Asian shares rise amid caution as trade talks start

  • by Ofeed Team
  • October 8, 2019, 9:7 AM
  • 19 Views
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Asian shares rose on Tuesday, but investors sentiment remained cautious over the upcoming trade talks between Washington and Beijing later this weekend, especially after U.S President Donald Trump said a quick deal was unlikely to happen.

After a week-long holiday, Chinese shares led gain in Asia, where the CSI 300 index surged 0.61 percent to finish at 3,837.68, despite an unexpected in China’s services data.  

Caixin services PMI released today slipped to a seven-month low of 51.3 in September from 52.1 in August, missing forecasts of 52.1.

Japan’s Nikkei 225 index closed 0.99 percent up at 21,587.78, driven by gains in technology stocks in South Korea and Taiwan. Australia’s S&P/ASX 200 rose 0.45 percent at 6,593.90.

Hong Kong Hang Seng index slightly recover some of its losses at 0.24 percent up to reach 25, 883, after violent protests earlier this week. 

The U.S. and Chinese deputy trade negotiators on Monday began two-day talks aimed at paving the way for the first cabinet-level negotiations later this week.

The talks began ahead of the planned increase in U.S. tariffs on Chinese goods worth $250 billion, to 30% from 25% on October 15.

As Investors, believe that these trade talks between the two sides help improve the mood within the global markets.

However, the prospects were reduced after Washington blacklisted some Chinese companies for Beijing's treatment of Muslim-majority ethnic minorities.

Overnight, Dow Jones fell 0.36 percent, S&P 500 Index slumped 0.45 percent and Nasdaq Composite dropped 0.33 percent.

Later in the day, U.S. producer prices for September may miss analysts’ forecasts due to the weakness in the manufacturing sector.

U.S. PPI rose 0.1 percent last month, while the core reading soared 0.2 percent, according to median projections.

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