- Asian stocks are a sea of red amid President Trump’s impeachment inquiry.
- Reports of China planning to boost purchases of US farm products have failed to boost equities.
Asian stocks are flashing red, as President Trump’s impeachment inquiry threatens to push the world’s largest economy in a prolonged period of political uncertainty.
As of writing, Japan’s Nikkei index is reporting a 0.35% drop. The Japanese Yen has depreciated by more than 30 pips in Asia, but that has failed to boost the stock markets.
Meanwhile, the Australian stocks are down 0.34% at press time and the Hong Kong’s Hang Seng index is shedding 0.90%. The Shanghai Composite index is currently down 0.57% on the day.
“The impeachment probe has put a dent in Asian shares,” said Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ Kokusai Asset Management Co in Tokyo, according to Reuters.
The US House of Representatives will launch an impeachment inquiry over whether Trump sought help from Ukraine to smear former Vice President Joe Biden – now a front-runner for the 2020 Democratic presidential nomination.
The Chinese stocks are also feeling the pull of gravity, possibly due to President Trump’s harsh criticism of China’s trade practices in a speech at the United Nations.
Reports hit the wires in Asia that China is planning to boost purchases of US farm products as a goodwill gesture ahead of the next month’s high-level trade talks. So far, however, the news has failed to put a bid under the Asian equities, although the futures
on the S&P 500 have responded positively by eking out 0.20% gains.
Looking forward, the global equities could remain under pressure on fears that Trump may harden his stance on trade if he feels the impeachment inquiry is ending his re-election chances in 2020.
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