Asian Stocks Recover from Early Sell-off to Finish Mixed

July 3, 2018
Asian Stocks Recover from Early Sell-off to Finish Mixed

By Investors Hub

Asian stocks recovered from an early sell-off to end mixed on Tuesday amid rising U.S.-China trade tensions after the U.S. moved to block China Mobile from entering its telecommunications market on national security grounds.

Chinese stocks reversed steep losses to finish on a positive note and the yuan pared losses after sliding through 6.7 per dollar on expectations of intervention from policymakers to halt a rout.

The benchmark Shanghai Composite Index rose 10.79 points or 0.4 percent to 2,786.35. Hong Kong’s Hang Seng Index slumped 409.54 points or 1.41 percent to 28,545.57 as traders returned to their desks after a holiday on Monday.

Japanese shares closed near three-month lows as the July 6th deadline looms for the Trump Administration’s planned imposition of tariffs. The Nikkei 225 Index fell more than 1 percent at one point before recouping most losses to end the session down 26.39 points or 0.1 percent at 21,785.54.

The broader Topix Index dipped 0.2 percent to close at 1,692.80. Non-ferrous metal companies and shipping firms were among the worst hit on persistent worries about the growing threat of a global trade war.

Australian stocks rose notably after the country’s central bank left its key interest rate unchanged at a record low, as widely expected, saying its stance remains consistent with sustainable growth in the economy and achieving the inflation target over time.

The benchmark S&P/ASX 200 Index rose 32.40 points or 0.5 percent to 6,210.20, while the broader All Ordinaries Index closed 0.5 percent higher at 6,302.80.

The big banks rose 1-2 percent. Woodside Petroleum and Santos rose about 1 percent as oil prices climbed in Asian trading after Libya declared force majeure on significant amounts of its supply.

On the other hand, miners BHP Billiton, South32 and Rio Tinto lost 2-3 percent after commodity prices fell overnight on a firmer dollar.

Sigma Healthcare tumbled 3.1 percent on losing a contract to supply the Chemist Warehouse discount chemist chain. Ebos Group, which won the contract, jumped 5.8 percent to extend gains for the second straight session.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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