For the last two days, investors digested the information connected with China and its economy. Recently, China decided to reduce import tariffs on a wide range of products. According to Chinese officials from 2020, it will lower import tariffs on more than 850 products. However, this news proved insufficient to boost the mainland Chinese stocks on Monday.
Strategist from the National Australia Bank, Rodrigo Catril attributed this decline to a combination of factors.
He mentioned that China must lower costs on products such as pork and, at the same time, should highlight its openness to the global economy.
Stocks markets and holiday season
Shares of Taiyo Yuden rose 2.52% in Japan. However, shares of another supplier which is LG Display declined by 2.19%. In Hong Kong, Sunny Optical dropped 0.36%. Another supplier which experienced is Taiwan’s Taiwan Semiconductor Manufacturing Company as its shares fell by 0.6%. All the companies mentioned-above are supplying various components to tech giant Apple.
On December 24, stocks were mixed in Asia ahead of the Christmas holiday. Mainland Chinese stocks strengthened their positions after experiencing problems on Monday.
The Shanghai Composite rose 0.67% to about 2,982.68. In the meantime, the Shenzhen component added 1.32% to 10,189.29. Moreover, the Shenzhen composite increased by 1.381% to approximately 1,690.74.
In Hong Kong, the Hang Seng index fell by 0.15% to close early at 27, 864.21. It is important to mention that markets in Hong Kong and Australia closed earlier on Tuesday ahead of the Christmas holiday. Australia’s S&P/ASX 200 index gained 0.13% to end the trading day at 6,794.20.
On December 24, the Nikkei 225 slightly increased to close at 23,830.58. Another major Japanese index Topix declined to end its trading day at 1,728.22. In South Korea, the Kospi fell by 0.62% to close at 2,190.08.