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Asian Markets Gain Following Recovery in U.S. Stocks

Published 08/07/2019, 10:23 PM
Updated 08/07/2019, 10:25 PM
© Reuters.
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Investing.com - Asian markets rose in morning trade on Thursday following a recovery in U.S. equities overnight.

China’s Shanghai Composite and the Shenzhen Component were up 0.7% and 0.6% respectively by 10:08 PM ET (02:08 GMT).

The People’s Bank of China fixed its daily onshore currency rate at weaker than 7 for the first time since 2008. Some analysts said the move could be interpreted as a sign that Beijing is looking to stem a recent slide.

On Monday, the Chinese currency breached an important 7-yuan-per-dollar level and prompted the U.S. Treasury Department to label Beijing as a currency manipulator.

On the data front, China is expected to release exports, imports and trade balance numbers later in the morning.

Hong Kong’s Hang Seng Index also gained 0.7%.

Shares of Cathay Pacific Airways Limited (HK:0293) was down 1% after the carrier said ticket sales fell as fewer people took Cathay flights into Hong Kong in July amid mass demonstrations against a controversial extradition bill and government policies.

Japan’s Nikkei 225 climbed 0.5%, while South Korea’s KOSPI rose 0.9%.

Down under, Australia’s ASX 200 inched up 0.2%.

Overnight, U.S. stocks recovered after plunging right after Wednesday’s open.

The Dow Jones industrials were off nearly 600 points by 9:45 AM ET (13:45 GMT) but recovered to finish down just 0.1% or 22 points. The S&P 500 was down as much as 0.2%, or 56 points, but came back to finish with a gain of 0.1%. The Nasdaq Composite ended up 0.4% after falling as much as 1.3%.

President Donald Trump said in a tweet that “They (the Fed) must Cut Rates bigger and faster, and stop their ridiculous quantitative tightening NOW.”

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