Stocks in Asia, Investor Sentiment, and Tensions

It was a day full of challenges for the stocks in the Asia Pacific. Importantly, stocks were mixed on Thursday, as investors are closely monitoring the situation connected with tensions between the U.S. and China. 

Tensions between the two largest economies in the world started before the coronavirus pandemic. This year countries reached a partial trade agreement. Nevertheless, relations between the countries are far from being ideal.

Let’s have a look at the stocks in the Asia Pacific. For example, South Korea’s Kospi index added 1.33% to close at 2,341.61 as shares of automaker Hyundai Motor jumped 7.84%.

Moreover, mainland Chinese stocks were mixed on the day. The Shanghai Composite added 0.26%  to about 3,386.46. At the same time, the Shenzhen Component fell 0.7% to around 13,863.13. 

It is worth noting that, Hong Kong’s Hang Seng index fell 0.69% to end its trading day at 24,930.58.

Japanese stocks saw losses on the day. The Nikkei 225 fell 0.43% to close at 22,418.15. In the meantime, the Topix index dropped 0.31% to end its trading day at 1,549.88.

Interestingly, Australia’s S&P/ASX 200 fell 0.68% to close at 6,042.20.

Stocks and various factors

There are numerous factors that could affect stocks. Tensions between the U.S. and China have the potential to influence the markets around the world. On August 5, U.S. Secretary of State Mike Pompeo said that Trump’s administration wants to ban untrusted Chinese apps such as TikTok and WeChat from U.S. app stores. Importantly, tensions between the U.S. and China escalated in recent weeks. 

There are other issues as well, not related to tensions. Notably, the range of issues remains unresolved among lawmakers in the U.S connected with the coronavirus relief negotiations. 

To sum up, tensions between the largest economies in the world represent a serious issue. Both sides should work together to find the best solution as soon as possible.