s (RBA) rate decision. The central bank has recently come under pressure to cut rates to a new record low of 1.25% ahead of the election after the disappointing first-quarter inflation data signaled the economy is weakening.
Most investment banks, however, see RBA maintaining the status quo today. The markets now see a 48% probability of a 25 basis point rate cut, down from 60% a few days ago.
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