Asian stocks off highs as euphoria on trade wanes

Wednesday, 14. August 2019 08:26

Upbeat sentiment in the stock trading session on Wednesday in the Asia-Pacific region moderated toward the finish. A truce in the trade was between the United States and China yesterday prompted a jump on Wall Street and a drop in prices of safe havens like gold and Treasuries. Risk appetite weakened under the notion the US Federal Reserve wouldn't be as keen on policy easing if the global economy picks up pace, which would mean less stimulus for investing in equities. Of note, China acknowledged strengthening downward pressure but also expressed confidence in the results of its spending cuts and fiscal relief.

Japan's Nikkei 225 index finished 0.98% higher. The dollar dipped 0.34% to ¥106.3805 at 8:24 am CET and jumped 0.27% to 7.0298 offshore yuan. The People's Bank of China has set the yuan's daily midpoint rate at 7.0312, boosting it from yesterday's 7.0558, but it also announced a liquidity injection of 100 billion yuan in seven-day reverse repurchases.

In the most populous nation, the Shanghai Composite was 0.62% in the green at 8:10 am CET and the Shenzhen Composite advanced 0.93%. The Hang Seng was 0.5% higher in Hong Kong at 8:26 am CET. South Korea's Kospi gained 0.69%. The S&P/ASX earlier increased by 0.42% for the day.

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