Asian Markets Look for Guidance

Asian markets struggled to turn higher on Friday. Asian and Pacific Rim traders are looking for more guidance with the trade war between China and the United States.

Traders are also digesting that UK Prime Minister Boris Johnson has called for snap general election in December.

Overnight, U.S. Vice President Mike Pence delivered rather hawkish comments on China. He said that China’s military is continuing to make provocative moves in the region and said that the United States stands with the protestors in Hong Kong.

VP Pence also said that China has done very little to stem the flow of opioids into the United States and still engages in commercial intellectual theft against U.S. companies.

VP Pence also said, however, that the U.S. is confident that a trade deal can be reached and that the U.S. does not want to “de-couple” from China.

In Japan, the Nikkei 225 reversed early gains to trade down by a fraction of a percent by noon. The Topix index, in Tokyo, was trading flat.

In South Korea the Kospi composite index was down 0.1 percent and elsewhere in the Asian and Pacific Rim, the Australian ASX 200 was up 0.54 percent. Most subsectors on the ASX were in the green.

In Hong Kong, the Hang Seng index was down 0.45 percent.

On the mainland in China, the Shanghai composite was down about half a percent and the Shenzhen component fell 0.13 percent.

Asian Traders Digest Calls for a Snap Election in the United Kingdom

As of yesterday, Prime Minister Boris Johnson asked the UK parliament to approve a national election. This would be scheduled for December 12. He wants to break the deadlock around Brexit.

Polls show that his Conservative Party is leading in the polls. He wrote a letter to main opposition leader, Labor Party head Jeremy Corbyn. Johnson said that he will give parliament more time to approve his Brexit deal but lawmakers must agree to his call for elections.