Asian Stocks Mixed After a Quiet Trading Ahead the Holidays

TOKYO, Japan – Shares in the Asian stock market were mixed on Monday after quiet trading before the Christmas holidays.

The optimism has increased following the progress in the negotiations to end the trade war between the US and China after Beijing announced its plans to allow more private businesses to its financial markets. However, the most positive sentiment in the market has died down over concerns of a possible missile test from North Korea.

On Monday, the Nikkei index of Japan increased by 0.1% to settle at 23,839.92, with Hong Kong’s Hang Seng index also adding 0.1% towards 27,891.56.

Elsewhere in Asia, stocks mostly slipped during the day. The Shanghai Composite index declined by as much as 0.5%, going down to 2,991.70, while the S&P ASX 200 of Australia tracked a 0.3% drop in shares to settle at 6,793.20. The Kospi index in South Korea is also down for the day by 0.1% towards 2,201.56.

Stocks in Taiwan have also increased marginally, but shares in Singapore, Thailand, and Indonesia all retreated.

According to a commentary by Jeffrey Halley from Oanda, without any major headline at the moment, the Asian stock market is expected to continue a quiet trade ahead of the holiday break.

During the weekend, North Korean leader Kin Jong-un has started a key meeting that aims to decide on the ways to boost the military capability of the country. The key ruling party meeting was held amid the increasing rumors that North Korea might be on the way to abandon its diplomacy with Washington and is planning to launch a missile if the US wouldn’t agree to its demands.

Meanwhile, South Korea, China, and Japan leaders are meeting in China this week for a trilateral summit despite the ongoing feuds over historical animosities, military maneuverings, and trade.

The North Korean nuclear concerns and economic cooperation will be the two key issues that bind the Northeast Asian trio. However, there are no major breakthroughs expected during the meetings, although the meeting is more of an opportunity for face-to-face discussions.

Elsewhere, most of the market is heading towards a good end for the year. The momentum of the global stock market has been upwards following the increasing trade optimism that phase one of the agreement between the US and China to end the long-standing trade war is coming soon.

Fears of the market that a recession might be in the near term has also faded after the previous rate cuts and the recent decision of the central bank to keep the low rates unchanged.