Last week, the U.S. and China reached a long-awaited agreement regarding the “Phase one” trade deal. This news as well the information connected with China’s industrial output and retail sales, helped to boost Chinese stocks.
On Sunday, U.S. Trade Representative Robert Lighthizer commented on the U.S.-China trade deal. According to Lighthizer, as a result of this deal, the U.S. will double its exports to China over the next two years.
Based on the preliminary information, the U.S. and China would sign the partial trade deal at the beginning of January.
Stocks on December 16
As mentioned, above mainland Chinese stocks increased thanks to the country’s industrial output and retail sales. Both surpassed market expectations.
The Shanghai Composite gained 0.56% to 2,984.39 at the close on Monday afternoon. At the same time, the Shenzhen component rose by 1.54% to 10,158.24. The Shenzhen composite rose 1.56% to 1,686.41. Shenzhen’s Nasdaq style start-up board ChiNext jumped almost 2% to 2,090.14.
In Hong Kong, the Hang Seng index fell by 0.34% during the last hour of trading.
Let’s get back to the country’s industrial output, which increased by 6.2% year-on-year in November. Based on the data provided by China’s National Bureau of Statistics. Analysts expected that industrial production would increase by 5%.
In November, retail sales rose 8.0% year-on-year.
Nevertheless, markets in other Asian countries had a mixed reaction regarding the “Phase one” trade deal.
In Japan, the Nikkei 225 declined by 0.29% to 23,952.35. Topix index fell by 0.18% to 1,736.87. In South Korea, the Kospi index also failed to reach a positive result as it fell by 0.10% to 2,168.15.
Australia’s S&P/ASX 200 achieved the best result in the region. The index gained 1.63% to 6,849.70. Major miners and banks helped to increase the S&P/ASX 200 index.
COMMENTS