A lot of discussions have been going on about the problems in the relationship between China and the US, affecting a number of aspects like trade and economy. However, it came as a welcome break from the hostile situation when the Mainland Chinese shares gained significantly this week, becoming the biggest gainers. This comes in the wake of meetings held in Beijing the previous week as new meetings are scheduled in Washington as well. Other Asian markets also gained significantly although China definitely occupies the top position in this aspect.
The main advancement in the stock market took place in the Shanghai composite where a gain of 2.68% was observed along with Shenzhen composite which also saw a gain of 3.705%. Hang Send from Hong Kong also saw a gain of 1.5% that too at the wee hours of the trade cycle. Nikkei 225 and Topix were the significant gainers in Japan while Kospi and Samsung Electronics took the major chunk of the cake in South Korea. ASX 200 from Australia increased by 0.39% with Santos, Woodside Petroleum and Beach Energy following closely at its heels.
This gain comes in close association with the news that the Australian parliament, as well as several party servers, was hit by cyber-attacks and a security concern was raised. In Singapore, quite predictably, DBS were the biggest gainers. However, according to experts, though these gains are impressive, it came immediately after Friday, when the market was down and out. Thus, a lot of volatility is present, which makes it u unpredictable and investors should be very careful with the topsy-turvy trend.
The trade talks between the US and China has been on an encouraging note and President Trump has commented that if a deal is struck which is beneficial to both the parties then he will be more than happy and ‘honored” to remove any tariffs that are charged. The matters are a little too complicated at this moment though which has urged Trump to extend the deadline of the deal beyond March 1, 2019. However, if meaningful agreement is not reached, additional tariffs could be charged on Chinese goods, effective immediately. Kim Iskyan, a renowned analyst thinks that all these are just charades and there is not going to be any major changes soon.