Asia Market Started Bright Amid US-China Trade Fatigue

BEIJING, China – The Asian market is off to a bright start in today’s session as no news or another rumor about the US-China trade talks.

The data from China and Japan yesterday brought a dose of reality into a global recovery. The economy all over the world has significantly dropped, and although the market is heavily affected by the confusion around trade talks, the temporary trade deal wouldn’t make for a total recovery for the global economy on its own.

Overnight, the US market continued a streak going from recent highs to lower levels early in the week. The fact that both the US and China cannot agree on issues such as lowering some of the tariffs didn’t bode well for the market.

With the conflicting sentiments of the market this week, it was a sign that the patience and growth momentum has been waning as confusion ensues with the on-going trade deal.

On the other hand, the calendar for the Asian market has been quiet with both the Indonesia Balance of Trade and the NZ Business PMI outperforming today’s trading session, providing much needed optimistic news.

Malaysia already released its GDP growth for the 3^rd quarter at 12:00 SGT, which is set to increase by up to 4.90% YoY. Japan has also released its Final Industrial Production for the month of September about 12:30 SGT, with an expected 1.10% increased YoY.

Further, the Hong Kong government also released a statement denying claims that they are planning to enforce a curfew around their territory by the weekend. The entirety of Asia showed positive sentiment after the comment from Hong Kong after their talk with Beijing about security situations yesterday.

By recent standards, the protests that have been going on for months has also died down a bit, one factor that might have helped the Asian markets this morning. Although the situation can change rapidly anytime, this factor can also affect the market drastically.

In the equities front, Asia underperforming the US all week is also off to a bright start during today’s session. The Kospi and Nikkei inched moderately higher at 1.0%. The ASX 200 also gained up to 0.70%, Straight Times Index increasing to 0.25%, and the Hang Seng gained a considerable 0.40% increase.

With the optimistic sentiments for most Asian markets today, only mainland China is slower on the uptake. The CSI 300 and Shanghai Comp is down by 0.40% and might still be a hangover from the disappointment in China’s industrial production and retail sales from yesterday.