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Asian Stocks Reverse Early Losses Finish Higher

By Investors Hub

Asian stocks reversed early losses to finish mostly higher on Tuesday despite President Donald Trump imposing tariffs on another $200 billion worth of Chinese goods, as widely expected.

Investors braced for Beijing’s response to the new tariffs even as Trump threatened duties on about $267 billion more if China hits back against the latest U.S. action.

China’s Shanghai Composite Index soared 48.16 points or 1.8 percent to 2,699.95 as investors shrugged off the new 10 percent U.S. tariff on Chinese goods. Hong Kong’s Hang Seng Index climbed 151.81 points or 0.6 percent to 27,084.66.

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Japanese shares rallied as traders returned to their desks after a long holiday weekend. The Nikkei 225 Index jumped 325.87 points or 1.4 percent to 23,420.54, the highest close since February 1st. The broader Topix Index surged up 31.27 points or 1.8 percent to 1,759.88, the largest gain in six months.

The strength in the Japanese markets came amid expectations Prime Minister Shinzo Abe will win a third term as head of his political party on Thursday.

Insurer Dai-ichi Life Holdings rallied 4.2 percent and MS&AD Insurance soared 4 percent after U.S. Treasury yields hit a five-month high.

Meanwhile, Murata Manufacturing dropped 1.4 percent and Alps Electric lost 2.1 percent after Apple (AAPL) said the new round of tariffs would hit a wide range of products.

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Australian markets fell modestly as falling gold and copper prices on concerns over the U.S.-China trade dispute pulled down mining stocks.

The benchmark S&P/ASX 200 Index dropped 23.50 points or 0.4 percent to 6,161.50, and the broader All Ordinaries Index ended down 24.40 points or 0.4 percent at 6,269.50.

Mining heavyweights BHP Billiton and Rio Tinto ended mixed, while gold miners Newcrest, Evolution, Regis Resources and St Barbara lost 1-2 percent.

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Energy stocks also closed lower as oil prices dipped on concerns over the outlook for demand. Woodside Petroleum, Santos, Oil Search and Origin Energy tumbled 1-3 percent.

Financials bucked the downtrend, with banks Commonwealth and NAB rising around 0.2 percent.

On the economic front, minutes from the Reserve Bank of Australia’s September 4th meeting revealed that board members expect the country to see economic growth at a satisfactory pace.

Separately, a government report showed that house prices in Australia were down 0.7 percent sequentially in the second quarter, in line with expectations and unchanged from the three months prior.

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Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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