Nikkei 225 upbeat along with Asian stocks


Asian stocks, Mainland Shanghai and Nikkei 225 trending points

  • Asian stocks index rose 0.3 percent in the intra-day trading on fresh optimism over US-China trade talk, as a four-day-long new round of talk began yesterday (February 11th)
  • Investors remain cautiously optimistic over a positive outcome on US-China trade deal, although the optimism could bear a sideways momentum, since excitement over the talks had been observed yesterday on US Navies venture through South China Sea
  • Asian stocks edged up along with gulf stocks, and Nikkei 225 posted an intra-day gain of 2.61 percent, its best intraday gain since January 4th, 2019

Major Asian stocks upbeat on fresh optimism over recent leg of trade talk

On Tuesday, the 12thof February, 2019, the Asian stocks inched up, as investors had been expecting a new round of trade talk could conceive fruit to resolve a haunting trade dispute, which had been hammering the global growth and evaporating trillions of corporate earnings since the last quarter of 2018.

Market sentiment had improved significantly on Tuesday (February 12th), as there had been a chattering in the market that the US lawmakers had reached a tentative deal on border security funding, which could prevail a partial government shutdown, which seemed to be imminent last week.

Following the reveal of the news, the S&P 500 e-mini futures in Asia jumped over 0.5 percent and the MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.3 percent. Apart from that, the index of mainland Shanghai index rose by 0.6 percent on fresh stimulus inclined by Chinese government to avert an upcoming global scale slowdown, such as lowering borrowing costs for the low- and middle-income businesses.

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ASX 200 daily price chart

ASX 200 daily price chart

Concomitantly, the South Korean KOSPU added 0.4 percent and Chinese export oriented ASX 200 jumped by 0.4 percent, which is considered to be a mirror of investors’ confidence towards Chinese economy.

Nikkei 225 daily chart

Nikkei 225 daily chart

The greenback of Asian shares was led by the Japan’s Nikkei 225, which surged by 2.61 percent, after a holiday in Japan on Monday (February 11th), posting its best intra-day gain since January 4th, 2019.

Bottom Line 

Although the trade war has been improving the market sentiment significantly and a renewed hope of averting a Federal Government Shutdown could have opened the Wall Street higher, yet there may not be a winner in the trade war, since China is highly unlikely to bend on the Intellectual property transfer rights and in a longer-term outlook, a flexible trade truce may not hover, given Trump administration’s over-exaggerative & nationalist economic policies.

In a near-term outlook, American dollar’s strength would be coming forth from the Fed’s revision of balance sheet and US stocks alongside European shares are likely to end higher in today’s intra-day trading, on rekindled optimism of an averted US Federal Government shutdown.

Read more on Asian stocks here

[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]


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