Stocks in the Asia Pacific and Risk Factors

Stocks in the Asia Pacific fell on Thursday. However, on the next day stocks mostly saw gains despite U.S.-China tensions. Let’s have a look at the stocks.

As stated above,  stocks in Asia including Chinese stocks fell on July 16. However, mainland Chinese stocks saw gains on Friday. For example, the Shanghai Composite gained 0.13% to about 3,214.13. At the same time, the Shenzhen Component added 0.913% to around 13,114.94.

Moreover, Hong Kong’s Hang Seng index advanced 0.69% as of its final hour of trading.

South Korea’s Kospi index gained 0.8% to close at 2,201.19.

However, stocks in Japan were not so lucky. The Nikkei 225 fell 0.32% to close at 22,696.42. In the meantime, the Topix index dropped 0.33% to end its trading day at 1,573.85.

Australia’s S&P/ASX 200 added 0.38% to close at 6,033.60.

Stocks, and economic superpowers

On Thursday, mainland Chinese stocks suffered heavy losses. Another important news from that day is the U.S. jobless claims data. Importantly, jobless claims data missed expectations.

According to the Labor Department, the initial jobless claims figure reached 1.3 million for the week that ended on July 11. Economists expected jobless claims data to reach 1.25 million.

Tensions between the two economic superpowers represent a serious problem for the global economy. It is not surprising that tensions between the U.S. and China have the potential to affect investor sentiment.

According to a source familiar with this topic, the U.S. President Donald Trump administration is considering banning travel to the U.S. not only to all members of the Chinese Communist Party but their families as well.

Tensions between the U.S. and China started a long time ago. However, the coronavirus pandemic created additional pressure on both sides. Nevertheless, China, as well as the U.S., should work together to deescalate the situation. The stare of the global economy was from being ideal even before the pandemic. The world’s largest economies should try not to create new problems.