Nikkei increases, but Hong Kong stocks slide as tensions with China escalate

0
74


Asian stocks traded mainly on the upside Monday, with Tokyo stocks winning on expectations of a pandemic emergency that will be lifted for all of Japan.
But stocks fell in Hong Kong on Monday after police used tear gas to quell weekend protests over a national security bill for the former British colony.
US markets will be closed for Memorial Day.

Nikkei from Japan
NIK,
+ 1.73%

1.7% while the Hong Kong Hang Seng Index
HSI,
+ 0.09%

fell 0.2%. The Shanghai composite
SHCOMP,
+ 0.14%

was flat and the Shenzhen composite
399106,
-0.09%

0.2% plunge. Kospi in South Korea
180721,
+ 1.24%

increased 1.2% while Taiex in Taiwan
Y9999,
+ 0.55%

increased by 0.5%. Australia S & P / ASX 200
XJO,
+ 2.15%

increased 2.1%. The markets of Singapore and Indonesia have been closed for the holidays.

Protests in Hong Kong, in response to legislation under discussion by the Chinese National People’s Congress, which is now meeting in Beijing, were the largest in months despite the ban on large rallies to prevent the spread coronavirus.
The resumption of sometimes violent pro-democratic protests that shook the city for much of 2019 increases the likelihood of new tensions between Beijing and Washington over China’s efforts to exercise more control over the semi-autonomous territory.
“With more riots on the street amid the spillage of COVID-19 and a possible exodus of jobs from the city’s financial center, things will surely get worse before they get better,” said Stephen Innes d ‘AxiCorp in a comment.
Japanese Prime Minister Shinzo Abe is expected to announce later on Monday that the state of emergency imposed to combat the pandemic will end on a national scale after a group of experts has approved the plan.
Japan has gradually dropped calls for people to stay at home and for some businesses to stay closed as reports of confirmed COVID-19 cases and related deaths have declined. Japan has reported approximately 820 deaths and more than 16,000 confirmed cases of new coronavirus, relatively few compared to hard-hit countries like the United States.
The Prime Minister’s announcement will come after the markets close, but that decision has already been taken into account. Some department stores and restaurants have already reopened, including in Tokyo, where the emergency is technically still in place.
Although people wear masks and their temperature is taken at the doors of certain public places, there is still the fear that a resumption of normal economic activity and fewer precautions for social distancing will cause a resurgence of infections.
US stock index futures rose Monday. Inventories were little changed on Friday but for the week, the Dow
DJIA,
-0.03%

climbed 3.3%, the S&P 500
SPX,
+ 0.23%

3.2% advanced and the Nasdaq Composite
COMP,
+ 0.42%

increased 3.4%.
Oil prices rose, US benchmark crude
CLN20,
+ 0.60%

rising to $ 33.60 a barrel in ecommerce on the New York Mercantile Exchange, while Brent crude oil from July
BRNN20,
+ 0.11%

, the global benchmark reached $ 35.32 a barrel.
The US dollar
USDJPY,
+ 0.07%

recovered 107.70 Japanese yen, up slightly.

LEAVE A REPLY

Please enter your comment!
Please enter your name here