Stock markets in China witnessed an upswing after President Trump formally announced that both USA and China have finalized first phase of their trade deal and it will be ready for signature soon. Shanghai composite index shot up by 0.72 % while Shenzhen composite index went up by 1.46 % and Hang Seng witnessed increase of 1.19 %. This upward swing also affected other markets in Asia Pacific region and they rose significantly. While Japan’s Nikkei 225 index climbed up by 0.36 % South Korea’s Kospi went up by 0.39 %. Stock markets in Australia too witnessed an upswing and though S&P/ASX 200 remained flat, mining companies went up significantly. While Rio Tinto trimmed its early gains to trade at 0.52 %, Fortescue Metals swept up by 1.98 % and BHP Biliton rose by 0.95 %. Markets of Singapore, India, New Zealand and Malaysia are closed for holidays.
The overall broadcast index for Asia Pacific shares by MCSI was up by 0.50 %. Though HSBC reported that its third quarter pretax profits has fell by 18 % on YOY basis its profits in Asia climbed by 4 % when compared to last year due to resilient Hong Kong market. HSBC earns a large part of its profits from Hong Kong which has recently been plagued by political unrest. After the announcement shares of HSBC fell by 2.68 % and Hong Kong based AIA insurance company stated that the unrest has already affect its earnings. Financial Secretary Paul Chan of Hong Kong stated in a blog post that the city is now in recession and it is very difficult to achieve growth rate of 0 – 1 % as forecast by government. China’s commerce ministry stated on Saturday that both US and China have decided to address core issues and while US will import cooked poultry from China, the latter will lift ban on US poultry.