Asian stocks hit one-year low on Turkey, China worries

  • Asian stocks hit one-year low on Turkey, China worries
    Independent.t. E.
    Asian shares hit a new yearly low on Thursday amid concerns about slowing economic growth in China and a currency crisis in Turkey, although news about the resumption of trade talks between Washington and Beijing helped the markets trim some of those losses.
    https://www.independent.ie/business/world/asian-shares-hit-oneyear-low-on-turkey-china-worries-37221577.html
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Asian shares hit a new yearly low on Thursday amid concerns about slowing economic growth in China and a currency crisis in Turkey, although news about the resumption of trade talks between Washington and Beijing helped the markets trim some of those losses.

The broad MSCI index of Asia-Pacific shares outside Japan fell 0.3 PC, after shedding as much as 1.1 PC hit its lowest since August 11, 2017.

In the morning the better tone in European equities, predicting growth in the British FTSE, German DAX and French CAC.

On Thursday, China said a delegation headed by Deputy Minister of Commerce will go to the USA for talks at the end of August at the invitation of Washington.

  • Read more: Turkey doubled the tariffs on American cars, alcohol and tobacco

We helped Chinese stocks trimmed losses as the Shanghai Composite Index and Hong Kong Hang Seng index of Hong Kong friend of 0.8 PC. Earlier in the day, Shanghai fell as much as 1.9 PC, while Hong Kong was 1.7 PC.

Japan’s Nikkei average rose 0.1 PC lower in early trading, with the benchmark falling as much as 1.5 PC on this swing into positive territory on news of China.

The Euro rose 0.3 PC and the offshore Chinese yuan rose by 0.8 PC, after the Chinese-American trade to tell the news. Stock futures US rose 0.4 PC.

The statement of the Ministry of Commerce of China of the planned meeting at the end of August comes after a lull in negotiations between the two sides. The last formal round of negotiations was in early June, when the U.S. Secretary of Commerce Wilbur Ross met with Chinese Vice-Premier Liu he in Beijing.

Despite the modest respite, the markets remain vulnerable, as signs of a slowdown in the Chinese economy and the instability of the Turkish currency keep investors on guard.

“The news (about the Chinese-American trade negotiations) caused short covering, but I think that fundamentally it is of limited value,” said Yasuo Sakuma, investment Director at Libra investments.

Said Sakuma fluctuations in the Turkish market reflect the fact that it is one of the most vulnerable parts of the global economy at this stage in the cycle of interest rates as the fed seeks to normalize monetary policy.

However, he noted that perhaps more risks for investors, such as weak earnings from tencent company.

Chinese tech giant reported its first quarterly profit fall in nearly 13 years on weak gaming revenue.

That knocked other Asian IT companies from South Korea’s Samsung electronics, the third largest firm in Asia by market capitalization, falling to an annual minimum.

Major indexes on wall Street closed lower on Wednesday, with the S&P 500 fell 0.8 PC, its biggest percentage decline since late June, amid disappointing earnings and growth of world trade concerns.

“Negative news come from Turkey and China every day upsets global markets,” said Norihiro Fujito, chief investment strategist at Mitsubishi ufj securities and Morgan Stanley.

“In addition, the earnings impact in tencent hurt the technology sector shares, sending the Nasdaq below. It reminded investors that U.S.-China trade spat begin to harm the health and even the technology firms that were the main driver of the rally us to share”.

Oil prices took an additional hit after data showed an unexpected weekly increase in crude inventories in the United States, adding to concerns about weak global economic growth, before recovering to trade news.

US crude oil was at $65.12 per barrel, after falling to two-month low of $64.42 per barrel at the end of trading on Wednesday, the 3.2 PC fall.

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