Asian stocks took a plunge last Monday right after United States President Donald Trump lashed out at the “unfair” trade practices and also the condemned excessive debts of the chief if China’s Central bank.
The two warnings from the POTUS totally erased the positive leads the are from commodity and share markets. This is after Wall Street sets a new record last Friday and after a weaker yen.
True to the characteristic of being honest, Trump began his marathon Asia tour by criticizing the trade relationships with Beijing and Tokyo. He mentioned that Japan had been “winning” for decades and it was always at the expense of the United States. He also called out commerce with China “very unfair.”
Markets were already nervous even before Trump’s statement. There have been further missile and nuclear threats during the POTUS’ Asian Tour.
Trump is due to visit South Korea from Tuesday to Wednesday. While speaking in Japan, he also called out to the North’s missile threats. He called the North’s missile program “a threat to the civilized world and international peace and stability” and warned: “The era of strategic patience is over.”
After these statements, institutional investors had massive selling of their stocks resulting to Hong Kong recovering from the morning just to end the day flat. Seoul, on the other hand, lost 0.3 percent.
Furthermore, in response to Trump’s statement against China bank chief’s debts, their website posted an article saying that the tight government regulations on debts is unlikely to ease up.
Meanwhile, Shanghai recovered from the morning losses to close up 0.5 percent. Tokyo was broadly flat, with the already weak yen, and the added statement from Trump.
Japanese companies recently reported brisk corporate results. They encouraged investors by the gains on Wall Street.
All-time-high records has been closed by Wall Street this Friday. This is after technology shares when sky-bound because of the solid US jobs reports including strong Apple earnings.