Two days ago, the 30-stock Dow Jones Industrial Average gained about 350 points in regular trading. Importantly, it was the seventh positive session in a row. Furthermore, it was the longest winning streak since September 2019. Also, the S&P 500 advanced by 0.2%. However, Nasdaq dropped 0.4% as investors rotated out of some of the high-flyers. Interestingly, on August 11 stocks in Asia strengthened their positions thanks to U.S. stocks.
There are other factors as well. For example, tensions between the U.S. and China continue to affect the stocks.
On Monday, China imposed sanctions on 11 U.S. citizens, including legislators. The list of people targeted is quite impressive. Senators Ted Cruz, Marco Rubio, Tom Cotton and others.
As a reminder, Washington made the decision to impose sanctions on 11 individuals including Hong Kong leader Carrie Lam.
Unfortunately, tensions between the U.S. and China started a long time ago, but coronavirus pandemic and situation in Hong Kong reignited tensions between the largest economies in the world.
Stocks in Asia
As stated above, stocks in the Asia Pacific mostly strengthened their positions on Tuesday. Let’s have a look at the stocks across the Asia Pacific.
In Japan, the Nikkei 225 added 1,88% to 22,750.24. In the meantime, the Topix index gained 2.54% to end its trading day at 1,585.96. The Japanese market was closed on Monday for a holiday.
Also, South Korea’s Kospi index advanced 1.35% to 2,413.67.
Moreover, Australia’s benchmark ASX 200 gained 0.47% to 6,138.70 where the heavily weighted financials subindex added 1.14%.
However, mainland Chinese markets saw losses on the day. The Shanghai Composite dropped 1.15% to 3,340.29. At the same time, the Shenzhen Component fell 1.4% to end its trading day at 13,466.27. Moreover, the Shenzhen Composite dropped 1.49% to 2,243.45.
Furthermore, Hong Kong’s Hang Seng index also increased on Tuesday.