Forex Marketz Daily Forex News – Fully Markets Update
Asian equity markets were broadly lower, including the benchmarks in China. This comes amid mounting tensions between China and the United States after a report in the Wall Street Journal indicated that trade talks are at an impasses over Huawei.
The Asian benchmark, in Japan, the Nikkei 225, was down 1.85 percent. The broader Topix index, in Tokyo, shed nearly two percent by the afternoon.
Data, out of Japan, showed that exports fell 6.7 percent in June. Asian and regional traders had expected a contraction of 5.7 percent.
In South Korea, the Kospi composite index fell 0.41 percent as shares of Celltrion shed almost two percent. The Bank of Korea, today, said that they would cut their headline lending rate by 25 basis points to 1.5 percent. Earlier in the month the South Korean central bank cut their forecast models.
In Australia, the S&P ASX 200 was down 0.31 percent and shares in Hong Kong on the Hang Seng index fell about half a percent.
In China, the Shanghai composite was down 0.65 percent and the smaller Shenzhen composite fell 1.22 percent. The Shenzhen component was down 1.2 percent by the afternoon.
Asian Traders continue to worry about Trade Headlines
The equity benchmarks in the United States fell lower overnight after a newspaper report indicated that trade talks between the United States and China were stalling over U.S. sanctions against Huawei.
Earlier in the week, on Tuesday, President Donald Trump said that there is long way to go before a trade deal with China. He also threatened another round of tariffs totaling $325 billion on goods from China.
