Last week on Friday, shares in several Asian countries declined due to the uncertainty connected to trade talks. This news affected the stock markets.
Gao Feng is a spokesperson for China’s Commerce Ministry. On Thursday, he said that China and U.S. agreed to scrap the tariffs as part of the “phase one” deal.
U.S. official also confirmed this information. However, he spoke on the condition of anonymity.
Gao said that both sides were closer to sign the “phase one” deal.
It is important to mention that U.S. President Donald Trump and China’s President Xi Jinping may not sign this deal until December.
Stocks on November 8
On Friday, the Shanghai Composite declined by 0.49% to 2,964.18. Meanwhile, the Shenzhen component fell by 0.22% to 9,895.34. The Shenzhen composite fell by 0.187% and was close to 1,648.68.
The shares of Chinese tech giant Tencent declined by 2.04%.
In Hong Kong, the Hang Seng index decreased by 0.84% during the final hour of trading.
South Korea’s Kospi index declined by 0.33% and was close to 2,137.23.
Two major stock indexes in Japan strengthened their positions on November 8. The Nikkei 225 index added 0.25% and is close to 23,391.87. Another Japanese index Topix gained 0.27% and finished the trading day at 1,702.77.
In Australia, the S&P/ASX 200 finished its trading day just below then flatline at 6,724.10.
Across the ocean situation was different. The Dow Jones Industrial Average increased by 182.24 points to 27,674.80. The S&P 500 added 0.3% to 3,085.18. The Nasdaq Composite increased by 0.3% to 8,434.52.
The problems regarding the trade war continue to affect the stock markets around the world. The “phase one” deal won’t solve all of the issues connected, but this agreement will alleviate the risks for investors. The trade war between the two largest economies in the world is a huge challenge for stocks. Both sides should work harder to end this dispute as soon as possible.