Asian Markets Rise after the US Delays some Tariffs

Asian and Pacific Rim benchmark equity bourses were trading broadly higher on Wednesday. This change in Asian and regional sentiment comes after the United States said that they would delay implementing tariffs in Chinese goods until December.

The Asian benchmark in Japan, the Nikkei 225 was up 0.92 percent by the afternoon. The Broader Topix index, in Tokyo, added 0.8 percent.

The mainland Chinese markets were also higher. The Shanghai composite rose 0.78 percent and the smaller Shenzhen composite added 1.2 percent. The Shenzhen component added 1.24 percent.

Yesterday, the United States Trade Representative announced that certain products from China including clothing and cellphones are being removed from the tariff list based on “health, safety, national security and other factors.” They will not be taxed an additional ten percent and other tariffs will be delayed form September 1 till December 15.

Tensions in Hong Kong remain elevated. Shares of the Hang Seng index added 0.54 percent. Yesterday, for the second day in a row, the international airport in the City was shuttered thanks to protests.

Asian Traders Digest Positive Trade War Headlines between the U.S. and China

Yesterday, U.S. President Donald Trump decided to delay his September 1 deadline for ten percent tariffs on Chinese imports until December. The United States will delay new tariffs on: cellphones, laptops and other consumer goods as the U.S. hopes to support consumer spending into the holiday season.

This delay was a boost to consumer sentiment which supported risk assets like equities. Asian markets were also supported by the news today.

Global unrest has been sapping regional sentiment. This includes the Argentinean elections and continued unrest in Hong Kong.

Traders will now watch the upcoming U.S. Federal Reserve’s annual symposium scheduled for next week. The will be looking for clues on future of interest rates moves.