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Asian Markets Mixed Ahead of Trump-Juncker Trade Talks

Published 07/25/2018, 01:16 AM
© Reuters.  Asian stocks remain mixed in afternoon trade
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Investing.com – Asian stocks remain mixed in afternoon trade on Wednesday. U.S. President Donald Trump and European Commission President Jean-Claude Juncker are due to meet in Washington for trade-focused talks later in the day.

The Shanghai Composite and the SZSE Component both climbed 0.3% while the Hang Seng Index also gained 0.7% by 1:20AM ET (5:20 GMT).  

The Chinese Yuan remained in focus as it dropped further on Wednesday after reaching a 13-month low on in the previous session. The International Monetary Fund (IMF) said on Tuesday that there is no evidence the Chinese authorities intervened the exchange rate of the Chinese currency. 

Mury Obstfeld, the chief economist of IMF, said, “They [the Chinese government] haven’t been intervening in their foreign exchange market as far as we can see.” 

He said other factors in the Chinese economy are piling pressure on the yuan, including lower growth, lower interest rates and the trade tensions with the U.S.  

IMF’s comment came after the U.S. President Donald Trump accused China and the European Union of manipulating their currencies last Friday in a tweet. China responded on Monday that the government does not intend to devalue the currency to boost exports amid the US-China trade war. 

Meanwhile, Fosun International made headlines after reports suggested the company is considering to purchase Beigian insurer Ageas. Fosun is talking to advisers about other options including teaming up with a partner to split the Belgian company or increasing its current stake, according to people familiar with the matter. Ageas has a market value of 8.9 billion euros ($10.4 billion).  

Elsewhere, South Korea’s KOSPI edged down 0.3%. LG Display (KS:034220) reported on Wednesday that operating loss in Q2 amounted to 228 billion won ($202.1 million), compared with an average forecast of a 247 billion won loss. 

Japan’s Nikkei traded 0.4% higher in afternoon trade. The yen depreciated at 111.29 per dollar following the BOJ’s regular operation that did not suggest it may be about to signal a change in policy. 

Down under, Australia’s S&P/ASX 200 slipped 0.3%. The country’s inflation remained subdued in the second quarter of 2018, suggesting the central bank is likely to hold interest rate for a third year, data from the Australian Bureau of Statistics showed on Wednesday. 

Looking ahead, investors are also awaiting the second-quarter U.S. economic growth data which is due on Friday, where they expect growth to top current forecasts of 4.1%. 

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