ASIA – Shares in Asia edged down as the trading day closed, with Japan’s Nikkei losing more. The London stock market is also expected to open lower as investors take a step back and wait for further developments in the US-China trade deal. In contrast, Wall Street continues to break records.
The Nikkei 225 dropped by 0.55% to reach 23,935.44 at the close of Wednesday’s trading. Hitachi Ltd., Nippon Electric Glass Co. and Taiheiyo Cement were all big winners today. However, the market was pulled down by the poor performance of the real estate, paper, and transportation sectors.
Daiichi Sankyo Co., Ltd dropped 5.58% or 414.0 points and ended at 7,004. Kawasaki Kisen Kaisha, Ltd also slipped by 3.43% or 66.0 points as the IHI Corp dropped 3.53% or 92 points. It closed the day trading at 2,517.
The Shanghai Composite Index slipped 0.3% to 27,802.23 while the Hang Seng also went down by 0.2% to 27,802.23. Philippines shares were also down.
The KOSPI basically showed no movement but ended the day at 2,195.29. Meanwhile, the S&P/ASX 200 of Australia gained almost 0.1% to 6,851.40. Shares in India, Indonesia, and Thailand were also higher.
The slow trading day in Asia is reflected in London’s sluggish opening. According to the Danske Bank, the equity markets are “taking a pause” after shooting up last week as a partial trade deal between the US and China was announced.
Now reality has set in again and investors are waiting for concrete proof that the two countries are really going to finalize their deal. Danske Bank noted that while US trade representatives recently claimed that the initial deal was enforceable, there’s no new information regarding negotiations.
Investors are said to be cautiously optimistic about the trade deal being finalized by January.
While the optimism about the trade deal appears to be missing in Asia, it’s still felt in Wall Street as America’s major indices continued to break records. Nasdaq and the S&P 500 has closed at record highs for four consecutive days, with the Dow Jones not far behind.
The S&P 500 enjoyed its fifth consecutive gain and went up by 0.1% to 3,192.52. The index is already higher by 27.4% and there’s still three weeks left in the year. The Nasdaq is up by 0.1% or 9.13 points and trading at 8,823.36. The Dow Jones is also up by 0.1% or 31.27 points to 28,267.16.
One investment specialist from J.P Morgan posited that a lot of Wall Street’s momentum is from the Phase One deal and the possible resolution to Brexit.