Ending the trading week, Asia Pacific markets end up cautious as they focus on President Donald Trump’s press conference this coming May 29.
Investors in the Asia Pacific had their doubts in the markets today due to the recent developments that happened with China hammering down on approving its national security bill for Hong Kong.
Asia Pacific market recap
Here are the following results ending today’s trading week in the Asia Pacific region:
- Mainland Chinese stocks slightly rose on the day with the Shenzen and Shanghai Composite closing at 0.87% and 0.22%, respectively
- South Korea’s Kospi went slightly higher closing at 2,029.60
- Hong Kong’s Hang Seng Index slipped 0.74% with HSBC falling 2.72%.
- Japan’s Nikkei 225 fell slightly to 0.18% and the Topix index also shed 0.87%.
- Australia’s S&P/ASX 200 declined 1.63% as shares of its major banks dropped.
Amid the underwhelming performances in the Asia Pacific, over in the South East region, the Philippines seized the day ending its trading week.
The Philippine Stock Exchange Index (PSEI) closed 4.82% in anticipation of reopening its economy starting June 1.
In addition, they have received a US$500 million [AU$751 million] loan approval that would help the Philippines alleviate the coronavirus pandemic.
The U.S. threats have no impact on China’s economy
President Donald Trump will hold his press conference on May 29 about China but did not provide more details.
With the U.S. potentially losing one of its largest trade partners, the tables may have been turned for the economic superpowers.
In CNBC’s Street Signs, Tsinghua University economics professor Li Daokui claims that any threats to abolish Hong Kong’s special privileges from the U.S. won’t be “very much credible” because it will also risk American businesses in the process.
In addition, Yukon Huang, a senior fellow with the Asia program at Carnegie Endowment for International Peace said that Trump has to send a “firm signal” regarding the Hong Kong situation.
One of the solutions that he mentions is that President Donald Trump may need to remove the free trade status in the firms in Hong Kong but it may result in hurting the U.S. more than China due to its imposed tariffs, similar to what Li has claimed.
He further adds that if President Donald Trump orders sanctions to Chinese officials, it may lower investors’ confidence in the global economy.
China has also been doing its moves on the markets starting with NetEase, a U.S.-listed Chinese online gaming company, which is set to get its secondary listing in Hong Kong. This is in response to the U.S. blacklisting more than a dozen Chinese firms.
The fate of the Asia Pacific markets as well as the rest of the world may depend on what the POTUS will do with China moving forward.
Featured image courtesy of jessica45/Pixabay