HONG KONG, H.K. – The Asian stock market started mostly optimistic on Monday, going higher through the afternoon as market players wait for further developments on the US-China trade deal.
The Hang Seng index of Hong Kong rose up to 1.11% as the shares of Tencent, a Chinese tech behemoth, rose to 2.06%.
Stock in Mainland China also recovered from the slip it had previously and is expected to go up by the afternoon. The Shenzhen composite is rising up to 0.708%, and the Shanghai composite is advanced up to 0.58%, while the Shenzhen component also gained up to 0.76%.
The recent gains in Asian stocks came despite the ongoing commotion in Hong Kong, as it continues to face civil unrest and protests that have been going on for months. As tensions escalate in the city, police have already warned on Monday that live bullets could be fired.
According to the Aberdeen Standard Investments’ managing director of the Asia Pacific Region, Hugh Young, on Monday, the market issues should be divorced from the political issues, at least, to some extent.
Young said that the stocks listed in Hong Kong represent more than the country itself.
On other parts of Aisa, the Nikkei 225 of Japan advanced up to 0.32%, with the Topix index gaining a bit higher. Shares of the former Yahoo Japan, now Z Holdings, advanced up to 1%, and Line shares rising about 2%. The gains came after the announcement of Softbank Corp about its plans to merge Naver’s Line to its subsidiary, Z Holdings.
The Kospi index of South Korea, on the other hand, dropped about 0.34% on the share price. Australian shares also dipped lower, with the 0.61% drop with the S&P/ASX 200.
Market players continuously watch for updates on the trade agreement between the US and China. So far, there wasn’t any fixed update about the trade talk from both countries, except for the report on Chinese media, Xinhua, that a phone call between Liu He, the Chinese Vice Premier, and Robert Lighthizer, happened on Saturday morning to talk about the trade deal’s phase one. According to reports, the two sides had a constructive
The news followed the comment from the economic advisor in the White House, Larry Kudlow, last week saying that the US and China are getting close to finalizing phase one of the trade deal.
From the strategists at Commonwealth Bank of Australia’s point of view, based on the note they released, the US-China trade agreement will continue to stay in front of the market’s mind this week. There is a risk that the latest tariff optimisms might be receding, the note said, also noting that the US is scheduled to list 15% tariffs on December 15 for Chinese imports.