It was a turbulent day for the stocks in the Asia Pacific. White House trade advisor Peter Navarro clarified his position. According to Navarro, the U.S.-China trade deal is not over. His comment helped to boost stocks.
Let’s have a look at stocks. Interestingly, Hong Kong’s Hang Seng index leg gains among the region’s major market. On Tuesday, the Hang Seng index added 1.62% to close at 24,907.35. Shares of Chinese tech giant Tencent reached a new record. Shares of Tencent reached as high as 498.60 Hong Kong dollars per share before finishing the trading day 4.89% higher. Mainland Chinese stocks also strengthened their positions on June 23.
The Shanghai Composite added 0.18% to around 2,970.62. At the same time, the Shenzhen Component gained 0.782% to about 11,794.01.
Moreover, in Japan, the Nikkei 225 advanced 0.5% to close at 22,549.05. In the meantime, the Topix index gained 0.51% to finish its trading day at 1,587.14.
South Korea’s Kospi index added 0.21% to close at 2,131.24.
Australia’s S&P/ASX 200 gained 0.17% to 5,954.40.
U.S.-China trade deal and stocks
Hopefully, White House trade advisor Peter Navarro clarified his previous comments. According to Navarro, his comments were taken out of context.
Importantly, U.S. President Donald Trump used his Twitter account to comment on this topic. Trump said that the China trade deal is fully intact. This is a very important comment, as the trade war between the U.S. and China created a lot of problems for the global economy.
The partial trade deal that dates back to January is not enough to solve all the problems. However, even a partial trade deal is a huge achievement for both sides. The coronavirus pandemic had a huge impact on the global economy.
There is no need to create additional problems. Governments of both countries should understand the severity of the coronavirus crisis. Moreover, they should try not to provoke each other for at least another couple of months.
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