Asian equities fell on Wednesday after a brutal session on Wall Street, but optimism regarding the trade front, according to comments by the Chinese government, helped contain the losses.
On Tuesday, the Dow Jones Industrial Average
dropped nearly 800 points. The yield on the ten-year benchmark of the US benchmark fell to its lowest level in three months, signaling that the bond market is worried about long-term economic growth. The sell-off resulted in a recent rally on Wall Street.
The market gained on Monday after the Trump administration announced that the US and China had agreed to a temporary ceasefire in a trade dispute. However, there was confusion about what was agreed. Stocks jumped last week as the Federal Reserve chairman said the central bank could slow down the pace of interest rate hikes.
A new comment from the trade front from China seemed to limit the sale. A spokesperson for the Chinese Ministry of Commerce issued a statement Wednesday that he said he would "implement immediately" the measures agreed with the US, recognizing the 90-day trade talks timetable that US President Donald Trump pointed out on Tuesday.
Hong Kong's Hang Seng Index
closed 1.6%, with tech stocks under pressure – Tencent
2.3% less and smartphone component companies AAC
and Sunny Optical
by 3.7% and 7.3%, respectively. Banks also fell with HSBC
down 2% and the China Construction Bank
by 2.7%. In the Chinese mainland the Shanghai Composite
ended up 0.6%, while the Shenzhen Composite with a smaller company size
ended with an increase of 0.2%.
closed 0.5% lower, with financials hit poorly – insurer Dai-Ichi Life
each fell by 3%. Robotics manufacturer Fanuc
fell more than 3%.
South Korea's Kospi
sank by 0.7% with Samsung
decreased by 1.7%. Benchmarks in Taiwan
fell 1.7% and 0.5%, respectively.
The Australian S & P ASX 200
fell 0.8% after GDP data for the third quarter fell short of expectations. Bank shares had another hit with Westpac
and ANZ Banking Group
all dropped more than 1%. New Zealand's benchmark
closed almost 1% lower.
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