Recently, the Bank of Korea released advanced estimates regarding the country’s gross domestic product (GDP). Interestingly, stocks were mixed on July 23.
Based on this data, growth declined by 3.3% in the second quarter of 2020. Consequently, compared to the first quarter, this number increased from 2.9% to 3.3%.
Importantly, exports fell by 16.6% due to declines in motor vehicles, coal, and petroleum products. The coronavirus pandemic is a serious problem for Asia’s fourth-largest economy, as it created a lot of problems for countries around the world.
Unfortunately, the pandemic is far from being over, as coronavirus cases continue to rise, and the number of cases surpassed 15 million. Moreover, due to the ongoing situation, it would take time to get the global economy back on track.
Stocks in Asia and tensions
As mentioned above, stocks in the Asia Pacific were mixed on Thursday. For example, South Korea’s Kospi index fell by 0.56% to 2,216.19 as shares of firms such as Samsung, LG, Hyundai Steel, and SK Hynix sold off.
Nevertheless, Hyundai Motor shares gained 5.06% while those of Kia Motors grew by 2.51%. Moreover, the Kosdaq index advanced by 0.84% to 801.69.
Australia’s benchmark ASX 200 gained 0.32% to 6,094.50. It is worth noting that the financial subindex gained 0.18% while the energy sector advanced by 1.24%.
Nevertheless, mainland Chinese stocks saw losses on the day. For instance, the Shanghai Composite fell by 0.24% to 3,325.11. In the meantime, the Shenzhen Composite closed near a flat trend.
Importantly, Tensions between the U.S. and China escalated after the U.S. State Department made the decision to close the consulate in Houston, which belongs to China. Moreover, the People’s Republic of China warned of firm countermeasures if the U.S. did not reverse this decision.
On Friday, China’s Foreign Ministry made an important announcement. China made the decision to close the U.S. consulate general in the Chinese city of Chengdu.
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